MLT – BT

MapletreeLog acquires second Korean warehouse

MAPLETREE Logistics Trust (MapletreeLog) is investing $32 million to buy a second warehouse in South Korea.

The company yesterday announced it has signed a conditional sale and purchase agreement with the property’s vendor Multi-Q Logistics.

The purchase consideration is 28 billion won or around $32 million Singapore dollars. This deal is expected to be completed at the end of the current quarter.

If the acquisition is fully funded by debt, MapletreeLog’s gearing level will increase to 44.2 per cent. the firm said.

The company’s latest buy is made up of two blocks of warehouses in South Korea’s Gyeonggi-do province.

The first block is a three-storey warehouse and office facility with a gross floor area (GFA) of around 20,800 square metres (sq m).

The second is a four-storey warehouse with ancillary cold storage facilities. Its GFA is 7,900 sq m, the firm said in a statement.

Under the deal, Multi-Q Logistics will lease back the property for five years at rental prices that provide for annual escalation.

‘Aside from its attractive net property yield, the property has unutilised plot ratio which can add an additional GFA of about 3,800 sq m when utilised. This acquisition continues our building of a stronger foothold in South Korea,’ said MapletreeLog’s chief executive Richard Lai.

This firm’s second acquisition in Korea is also its seventh regional buy since December last year.

To date, MapletreeLog has announced $460 million worth of acquisitions and some $260 million of these have been completed.