Mapletree Logistics to buy South Korean logistics centre for $46.4m

It comprises two warehouse blocks with a total floor area of 29,325sqm.

Mapletree Logistics Trust plans to buy Wonjin Logistics Centre in South Korea for $46.4m (KRW37.85b). This will raise its portfolio size in South Korea to 12 properties with over 350,000 sqm of leasable space.

According to an announcement, the property comprises two blocks of multi-tenanted dry warehouses with a total gross floor area (GFA) of about 29,325sqm and a land area of 31,055sqm. It is located in Gyeonggi-do, a province surrounding Seoul with 25 million inhabitants and also the largest logistics cluster in South Korea.

Developed over two phases (Block A and Block B) in 2007 and 2018, the Property has floor-to-ceiling height of 9.5 metres and floor loading capacity of up to 3 tonne/sqm. Block A, with a GFA of about 21,065 sqm, is designed with cross-docks. Block B, with 8,260 sqm of GFA, is designed with enhanced features such as direct ramp access to all floors as well as dual-layer walls to minimise dew condensation.

The property is within a one-hour drive from Seoul and is connected to the other parts of South Korea via major highways such as Yeongdong expressway and National Route 17. It is fully leased to three established 3PLs with a weighted average lease expiry of 4.3 years (by net lettable area).

Wonjin Logistics, which will leaseback over 60% of the property’s GFA, is a local 3PL and its major customers include well-known corporations such as Lotte, Amore Pacific, and Carrier. The remaining space is leased to an undisclosed large logistics companies in South Korea as well as a 3PL growing in Asia, especially in the fashion industry.

Upon the completion of the acquisition, MLT’s aggregate leverage ratio will be approximately 39.2%, whilst MLT’s total portfolio will comprise 141 properties with a book value of approximately $7.8b.