MAPLETREE LOGISTICS TRUST
M44U.SI
Mapletree Logistics Trust - Proposed Sale Of 7 Tai Seng Drive
- Mapletree Logistics Trust (MLT) announced that it has granted an Option to Purchase to its sponsor, Mapletree Investments Pte Ltd, for the proposed divestment of its 7 Tai Seng Drive property at a sale consideration of S$68.0m, subject to approval from JTC.
- MLT believes that this 20-year old seven-storey building has older warehouse specifications with limited scope for future redevelopment into a modern ramp-up logistics facility. It was acquired in 2006 for S$38.0m and valued at S$31.8m, as at 31 Mar 2017.
- Management intends to distribute the divestment gains from the transaction to its unitholders, after taking into account all relevant costs and expenses, while the capital released may be used to fund committed investments and/or pare down debt.
- Completion is expected by 4QFY18 if the Option to Purchase is exercised.
- We maintain our HOLD rating and S$1.15 fair value estimate on MLT.
Wong Teck Ching Andy CFA
OCBC Investment
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http://www.ocbcresearch.com/
2017-08-14
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