Mapletree Logistics Trust proposes acquiring Brisbane logistics property for A$105 million

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Mapletree Logistics Trust said on Friday that it proposed acquiring the Coles Distribution Centre in Brisbane, Australia, for A$105.0 million, or around S$102.2 million.

The property, which would be MLT’s 10th in Australia, is entirely leased to Coles Supermarkets, the second-largest supermarket chain in Australia, through January 2023 with a remaining lease terms of 4.3 years, with the facility used to support the comany’s operations in Queensland and northern New South Wales, it said.

The initial net property income yield is expected to be 5.7 percent, and the acquisition is expected to be accretive, it said.

The acquisition would be via the purchase of all of the units of the property trust from an unrelated third party, it said.

Mapletree Logistics Trust will fund the deal with a combination of the divestment proceeds from 531 Bukit Batok Street 23 in Singapore, cash retained from the distribution reinvestment plan (DRP) and debt.

The warehouse facility has a gross floor area of 55,739 square meter, sited on 151,600 square meters with expansion land which could yield additional gross floor area of up to 19,000 square meters, it said.

After the acquisition, Mapletree Logistics Trust will have 139 properties under management, it said.