Mapletree Logistics Trust divests two warehouse properties in Japan for S$37.5 million

MAPLETREE Logistics Trust (MLT) has completed the divestment of two warehouse properties in Japan for 4.25 billion Japanese yen (S$37.5 million).

Its manager said on Wednesday (Nov 27) that MLT’s trustee – HSBC Institutional Trust Services (Singapore) – had entered into sale and purchase agreements with a third-party buyer for the proposed divestment of Toki Centre and Aichi Miyoshi Centre in Japan.

This was done through HSBC Institutional Trust Services (Singapore)’s special purpose entities incorporated in Japan.

Toki Centre is a two-storey warehouse located in Gifu prefecture with a net lettable area of 16,545 square metres (sq m). The property is about 16.8 years old.

The centre’s sale price of 2.4 billion yen is 9.2 per cent above the latest valuation of 2.2 billion yen, as at Oct 31, 2024.

Aichi Miyoshi Centre is a four-storey warehouse located in Aichi prefecture, with a net lettable area of 6,723 sq m. The property is about 17.7 years old.

The centre’s sale price of 1.8 billion yen is 7.4 per cent above the latest valuation of 1.7 billion yen, as at Oct 31, 2024.

MLT’s manager said the divestment is in line with its efforts to rejuvenate its portfolio through “selective divestments of assets that are no longer aligned with its strategy”.

It added that capital released from the divestments will provide MLT with greater financial flexibility to pursue investment opportunities in high-specification, modern logistics facilities “with higher growth potential”.

The divestment is not expected to have a material impact on MLT’s net property income for FY2024 and FY2025.

Following the divestment, MLT’s portfolio stands at 183 properties, with the total value of assets under management at S$13.3 billion. This is based on MLT’s financials as at Sep 30, 2024, and includes the divestment of a property in China, which was completed on Nov 15.

Units of MLT closed unchanged at S$1.28 on Wednesday, before the announcement.