Mapletree Logistics Trust said on Wednesday it sold five properties in Japan to Godo Kaisha T&C for 17.52 billion yen, or around S$213.3 million in cash.
“After evaluating all viable options and taking into consideration the properties’ older warehouse building specifications, limited future income growth and lack of redevelopment potential, the manager assessed that divesting the properties at the offered price would be desirable,” the trust said in a filing to SGX after the market close on Wednesday.
“Capital released from the divestment will improve MLT’s financial flexibility to pursue investments of higher quality assets,” the trust added.
The net proceeds may be used to fund committed investments, reducing existing debt and/or other general corporate purposes, MLT said.
The properties were mainly two- and three-storey warehouses with cargo lifts and were located in Saitama and Kanagawa, the filing said.
The sale price was 21 percent above the properties’ latest appraised valuation of 14.427 billion yen, or around S$175.7 million, from Colliers International Japan KK, the filing said, adding the original purchase cost was 15.506 billion yen.
The divestment was completed on Wednesday and full payment has been received, MLT said.
Following the divestment, the trust’s portfolio has 137 properties, comprising 52 in Singapore, nine in Hong Kong, 16 in Japan, 10 in Australia, 12 in South Korea, 20 in China, 14 in Malaysia and four in Vietnam, the filing said.