Valuation risks remain

MAPLETREELOG ACQUIRES SINGAPORE PROPERTY FOR S$15.2 MILLION

Singapore, 21 September 2007 – Mapletree Logistics Trust Management Ltd. (“MLTM”), Manager of Mapletree Logistics Trust (“MapletreeLog”), is pleased to announce that MapletreeLog, through its Trustee, HSBC Institutional Trust Services (Singapore) Limited, has signed a Put and Call Option Agreement to acquire a warehouse in Singapore for a total consideration of about S$15.2 million.

The vendor of the property, located at 10 Tuas Avenue 13, Singapore 638983, is Pioneer Districentre Pte Ltd (“Pioneer”), which will lease back the property for 7 years, with an option to extend for a further 7 years. The acquisition will be accretive to MapletreeLog’s distribution per unit (“DPU”). The pro forma financial effect of the acquisition on the DPU for the financial year ended 31 December 2006 is an additional 0.04 Singapore cents per unit¹.

Rationale for the acquisition

Mr. Chua Tiow Chye, Chief Executive Officer of MLTM, said, “We are very pleased with this acquisition from Pioneer. The property is located within a cluster of light industrial and logistics facilities and is easily accessible to other parts of Singapore via Ayer Rajah Expressway and Pan Island Expressway. We are delighted to welcome Pioneer to our family of tenants. This accretive asset adds to the Trust’s stable core of Singapore properties, which will generate long-term and stable returns for unitholders. Furthermore, given the tight supply situation for high quality logistics real-estate in good locations, rentals and capital values are expected to remain firm.”

The principal activities of the Pioneer are those of container storage, container repair and engineering work, transportation, warehousing and related services. Colliers International, in its May 2007 “Asia Pacific Industrial Market Overview”, highlighted the industry-friendly tax incentives as well as the strong demand coupled with tightening supply as the main factors that will generate and underpin demand for warehouse space in Singapore.

Funding

The acquisition is expected to be completed by 4Q 2007. T he Manager is confident that at its completion, MapletreeLog will have sufficient debt capacity to fund the acquisition wholly by debt. However, this does not preclude the Manager from exploring alternative means of funding should the need arise.

General Description of the property

The property is a 5-storey warehouse facility with ancillary office at Tuas Avenue, Singapore. The sales and leaseback arrangement with Pioneer will include the existing building of GFA of 10,822 sqm and a proposed extension of approximately 2,521 sqm of additional GFA. The expected commencement date of the proposed extension is 4Q 2007 and the completion date is expected to be end of 4Q 2008. This acquisition for a total consideration of S$15.2 million takes into account of the proposed extension area. The property has been valued at S$15.7 million by CKS Property Consultants Pte Ltd, dated 31st July 2007.

¹ Assuming MapletreeLog has purchased, held and operated the property for the financial year ended 31 December 2006 (based on 41 properties) and that the acquisition is 100% debt-funded.

Source : SGX

MapletreeLog to invest in Japan centre

$92 million deal on distribution centre in Kanto region due to be completed in ’08

MAPLETREE Logistics Trust is investing $92 million in a distribution centre in the Kanto region of Japan.

Announcing this yesterday, Mapletree Logistics Trust Management (MLTM), the manager of the trust, said that MapletreeLog, through its wholly owned subsidiary, has executed a conditional agreement eventually to acquire the beneficiary interest of the distribution centre, which is now under construction.

Completion of the acquisition is expected to be some time next year.

The deal will be accretive to MapletreeLog’s distribution per unit (DPU) and the pro forma financial effect of the acquisition on the DPU for the financial year ended December 2006 would be an additional 0.16 Singapore cent per unit, MLTM said.

MLTM chief executive officer Chua Tiow Chye said: ‘We are very pleased with this acquisition, our seventh property in Japan. This property is located in one of the key logistics zones in the Kanto region and will be leased to a tenant from a leading Japanese manufacturing group. With a lease tenure of 20 years, this will bolster our core base of long leases with stable yield and recurrent rental income.

‘This will complement the shorter-term leases in our portfolio in higher- growth markets such as China, Malaysia and Hong Kong.’

Given the relatively lower cost of borrowing in Japanese yen, the trust said it intends to fund the acquisition wholly by debt.

As at June 30, MapletreeLog has a portfolio of 58 logistics assets in Singapore, Hong Kong, China, Malaysia and Japan with a total book value of about $2.1 billion.

MAPLETREELOG EXPANDS JAPAN PORTFOLIO WITH ACQUISITION OF DISTRIBUTION CENTRE

Singapore, 20 September 2007 – Mapletree Logistics Trust Management Ltd. (“MLTM”), Manager of Mapletree Logistics Trust (“MapletreeLog”), is pleased to announce that MapletreeLog, through its wholly-owned subsidiary, has executed a conditional agreement to eventually acquire the beneficiary interest of a distribution centre currently under construction, when completed in Japan for a total consideration of about S$92 million¹.

The property is located in the Kanto region. Completion of the acquisition is expected to be sometime in 2008.

The deal will be accretive to MapletreeLog’s distribution per unit (“DPU”) and the pro forma financial effect of the acquisition on the DPU for the financial year ended 31 December 2006 would be an additional 0.16 Singapore cents per unit².

Benefits and rationale of the Acquisition

Mr. Chua Tiow Chye, Chief Executive Officer of MLTM, said, “We are very pleased with this acquisition, our 7th property in Japan. This property is located in one of the key logistics zones in the Kanto region and will be leased to a tenant from a leading Japanese manufacturing group. With a lease tenure of 20 years, this will bolster our core base of long leases with stable yield and recurrent rental income. This will complement the shorter term leases in our portfolio in higher growth markets such as China, Malaysia and Hong Kong. ”

In its “Asia Pacific Investment Market Review, 1H2007”, CB Richard Ellis highlights investors’ positive outlook on the Japanese real estate market, with demand for high-specification logistics space remaining strong in major regional cities. The Bank of Japan’s latest Tankan corporate surveys showed that corporate capital spending by major firms have stayed firm.

CBRE notes that substantial demand for industrial properties was observed from local investors, end-users and foreign funds, fuelled by robust re-export activities, optimism over the local economy and the sector’s higher yields relative to other real estate sectors. There is a shortage of quality industrial premises that meet the stringent investment criteria of institutional buyers, especially those of larger-scale.

Funding

Given the relative lower cost of borrowing in Japanese yen, the Manager intends to fund the acquisition wholly by debt.

General Description of the property

The property is a build-to-suit facility, with high specifications catering specifically to the tenant’s needs. Construction of the distribution centre is targeted to be completed sometime in 2008. It is located within one of the key logistics nodes in the Kanto region. The property is easily accessible via major roads and expressways.

¹ Purchase consideration of JPY6.9bn, based on an exchange rate of S$1.00 to JPY 75.25
² Assuming that MapletreeLog had purchased, held and operated the subject properties for the whole of the financial year ended 31 December 2006 (based on 41 properties) and that the acquisition is fully funded by debt

Source : SGX

Expanding its footprint in Asia