MapletreeLog acquires Iljuk Gyeonggi Centre in South Korea

MapletreeLog acquires Iljuk Gyeonggi Centre in South Korea:

• Press Release
• Announcements

Key Points

• Mapletree Logistics Trust Management Ltd. (“MLTM”), as Manager of Mapletree Logistics Trust (“MapletreeLog”), is pleased to announce the acquisition of Iljuk Gyeonggi Centre in South Korea (the “Property”) from Iljuk Gyeonggi Logistics Co. Ltd (“Vendor”) for a consideration of KRW 22 billion (approximately S$25.5 million).
• The Property is located in Gyeonggi-do, approximately 60 km from Seoul. 
• The Property comprises two blocks of 3-storey dry warehouses with a total gross floor area of about 23,400 sqm. 
• At the purchase consideration of KRW 22 billion, the Property provides an initial NPI yield of 9.3%. 
• The Property is leased to Seol Logistics Co. Ltd (“SEOL”) under a master head lease for 5 years with built-in rental escalation of 3.5% per annum. SEOL provides logistics services, including leasing of space to its customers. Its customer base includes well-established listed entities in South Korea such as S1 Corporation (a security solutions company) and Amore Pacific Corporation (a cosmetics company).
• Assuming that the acquisition is fully funded by debt, MapletreeLog’s gearing level is expected to increase to approximately 40%. 
• The acquisition is expected to complete by 2Q 2011. 
• Upon completion, MapletreeLog’s total portfolio will increase to 97 properties with total book value of S$3,609 million.

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