THE trustee of Mapletree Logistics Trust (MLT), HSBC Institutional Trust Services (Singapore), has entered into an option to divest the trust’s property at Tai Seng Drive for S$68 million.
The property, purchased in 2006 for S$38 million, is a seven-storey warehouse. Situated on a land area of 8,968 sq m, it has a gross floor area of 23,844 sq m.
As at March 31, 2017, the property was valued at S$31.8 million.
Ng Kiat, chief executive of manager Mapletree Logistics Trust Management, said: “As part of our continuing efforts to improve the quality and yield of MLT’s portfolio, we are looking to divest 7 Tai Seng Drive, a 20-year old building with older warehouse specifications and limited scope for future enhancement. The capital released will increase our financial flexibility to invest in better quality assets with modern specifications.”
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The manager plans to distribute any divestment gain from the transaction to unitholders, after taking into account costs and expenses, while the capital released may be used to fund committed investments and/or reduce debt.
A divestment fee of 0.5 per cent is payable to the manager, and will be paid in MLT units.
The proposed divestment is expected to be completed by the fourth quarter of FY17/18.
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