MAPLETREE LOGISTICS TRUST
M44U.SI
Mapletree Logistics Trust: Proposed acquisition of 4 Sydney properties for A$85m
- Mapletree Logistics Trust (MLT) proposed to acquire a portfolio of four dry warehouse facilities in Sydney, Australia, for a purchase consideration of A$85m (~S$84.4m).
- All four properties are sitting on freehold land, have a combined GFA of 52,907 sq m, and offer a NPI yield of 7.1%. The properties are also 100% leased to seven tenants (WALE of 5.5 years by NLA) which are established local enterprises from diverse industry sectors serving the domestic Australian economy.
- This proposed acquisition would boost MLT’s presence in Sydney to five assets and increase its gross revenue contribution from Australia to ~6.1% from 4.3%, thus also adding some diversification to its income streams.
- The transaction is expected to be funded by proceeds raised from its recent issuance of S$250m of perpetual securities. Hence MLT’s aggregate leverage is estimated to decrease from 39.6% (as at 31 Mar 2016) to ~36% post completion, which is expected in Jul 2016, subject to receipt of approval from the Australian Foreign Investment Review Board.
- We maintain our HOLD rating and S$1.02 fair value on MLT.
Wong Teck Ching Andy CFA
OCBC Securities
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http://www.ocbcresearch.com/
2016-05-30
OCBC Securities
SGX Stock
Analyst Report
1.02
Same
1.02
