Mapletree Logistics Trust has entered a conditional deal to acquire an under-development logistics warehouse in Australia from Wooreddy Investments for A$18.4 million, or around S$17.4 million, the REIT said in a filing to SGX Tuesday.
The property, which will be a one-storey modern facility, will be built at 15 Boterro Place in Truganina, Melbourne, the filing said.
Truganina is among Australia’s fastest-growing industrial areas, with connectivity to the Port of Melbourne, Melbourne Airport, the central business district and interstate regions, Mapletree Logistics Trust said. It added major operators such as DHL, Toll and CEVA have a presence in the area.
The trust will acquire the property with vacant possession, and it will be responsible for leasing, the filing said. The trust estimated the stabilized net property yield at 6.3 percent.
The acquisition will be funded by debt, Mapletree Logistics Trust said.
The deal is expected to be settled in the third quarter of 2020, subjected to conditions which include completion of the warehouse, the filing said.
Wooreddy Investments is related to large private industrial builder Vaughan Constructions, the filing said.
