COMMERCIAL PROPERTY | Staff Reporter, Singapore

Mapletree Logistics acquires Hong Kong warehouse for $834.8m

It will boost Hong Kong's income contribution from 17% to 27%.

Mapletree Logistics Trust (MLT) acquired Mapletree Logistics Hub Tsing Yi in Hong Kong SAR for $834.8m.

According to a press release, the 11-storey warehouse has a net lettable area of 148,065 sqm.

The property is near the Kwai Chung-Tsing Yi container terminals and is connected to highways to the Hong Kong International Airport and the Mainland China boundary.

It also has large, regular shaped floor plates ranging from 36,000 to 147,000 sqft. and column-to-column spacing of 12 metres by 11 metres, which allow for an efficient internal setup. It also has a clear height of 5.5 metres for three-pallet storage, and a floor loading of 17.5 kiloNewtons.

The Hong Kong warehouse has a 100% occupancy. Its tenants include Ever Gain, Adidas, HKTV and DKSH.

The acquisition will be funded by the company's equity and debt.

Here's more from the company:

The Property is a strategic addition to MLT’s existing portfolio. Following the Acquisition, Hong Kong will become the second largest income contributor to MLT accounting for 27% of its NPI, up from 17% previously.

In addition, three of the Property’s tenants will be amongst the top ten tenants of MLT, further reducing the risk exposure of the Trust to any single tenant and diversifying the Trust’s
tenant base.

The agreed property value of HK$4.8 billion for the Property represents a discount of approximately 3.0% and 2.4% to the independent valuations conducted by Colliers (commissioned by the Manager) and CBRE (commissioned by the Trustee) respectively.

Including acquisition-related expenses, the total acquisition cost is expected to be approximately HK$4.9 billion (S$847.6 million).

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