134 views

Mapletree Logistics Trust boosts South Korea presence with $100.3m acquisition

The company's e-commerce revenue exposure in South Korea is expected to increase to 36%.

A South Korean logistics centre, worth an estimated $100.3m ( KRW 88.5b), is Mapletree Logistics Trust’s (MLT)  latest acquisition

Baeksa Logistics Centre is a 4-storey single block dry logistics facility, with a total gross floor area of over 41,000 sqm on around 30,000 sqm of freehold land. It has a floor loading of over 20 kilonewtons per sqm, a floor-to-ceiling height of 9 to 10 metres, and a full sprinkler system. Direct ramp access and docking yards also make up the structure. 

The property is located in northeast Incheon as part of the established Yongin-Incheon logistics hub targeting the Seoul Metropolitan Area. This puts in close proximity to the National Road #3 expressway, which serves as a connection to Gangman and eastern Seoul. 

Through the acquisition, MLT’s e-commerce revenue exposure in South Korea is expected to increase to 36% from 31%. A weighted average lease expiry of around 5.1 years and built-in annual rent escalations is also seen with the property. 

“The logistics industry has benefitted from recent structural trends such as growing e-commerce and building supply chain resiliency. This acquisition, with its modern specifications and 100% occupancy underpinned by a leading ecommerce company, is expected to be yield-accretive to MLT,” commented Ng Kiat, CEO, Mapletree Logistics Trust Management Ltd. 

The property is also estimated to generate a net property income yield of 4% based on the property purchase price. The transaction is expected to be completed by 1Q FY22/23, and will be 100% funded by debt. Upon completion, a gearing ratio of around 39.6% on a pro forma basis is expected. 

Currently, the property is fully leased to Hauser, an e-commerce company specialising in furniture storage and delivery. 

 

Follow the link s for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Chinese fine dining finds its next course in Singapore
The city-state’s high spending power and big Chinese commune make it an ideal entry point.
Food & Beverage
ArrowBiome develops technology to kill specific bacteria in humans
The Singapore startup focuses on the personal care market but may expand to gut health soon.
Healthcare
Mediation drives legal hiring growth in Singapore
Corporate and commercial law is also set to boost hiring in 2025 amid M&As.
HR & Education