Mapletree Logistics Trust acquires $25.2m Smart Logistics Centre in Korea

It is the firm’s 10th warehouse in the country.

Mapletree Logistics Trust (MLT) continued on its acquisition growth path with the acquisition of Smart Logistics Centre in Korea for KRW21.bbn (S$25.2m).

According to DBS, the target property is a freehold three-storey Grade A dry ramp-up warehouse located within Fashion Forest, a prime fashion distribution park in Gyeonggi province, near Seoul. This represents MLT’s tenth warehouse in Korea (accounting c.8.9% of revenues post acquisition). 

DBS adds that the acquisition price implies an initial yield of 7.8% and is earnings accretive. Smart Logistics Center is fully leased to Smart Logistics and Smart Global, two established Korean logistics operators whose customers are mainly in the fashion and apparel industries and are related companies of the Vendor. The leases have a weighted average lease expiry (WALE) of 4.7 years with annual escalations. Given the relative small acquisition size, MLT will fund the acquisition through debt. Gearing should remain within management’s comfortable range of <40%.