The ramp-up warehouses are inside key areas including approved chemical and food zones.
Mapletree Logistics Trust (MLT) will purchase 5 warehouses for $778.3m, an announcement revealed. The properties in Pandan Avenue, Tanjong Penjuru, Fishery Port Road and Toh Guan Road East will be bought from CWT through a sale-and-leaseback deal.
The acquisitions are part of MLT’s plan to rejuvenate its portfolio with the addition of modern logistics facilities.
“Total gross floor area in our Singapore portfolio will increase by almost 20% to over 20 million square feet, allowing us to benefit from Singapore’s continued growth as a global logistics hub,” Mapletree CEO Ng Kit said.
With a combined gross floor area (GFA) of 3,212,045 sqft, the seven properties are located in three key logistics clusters in the western region of Singapore that can be accessed by major arterial road networks. They are also near Jurong Port and PSA Terminals.
Three of the properties including 4 Pandan Avenue, 52 Tanjong Penjuru and 38 Tanjong Penjuru, are inside a chemical zone and can be used for chemical cargo storage. Meanwhile, 6 Fishery Port Road is located in a food zone and equipped with cold storage facilities.
“The supply of such specialised warehouses in Singapore is limited as they require licensing and are only allowed to operate in approved zones,” the firm said.
The warehouses have a floor loading of 20 to 50 kilonewton per sqm and a floor-to-ceiling height of 9 to 14 metres. They have a weighted average age (by net lettable area) of 4.8 years and a total gross floor area of 3.2 million square feet.
Compared to conventional cargo-lift warehouses, the ramp-up warehouses provide direct vehicular access provide direct vehicular access to all levels and offer greater efficiency in the movement of cargo as well as lower operating and maintenance costs.
“With this accretive acquisition, we will be able to accelerate our rejuvenation programme so as to further enhance the long-term returns to our Unitholders.” the CEO noted.
MLT is looking into using proceeds from equity fundraising and potential divestments to fund the deal. When completed, the firm’s total assets will reach $7.61b.
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