SINGAPORE - Mapletree Logistics Trust (MLT) is proposing the acquisition of a portfolio of four logistics properties in Victoria, Australia, for A$142.2 million (S$151.9 million).
A sale and purchase agreement was signed on Thursday (Dec 15) between HSBC Institutional Trust Services (Singapore) Ltd, acting as trustee of MLT, through VIC Assets Trust, an indirect wholly-owned sub-trust, and Growthpoint Properties Australia Ltd, MLT said in a filing with the Singapore Exchange.
The four properties have a total gross floor area of approximately 103,517 square metres on a combined land area of 362,230 sqm. They are 100 per cent leased to established Australian companies and multinational corporations.
With a combined weighted average lease expiry of 6.4 years and annual rent escalations, the acquisition is expected to benefit unitholders by providing a stable income stream with organic growth, said MLT.
It is expected to generate an initial net property income yield of approximately 7.6 per cent, while the pro forma financial impact on the trust's distribution per unit for the 12 months ended March 31, 2016, would be approximately 0.13 Singapore cents, said MLT.
The acquisition will be MLT's third investment in Australia and will increase its portfolio to nine properties in the country. It will raise MLT's exposure to Australia from 6.1 per cent to 9 per cent of its gross revenue base.
MLT said the acquisition will be funded by a combination of the remaining proceeds from the S$250 million perpetual securities issued in May 2016; and Australian dollar denominated debt facilities.
Upon its completion, expected to be by December 2016, the MLT's aggregate leverage ratio will increase from 37.6 per cent to 39.4 per cent.