Mapletree Logistics Trust to acquire five South Korea logistics properties

The proposed acquisition is priced at $334.8m.

Mapletree Logistics Trust (MLT) is set to acquire five logistics assets in South Korea for $334.8m (KRW 280b) as it aims to strengthen its portfolio and competitive positioning in the country through the addition of modern, high-quality assets, the company announced.

The facilities to be acquired are Dongsan Logistics Centre, AbleLogis Logistics Centre, CoreLogis Logistics Centre, Bukuk Logistics Centre, and Gwan-ri Logistics Centre. They are modern warehouses with a weighted average age of 4.2 years and span almost 150,000 square metres in total gross floor area.

In a filing, MLT said that the properties will have an implied net property income yield of about 4.5% based on the current purchase price.

The acquisitions are expected to be accretive to MLT’s distribution per unit, and the group’s aggregate leverage ratio is projected to be approximately 38.9% upon completion of the acquisition.

According to MLT, the investment will also capitalise on the growth opportunities from accelerated e-commerce adoption and the growing demand for quality warehouse space.

MLT chief executive officer Ng Kiat said the acquisition is a strategic opportunity for the group to acquire a portfolio of high specification warehouses.

“The acquisitions will increase our gross floor area in South Korea by 40%, enabling us to better cater to the current and future needs of our customers and capture growth opportunities in the logistics market,” Ng said.

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