SINGAPORE - Mapletree Logistics Trust (MLT's) has acquired two logistics warehouses in China for 402.8 million yuan (S$83.9 million).
It bought Mapletree Yangshan Bonded Logistics Park, a grade-A logistics facility, in Shanghai for 197.2 million yuan.
In Zhenghou, it acquired Mapletree Zhengzhou Logistics Park for 205.6 million yuan.
The purchases, which were completed today, are in line with MLT's investment strategy to expand its presence in higher growth markets such as China.
Ms Ng Kiat, chief executive officer of the trust manager, noted that the Yangshan logistics facility is located in the newly established Shanghai Pilot Free Trade Zone.
"With its quality specifications and strategic location, it will allow us to participate in Shanghai's new growth potential," she added.
At an initial net property income yield of 7.5 per cent, the asset is expected to be accretive to distribution per unit.
The acquisitions are fully funded by debt.
Following the completion of the transactions today, MLT's aggregate leverage ratio has increased to about 35.2 per cent while total portfolio has risen to 115 properties with a book value of some S$4.39 billion.