Mapletree Logistics Trust to acquire properties in Vietnam and Malaysia

Mapletree Logistics Trust Management Ltd., as manager of Mapletree Logistics Trust (MLT) announced on February 29 the proposed acquisition of logistics properties located in Malaysia and in Vietnam.

The agreed property values of the single Malaysian and two Vietnamese properties are $117.3 million and $52 million, respectively. The valuations represent discounts of approximately 0.2 per cent and 1.1 per cent from the independent valuations obtained by HSBC Institutional Trust Services (Singapore) Limited, as trustee of MLT, and Mapletree Logistics Trust Management, respectively.

Ng Kiat, CEO of Mapletree Logistics Trust Management, said, “Stepping up our portfolio rejuvenation efforts, we have announced or completed over S$200 million ($148.5 million) of divestment since the start of the year, thereby releasing capital which can be redeployed towards acquisitions in Kuala Lumpur, Ho Chi Minh City and Hanoi to capture emerging Asia’s growth potential. At the same time, developed Asian markets, which account for the majority of our revenue base, continue to provide stability to MLT’s portfolio.”

The proposed acquisitions are in line with the MLT’s strategy of active portfolio rejuvenation through accretive acquisitions of modern, well-located properties in key logistical hubs. This strategy is complemented by selective divestment of properties with older specifications, which enable the redeployment of capital towards investments in modern logistics properties with higher growth potential.

Comprising three strategically located Grade A warehouses in Malaysia and Vietnam, these acquisitions will deepen MLT’s network connectivity in these growth markets and position the company to capitalise on favourable demand drivers for logistics space, such as growing consumption and greater focus on supply chain diversification.

The acquisitions will increase the firm’s exposure in Malaysia and Vietnam, from 24 assets to 27 assets, where robust economic growth and increasing urbanisation are expected to boost consumption and underpin demand for logistics space.

MLT’s acquisitions of three modern, Grade A logistics facilities position the company to meet the evolving demands of tenants, while capturing the rent premiums commanded by modern warehouses over traditional facilities.

Specifically, the Vietnamese properties comprise a logistics asset in Binh Duong province (Mapletree Logistics Park 3) and a logistics asset in Hung Yen province (Hung Yen Logistics Park I). The Malaysian property is located in Shah Alam, one of Malaysia’s major industrial regions, with proximity to Kuala Lumpur City Centre and Port Klang.

Vietnam Investment Review