Mapletree proposes the purchase of two new properties in South Asia.
Mapletree Logistics Trust (MLT) is set to expand in South Asia through the proposed acquisition of two warehouses in India.
In a bourse disclosure, Mapletree announced its plans to purchase warehouses in Pune and Maharashtra India through the acquisition of the property holding company for approximately $84.2m.
"Strong demand for logistics space is underpinned by a large growing consumer market, rapidly developing e-commerce, India’s increasing importance as a major manufacturing hub in Asia Pacific as well as a severe lack of supply of Grade A warehouses.The acquisition will enhance our geographical diversification andnetwork connectivity, positioning MLT well to capture future growth opportunities in the region," MLT CEO Ng Kiat said in a statement.
Mapletree expects the acquisition to generate a net property income yield of 7.4%. It will be funded by debt, to be completed by the second quarter of the year.
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