Mapletree Logistics Trust has entered a deal to acquire two leasehold land plots for industrial properties in Subang Jaya, Selangor, Malaysia, for a total of 65.6 million ringgit, or around S$21 million, the trust said in a filing to SGX Tuesday.
“The proposed acquisition offers a rare redevelopment opportunity for MLT to amalgamate the property with our existing adjacent properties Subang 3 and 4 for the development of the first modern ramp-up warehouse in Subang Jaya,” Ng Kiat, CEO of the trust’s manager, said in the statement.
“This is in line with our strategy to optimise MLT’s portfolio and future-proof our assets through asset rejuvenation,” she added.
The deal, which is expected to be completed by September, will be fully funded by debt, the trust said.
Subang Jaya is an established industrial and logistics area in the Klang Valley, connected to the Kuala Lumpur city center and Port Klang, the filing said, adding the location is strategic due to its proximity to densely populated areas of Subang, Petaling Jaya, Damansara and Puchong.
That makes it suitable as an alternative distribution center location an as a last-mile delivery center for e-commerce operations, Mapletree Logistics Trust said.
Until the development is completed, expected by 2027, the property isn’t expected to generate any income, the trust said.
The property’s valuation, conducted by First Pacific Valuers Property Consultants, is at 67.9 million ringgit as of 24 January, the trust said.