MIT – BT

Mapletree Industrial Trust, Soilbuild win JTC properties

They bagged over 300,000 sq m of industrial space for $688.6m

MAPLETREE Industrial Trust (MIT) and Soilbuild Group have secured over 300,000 square metres worth of industrial space from JTC Corporation at a combined price of $688.6 million, JTC said yesterday.

MIT took up the more expensive tranche – which consisted of 11 blocks of flatted factories and amenity centres – which was sold by JTC at $400.3 million.

The other tranche – comprising 10 blocks of flatted factories and amenity centres – was sold to Soilbuild for $288.3 million.

The factories are located mainly in places such as Kolam Ayer, Kallang Basin, Tai Seng, Bedok and Kampong Ubi.

This is the second divestment of industrial properties by JTC.

The first was finalised in 2008 when JTC sold 39 high-rise ready-built factories worth a total of $1.7 billion to Temasek Holdings’ unit Mapletree Investments.

According to an earlier BT report, at least five parties had submitted bids in the first phase of the two-stage tender process that closed in early March.

The contenders could bid for either or both tranches of assets and had to state their indicative bid prices for the respective tranche of assets, as well as listing their track record, financial strength and proposed business plans for the properties, among other things.

The three parties were then shortlisted and invited to perform due diligence on the assets in the tranche or tranches they were eyeing.

The same report cited analysts saying that the bid price is likely to be the main factor that JTC will use in deciding whom to award the two tranches of properties to under the second stage of the tender process.

This is because it would have factored in the qualitative factors in shortlisting the bidders under stage one.

Shares of MIT gained one cent to close at $1.18 yesterday. Soilbuild was privatised last year.