Mapletree Logistics Trust to snap up four Sydney properties for $84m

It will be funded by the $250m proceeds from perpetual securities.

The commercial property firm is poised to deepen its footprint in Sydney as it plans to acquire four properties with a combined GFA of 52,907 sqm.

According to a report by OCBC, the properties are 100% leased to seven tenants which are established local enterprises from different industry sectors serving the domestic Australian economy.

“This proposed acquisition would boost MLT’s presence in Sydney to five assets and increase its gross revenue contribution from Australia to ~6.1% from 4.3%, thus also adding some diversification to its income streams,” the report said.

Meanwhile, the deal will be funded by proceeds raised from MLT’s recent issuance of $250m of perpetual securities.

“Hence MLT’s aggregate leverage is estimated to decrease from 39.6% (as at 31 Mar 2016) to ~36% post completion, which is expected in Jul 2016, subject to receipt of approval from the Australian Foreign Investment Review Board,” the report said.