Mapletree Logistics shells out S$32m in Korean property

It has a total gross floor area of 27,000 sqm.

In a release, Mapletree Logistics Trust Management Ltd., as Manager of Mapletree Logistics Trust, announced that a sale and purchase agreement has been entered into with Oakline Co. Ltd.  for the acquisition of The Box Centre in South Korea for a purchase consideration of KRW28.75 billion (approximately S$32.0million). 

The Property is located in Gyeonggi-do, approximately 60 kilometres from Seoul. Widely recognised as the largest logistics cluster in South Korea where around 70% of its warehouses and distribution centres are sited, Gyeonggi-do is sought after by third party logistics providers and distributors due to its good accessibility.

It is well served by major highways such as the Jungbu and Youngdong expressways and is in close proximity to the West Icheon Interchange and Deokpyung Interchange. These provide excellent connectivity to other parts of South Korea, including the Greater Seoul Metropolitan Area.

Completed in March 2012, the Property is a modern warehouse facility with a total gross floor area of approximately 27,000 square metres. Comprising a 3-storey dry warehouse with a gross floor area of 24,071 sqm and an ancillary office block, the facility has a floor loading capacity of 15 kN/sqm and floor-to-ceiling height of 9.8 metres. In addition, it is designed with enhanced features such as direct ramp access to all floors and dual-layer walls to minimize dew condensation.

The vendor of the Property, Oakline, is a supply chain management company in South Korea engaged in the businesses of storage and distribution of spirits and wine and document storage.

This will be MLT’s second transaction with Oakline, following its purchase of Yeoju Centre from Oakline in 2008. Oakline will lease back the Property for a period of six years with built-in rental escalation from the second year onwards. The key sub-tenants include Hyundai Logis, a major logistics company in South Korea, and The Box, a subsidiary of Oakline.