Mapletree Logistics Trust entered a deal to acquire a warehouse in Vietnam-Singapore Industrial Park I, Binh Duong province, in Vietnam, for 725.1 billion Vietnamese dong, or around S$43.0 million, from Unilever International Co., the trust manager said on Thursday.
After the acquisition is completed, the property will be leased to Unilever Vietnam for 10 years, with annual rent escalations, it said in a filing to SGX after the market close on Thursday.
The acquisition is expected to have an initial net property income yield of 8.3 percent and to be accretive at the distribution level, the trust’s manager said. The property was valued at 730.0 billion dong by Cushman & Wakefield as of mid-May 2018, it said.
The deal will be funded by debt and it is expected to be completed by the fiscal fourth quarter, it said.
“We are pleased to welcome Unilever, a global leader in fast moving consumer products, to our tenant network,” Ng Kiat, CEO of Mapletree Logistics Trust’s manager, Mapletree Logistics Trust Management (MLTM), said in the statement.
“The addition of this well-located Grade A facility, our fourth property in Vietnam, will also enhance our ability to tap the rising demand for quality logistics facilities in one of the fastest growing markets with strong domestic consumption,” she added.
Mapletree Logistics Trust said the property was in Binh Duong province, which is southern Vietnam’s largest logistics hub and a manufacturing hub.
As of 18 October, the trust has a portfolio of 138 logistics assets across Singapore, Hong Kong, Japan, China, South Korea, Australia, Malaysia and Vietnam, the filing said.