Mapletree Logistics Trust to sell three warehouses in Malaysia for RM157.5 million

THE manager of Mapletree Logistics Trust (MLT) announced on Tuesday (Sep 10) its proposal to divest three warehouse properties in Malaysia for RM157.5 million (S$47.7 million).

Its manager said that HSBC Institutional Trust Services (Singapore), in its capacity as the trustee of MLT, had entered into separate conditional sale and purchase agreements with third-party buyers for the respective proposed divestments of the three warehouses – Linfox, Celestica Hub and Zentraline.

Linfox, which is located in Shah Alam, Selangor, comprises a single-storey detached warehouse and an annex double-storey office. It has a net lettable area of 17,984 square metres (sq m) and building age of around 27 years.

The manager said that the proposed sale price of RM72 million for Linfox is 28.6 per cent above the latest valuation of RM56 million as at March 31, 2024.

Celestica Hub, located in Senai, Johor, comprises two blocks of single-storey industrial warehouses with a total net lettable area of 22,304 sq m and has an average building age of about 18 years. The proposed sale price of RM43.2 million for Celestica Hub is 2.9 per cent above its latest valuation as at March 31, 2024.

Zentraline is a single-storey detached warehouse with annex office space located in Shah Alam, Selangor. It has a net lettable area of 14,529 sq m and the property is about 23 years old. Its proposed sale price of RM42.3 million is 1.9 per cent above the property’s latest valuation as at March 31, 2024.

The trust’s manager said that the proposed divestments are in line with the manager’s strategy to rejuvenate its portfolio through selective divestments.

“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,” said the manager.

The proposed divestments are expected to be completed by FY2025. They are not expected to have a material impact on MLT’s net asset value and net property income for FY2025.

Prior to the announcement, units of MLT closed at S$1.43 on Tuesday, up S$0.01 or 0.7 per cent.