Mapletree Logistics Trust
Proposed Acquisition of Two Modern Logistics Properties in India
17 March 2021
Purchase Consideration
INR 4,550 million (S$84.2 million1)
Overview of the Proposed Acquisition
Net Property Income ("NPI") Yield
7.4%
Net Lettable Area
("NLA")
87,256 sq m
Occupancy
98.2%2
Description
Agreed Property Value (INR million)
Valuation4 (INR million)
NLA
Remaining Land Tenure3
Occupancy
74,161 13,095
Plot No.5, Chakan MIDC Area Phase - II,
Village Khalumbre, Taluka Khed, District Pune ("Chakan MIDC")
4 blocks, single-storey ambient warehouse
Notes:
1) Based on exchange rate of INR54.05 = S$1
2) Weighted by NLA.
3) As at 3 March 2021.
Plot No. P-12, Talegaon Floriculture and Industrial Park, MIDC Talegaon, Village Navlakh Umbre, Taluka Maval, District
Pune ("Talegaon MIDC")
2 blocks, single-storey ambient warehouse
4,050 500
4,179 548
88 years 100%
86 years
88%
4) Based on independent valuations conducted by Savills Property Services (India) Pvt. Ltd. as at 2 March 2021. The Valuer has valued the Properties based on the discounted cash flow method and income capitalisation method.
Weighted Average Lease Expiry by revenue
("WALE")
2.2 years3
Entry into India, an attractive logistics market
Increasing urbanisation coupled with a growing middle class is expected to support rising consumption levels which drives demand for modern logistics space
E-commerce growth, accelerated by the COVID-19 pandemic, provides new source of demand for high quality warehousing facilities in prime locations
India is a beneficiary of the "China Plus" supply chain diversification strategy adopted by manufacturers
Supply of Grade A logistics space in India remains low, thus supporting occupancy1
Strategic locations in key logistics hub with excellent connectivity
Pune is an important warehousing centre in India with demand driven largely by e-commerce, third-party logistics as well as manufacturing
Properties are located within the Pune Metropolitan Region, an established zone for high-tech engineering and automobile industries, with strong growth in industrial activities
Well connected to major cities and transportation infrastructure such as the Mumbai Metropolitan Region, Pune city centre, Pune Airport and Jawaharlal Nehru Port, via the Mumbai-Pune Expressway
Notes:
1. Knight Frank, "India Warehousing Market Report 2020".
Quality logistics facilities
Purpose-built with modern logistics specifications, including height clearance of 8.5m to 9m and floor loading of 6 tonnes/psm to 8 tonnes/psm
Leased to mostly multinational corporations such as Kawasaki and Hyundai with WALE of 2.2 years and built-in annual escalations
Acquisition is expected to be accretive with NPI yield of 7.4%
Acquisition will be funded by debt and is expected to be completed by the second calendar quarter of 2021, subject to fulfilment of the relevant conditions precedent
Upon completion, MLT's aggregate leverage ratio is projected to be approximately 40.1%1
Notes:
1. Based on MLT's financials as at 31 December 2020 and also taking into account the proposed acquisition of Mapletree Logistics Hub -Tanjung Pelepas announced on 19 October 2020 and the proposed acquisition of interests in a portfolio of five logistics properties in South Korea announced on 15 February 2021, with both acquisitions pending completion.
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Mapletree Logistics Trust published this content on 17 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 March 2021 10:33:09 UTC.