Mapletree Logistics Trust acquires South Korea facility for $154m

This is expected to raise MLT's e-commerce revenue exposure in S. Korea to 31%.

Mapletree Logistics Trust Management Ltd. announced that Mapletree Logistics Trust acquired the Yeoju Logistics Center in South Korea for around $154m (KRW135b).

The property spans over 70,400 square metres (sqm) in total gross area on around 56,200 sqm of freehold land. Two blocks of three-storey dry warehouses compose the area and were completed in 2019. 

Included in the property are high-quality building specifications such as strong floor loading of over 20 kilo-newton per sqm, high floor-to-ceiling height of 10 to 17 meters, large floor plates of up to 14,200 sqm and a full sprinkler system. 

Direct ramp access to the upper floors and spacious docking yard is also a part of the property.

The property was independently valued by MatePlus Appraisal at $159.52m (KRW 139.6b) as of 2 September. 

The hub is located in northern Yeoju, northeast of the Yogin-Incheon market. Access to Gwangju-Wonju Expressway and National Road #3 is readily available as well.

The acquisition is expected to raise MLT’s e-commerce revenue exposure in South Korea from 24% to 31%. A weighted average lease expiry of approximately 3.1 years will provide MLT with a stable and growing income stream. 

Transaction-related costs are expected to be around $9.8m (KRW 8.6b). This includes the acquisition fee of $1.5m (KRW 1.35b). An estimated net property income yield of 4.2% is expected to MLT’s distribution per unit. The aggregate gearing ratio is expected to hover around 40.3%.