TRANSPORT & LOGISTICS | Staff Reporter, Singapore

Mapletree Logistics Trust could recover through warehouse purchase

Its tenancy risk has risen in the near-term.

Mapletree Logistics Trust’s (MLT) plan to buy five warehouses could push the five into recovery amidst near-term rise in tenancy risks, Maybank Kim Eng said.

However, the bank thinks funding for the purchase is still unclear as it will take time to sell its $200m worth of MLT’s low-yielding assets.

Also readMapletree Logistics Trust to buy 5 warehouses for $778.3 million

Maybank thinks that MLT’s tenancy risk has risen partly from CWT leases growing 9.5% from 6.5% of its gross revenue. Despite this, Maybank noted that rapid e-commerce expansion, increasing supply chain efficiency will buoy end-user demand.

“MLT will further leverage its widening logistics provider network in direct leasing arrangements with remaining 30% of third-party end-users to drive occupancies and rentals,” Maybank KE said.

Besides the 5 warehouses, MLT has also secured a right of first refusal (ROFR) on CWT’s Mega Integrated Logistics Hub in Jalan Buroh subject to a prior ROFR to JTC. Located in three key western logistics clusters which is 20 minutes away from the city centre, said properties have accessibility to the upcoming Tuas Mega Port.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.