Mapletree Logistics Trust sells Old Toh Tuck Road property
It was transacted at an attractive price of S$14.25m.
Mapletree Logistics Trust (MLT) has completed the divestment of its 20 Old Toh Tuck Road property at a sale consideration of S$14.25m. "This was transacted at an attractive price, in our view, as it was higher than the purchase price of S$11.6m and last valuation of S$13.0m (as at 31 March 2016)," said OCBC Investment Research.
OCBC noted that the property is already 18 years old and has been vacant since March 2016 following the expiry of a master lease, “thus making sense for MLT to divest it.”
Here’s more from OCBC:
Looking ahead, management has signalled to the market that it will continue to explore opportunities to recycle its capital. This would involve divesting its older properties with less modern specifications and/or lower yields and redeploying capital into new investments, including deepening its presence in Australia.
At current price level, MLT is trading at FY17F and FY18F distribution yields of 6.8% and 7.0%, respectively, which we believe is fair.