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Friday, December 3, 2010

Mapletreelog acquires singapore property for S$16.8 million - 2 DEC 2010

Mapletreelog acquires singapore property for S$16.8 million.
Key Points
  • The Manager of MapletreeLog has signed a Put and Call Option Agreement today with JEP Precision Engineering Pte Ltd (the “Vendor”), to acquire its premises at 44 & 46 Changi South Street 1, Singapore (the “Property”) at a purchase price of S$16.8 million.
  • The Property comprises two connected single-storey air-conditioned warehouses and an ancillary office. Highly accessible from the Pan-Island Expressway and the East Coast Parkway, the Property is also a 5-minute drive from Changi International Airport.
  • The Vendor will lease back the Property for a period of 7 years with an option to extend for a further term of 7 years and rental escalation of 3.75% at the beginning of year 3, 5 and 7.
  • The acquisition provides an initial net property yield of 8.7% and the land lease has a balance of 26 years.
  • With the addition of this Property, MapletreeLog's total portfolio will increase to 95 properties and its total book value to approximately S$ 3,446 million. 
  • The acquisition is subject to approval by JTC and is expected to complete by December 2010. 
  • This is the third of the four potential acquisitions identified in the recent equity fund raising exercise announced on 21 September 2010 and will be funded from its net proceeds.
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