Mapletree Logistics Trust buys properties in Vietnam and South Korea

SINGAPORE - Mapletree Logistics Trust bought a warehouse in Vietnam and another in South Korea for about $42.2 million, said its manager on Friday.

Ms Ng Kiat, the manager's chief executive, said the Vietnam purchase "will establish our first presence in North Vietnam, tapping into the growing distribution network serving Hanoi and its surrounding markets".

The trust noted that the warehouse in Vietnam is in an industrial park about 20 km from Hanoi city centre, and is near a highway system that links to Hanoi, Noi Bai International Airport, Hai Phong Seaport as well as the Vietnam-China border.

"Given its proximity to the city centre and good connectivity to major transport infrastructure", the trust said the warehouse is ideal as a distribution centre.

Ms Ng added that the South Korean warehouse will "further strengthen our presence in Gyeonggi-do, a prime logistics hub near Seoul, to 11 assets with a total gross floor area of about 330,000 sq m".

The trust said that the acquisitions are expected to generate initial net property income yields of 10 per cent for the Vietnam property, and 8 per cent for the South Korean warehouse.