The moves are in line with its continued portfolio rejuvenation efforts, says its manager
[SINGAPORE] Mapletree Logistics Trust (MLT) has entered into agreements for the divestment of two China warehouses for a total of 724 million Chinese yuan (US$107 million).
It is also divesting a property in Singapore at 39 Changi South Avenue 2 for S$16.6 million.
The trust’s manager announced the proposed divestments in separate bourse filings on Wednesday (Jul 22). These are in line with continued portfolio rejuvenation efforts, it said.
In the China agreements, two of MLT’s wholly owned subsidiaries entered into deals to divest the 100 per cent equity interest in two entities – holding two ambient warehouse properties – to a new renminbi fund (RMB fund) led by Mapletree Investments, MLT’s sponsor.
This would be at an agreed property value of 180 million yuan for Mapletree (Wuxi) Logistics Park, and 544 million yuan for Mapletree Wuxi New District Logistics Park.
Mapletree (Wuxi) Logistics Park comprises three blocks of single-storey warehouses; Mapletree Wuxi New District Logistics Park consists of four blocks of two-storey ramp-up warehouses.
The sale consideration will be based on the Chinese entities’ adjusted net asset values, taking into account the agreed property values and intercompany loans, the manager said.
The agreed property values are above the respective valuations as at Mar 31, 2026, provided by two valuers, after independent valuations obtained to ensure that the transactions are carried out on an arm’s length basis, the manager said.
It added that the audit and risk committee of the manager approved the transaction, and confirms that the terms of the proposed divestment to the RMB fund are generally in line with that which would have been obtained had the assets been sold to a non-interested party.
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The manager’s CEO Jean Kam said: “Through the RMB fund, we can unlock value from mature assets and enhance our financial flexibility to pursue new value-accretive investment opportunities.”
As for the Changi South property, a three-storey cargo lift warehouse with an ancillary office, the buyer is CS Ceramiche, an indirect wholly owned subsidiary of Indigo Star Holdings (ISHL), which is listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong.
The S$16.6 million sale price is 20 per cent above its latest valuation of S$13.8 million as at Mar 31, the manager said.
The transaction is conditional upon, among others, approval by ISHL shareholders at an extraordinary general meeting to be convened, it said, adding that JTC Corporation has granted consent for the transaction, subject to the parties complying with the stipulated conditions.
The property has “limited potential for redevelopment into a modern, ramp-up logistics facility” given its relatively small land area, the manager said.
Noting that the proposed divestment is in line with its portfolio rejuvenation “through selective divestments of assets that are no longer aligned with its strategy”, the manager said that the capital released will give MLT more financial flexibility to pursue investment opportunities in modern assets that enhance the quality and resilience of its portfolio.
The proposed divestment of the Changi South property is expected to be completed by the third quarter of FY2027.
Both the China and Singapore divestments are not expected to have a material impact on MLT’s net asset value and net property income for FY2027. Following these moves, MLT’s portfolio will consist of 172 properties.
Units of MLT closed at S$1.20 on Wednesday, down S$0.01 or 0.8 per cent, before the announcement.
