Mapletree Logistics Trust to sell Malaysian warehouse for $9.2m

They want to get rid of low-yielding properties.

Mapletree Logistics Trust (MLT) sold its warehouse Senai-UPS to V.S Industry Berhad for $9.2m.

According to a press release, MLT entered a purchase agreement with the buyer to sell the single-storey warehouse with a two-storey office building.

Senai-UPS has a gross floor area of 11,494 sqm on a land site of approximately 18,165 sqm. The property has been 51% occupied since early 2015 when the existing tenant reduced its leased space.

"Given the Property’s low yield and limited future income growth, and after evaluating various asset options including redevelopment, the Manager concluded that divesting the Property at the offered price is desirable in the interest of MLT’s Unitholders," MLT said.

The property was previously bought in 2007 for $8.45m (MYR25.5m) and valued at $6.79m (MYR20.5m) as at 31 October 2017.