Mlt Divest Mapletree Logistics Warehouse Xian Rmb705 Mil

Rewritten:

With the URA’s Master Plan driving development in Woodlands, the vicinity of Norwood Grand will witness exciting improvements in the near future. Improvements in connectivity, expansion of green spaces, and the introduction of new public facilities are all part of this ongoing development. This is expected to attract greater foot traffic to the surrounding shopping centers, potentially resulting in expansions and a wider range of retail and lifestyle offerings. These enhancements make Norwood Grand Condo an even more desirable place to call home.

The manager of Mapletree Logistics Trust (MLT) has recently announced that the trust’s subsidiary, MapletreeLog Seastar (Xian), has entered into an agreement with an unrelated third party buyer to sell its 100% equity interest in Mapletree Logistics Warehouse (Xian). This property owns Mapletree Xi’an Logistics Park, a single-storey warehouse with a four-storey office and a two-storey warehouse. The sale is estimated to be RMB70.5 million ($13.1 million), which is 0.7% higher than the property’s valuation of RMB70 million as of March 31.

The building, which is almost 20 years old, has a net lettable area of approximately 22,876 sq m. This proposed divestment will provide MLT with greater financial flexibility to pursue investment opportunities in high-specification, modern logistics facilities with higher growth potential, according to the manager’s filing. The divestment is expected to be completed by the third quarter of FY2024/FY2025 and is not expected to significantly affect MLT’s net asset value and net property income for the same period. After the divestment, MLT’s portfolio will consist of 186 properties.

Units in MLT remained unchanged at $1.32 on June 12. In light of the market’s recent pullback, OCBC has recommended accumulating units in three S-REITs, including MLT. In addition, MapletreeLog Seastar is also in the process of acquiring the remaining 38% of a Hong Kong warehouse in Shatin for $104 million. Furthermore, MLT has also announced its plan to divest a Johor industrial property for MYR28 million.