Mapletree Logistics Trust to sell 30 Woodlands Loop to Advanced CAE

Sale price is at S$15.5m.

In a release, Mapletree Logistics Trust Management Ltd., the manager of Mapletree Logistics Trust announced that HSBC Institutional Trust Services Limited has entered into an Option to Purchase Agreement with Advanced CAE Pte Ltd for the divestment of 30 Woodlands Loop in Singapore at a sale price of S$15.5 million. 

The sale price was arrived at through negotiations on a willing-buyer, willing-seller basis. JTC Corporation has granted inprinciple approval for the transaction subject to the parties complying with the stipulated conditions. 

The transaction is expected to be completed by May 2013. The divestment is in line with the Manager’s objective to optimise returns from the portfolio through proactive asset management efforts.

Capital released from the divestment will provide MLT with greater financial flexibility to pursue other attractive investment opportunities offering better yield.

In the interim, it will be used for MLT’s working capital. The Divestment Property was purchased in 2007 for S$10.3 million and valued at S$11.0 million in
March 2012.

A net disposal gain of approximately S$4.95 million is expected from this divestment which will be distributed to unitholders, subject to clarification with the Singapore tax authority on the tax treatment for the disposal gain.

Further announcement will be made when the final distributable amount has been determined. 

The divestment is expected to have minimal impact on MLT’s net asset value and net property income for FY13/14.