Mapletree Logistics Trust to divest South Korean property for S$7.4 million
The proposed divestment is in line with its manager’s drive to rejuvenate its portfolio by letting go of assets no longer aligned with its strategy
[SINGAPORE] Mapletree Logistics Trust (MLT) has entered into an agreement, through its wholly-owned subsidiary incorporated in South Korea, to divest Mapletree Logistics Centre-Yeoju for 8 billion won (S$7.4 million) to an unrelated third party.
The sale price is 1.3 per cent higher than the property’s valuation of 7.9 billion won as at Mar 31, and will be satisfied in cash, MLT’s manager said on Wednesday (Jul 30).
The property is in Yeoju, a city south-east of Seoul, and comprises a two-storey warehouse and a three-storey office building. It is just over 18 years old and has a gross floor area of 10,959 sq m.
The divestment is expected to be completed in the first quarter of FY25/26, with no material impact on MLT’s net asset value and net property income for the financial year. Following the divestment, MLT’s portfolio will consist of 175 properties.
The proposed divestment is in line with the trust manager’s efforts to “rejuvenate its portfolio through selective divestment of assets that are no longer aligned with its strategy”.
The manager said: “Capital released from the divestment will provide MLT with greater financial flexibility to pursue investment opportunities in high-specification, modern logistics facilities offering higher growth potential.”
Units of MLT closed S$0.01 or 0.8 per cent lower at S$1.19 on Wednesday, before the announcement.
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