Mapletree Logistics Trust to develop Japan asset for $16.2m

It will be completed by March next year.

MLT has announced its plan to unlock its utilised plot ratio of its asset, Moriya Centre, in Ibaraki (Japan), with Nippon Express at a development cost of approx. SGD16.2m.

According to a report by RHB, this will effectively add 26% of gross floor area (GFA) to the asset, and hence enhancing the yield and value of the asset.

Given that Nippon Express is one o f MLT’s top 10 tenants, analysts at RHB think that the REIT possess the ability to retain its top tenants and be able to meet its tenant’s demand for additional space. The AEI work will commence in Apr15 and be completed by March next year. Upon completion, Nippon Express will lease the new additional space with an annual rental escalation till Dec21.