Mapletree Logistics Trust - RHB Invest 2016-09-26: Acquires third logistics property in Vietnam

Mapletree Logistics Trust - RHB Invest 2016-09-26: Acquires third logistics property in Vietnam MAPLETREE LOGISTICS TRUST M44U.SI

Mapletree Logistics Trust - Acquires third logistics property in Vietnam

  • Mapletree Logistics Trust (MLT SP) announced the acquisition of Mapletree Logistics Park Phase 2 from its sponsor Mapletree Investments Pte Ltd for VND 339.2b (~SGD 20.6m). 
  • The property has a remaining lease of 39 years and is located in Vietnam Singapore Industrial Park II, Binh Duong Province, Vietnam. The buildings comprises of four single-storey blocks of multi- tenanted warehouses with mezzanine offices and is 100% leased with a remaining WALE of 1.8 years.


Our view: 

  • The acquisition is yield accretive with initial NPI yield of 9.9% (compared to portfolio NPI yield ~6%) and is purchased at a 2% discount to the average of 2 independent valuers valuations.
  • The acquisition size although small ( < 1% total asset value) is positive as it provides MLT with a direct exposure to growing demand of Vietnam's warehousing and logistics facilites. 
  • Post-acquisition, Vietnam market will account for nearly 1.9% of total contribution (1.2% previously). 
  • We maintain our Neutral recommendation with TP of SGD 0.89. 



Vijay Natarajan RHB Invest | http://www.rhbinvest.com.sg/ 2016-09-26
RHB Invest SGX Stock Analyst Report NEUTRAL Maintain NEUTRAL 0.890 Same 0.890

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