Mapletreelog signs sale & leaseback agreement with Hamakyorex for Distribution Centre worth JPY 1.05 billion

Mapletreelog signs sale & leaseback agreement with Hamakyorex for Distribution Centre worth JPY 1.05 billion. See:

• Press Release
• Presentation Slides 

Key Points

• Mapletreelog has signed a sale and purchase agreement to acquire Toki Logistics Centre, a warehouse facility in Japan, for JPY 1.05 billion (approximately S$ 16.2 million) from Hamakyorex Co., Ltd, a reputable third-party logistics company (“3PL”) in Japan. 
• This acquisition provides an attractive and accretive yield of 8.6% which is comparatively higher than the implied property yield of the existing Japan portfolio which is at about 5.5%.
• The vendor, Hamakyorex, will enter into a 10-year lease agreement with MapletreeLog.
• With the addition of this acquisition, MapletreeLog’s total portfolio will increase to 92 properties and the book value of the asset portfolio would be approximately $3.4 billion upon completion of this transaction. 
• The acquisition is expected to be completed by 4Q 2010.
• With respect to funding, this Acquisition is one of the potential acquisitions identified in the recent Equity Fund Raising exercise that was launched on 21 September 2010. As such, this Acquisition will be funded with the EFR proceeds.

Related News

• MapletreeLog's Launch of Equity Fund Raising to raise approximately S$300 million in Capital to Fuel Growth - 21 SEP 2010