Investor Presentation: Proposed Acquisition of Logistics Asset in Australia
August 13, 2021 at 12:32 pm
Share
Mapletree Logistics Trust
Proposed Acquisition of Logistics Asset in Australia 13 August 2021
Overview of Property
5-17 Leslie Road & 6-10 Pipe Road, Melbourne, Victoria, Australia
Purpose-builtcold storage facility comprising five blocks of cold and freezer warehouse (77% of NLA), ambient warehouse, office and other amenities
Located in inner west precinct of Melbourne, an established industrial and logistics region
Purchase
A$42.8 million
Price1
(S$42.8 million)
Valuation2
A$43.0 million
Land Tenure
Freehold
Land Area
30,313 sqm
NLA
14,747 sqm
100% leased to Austco Polar
Tenant
Cold Storage Pty Ltd, a wholly-
owned subsidiary of ASX-listed
Wingara AG Limited
Remaining
13.03 years
Lease Tenure
Notes:
1. Based on the exchange rate of A$1 = S$1.00
2.
Based on independent valuation by Knight Frank as at 21 June 2021 based on the capitalisation and discounted cash flow methods.
1
3.
As at 1 July 2021.
Investment Rationale
Established location with excellent connectivity
Located in inner west precinct of Melbourne, an established industrial and logistics region
Excellent connectivity to major arterial routes and in close proximity to the city centre (~13km) and the Port of Melbourne (~10km)
Robust cold storage sector
E-commerce,food and grocery sectors recorded strong growth in 2020, which in turn has supported robust demand for cold facilities
Australia's per capita cold storage stock in 2020 lags 3 to 4 times behind developed countries => there are no vacant cold storage warehouses (>5,000 sqm) across the country1
Established tenant with long lease tenure
100% leased to Austco Polar, a national and international red meat exporter
Remaining lease tenure of 13.02 years with built-in annual rental escalations
Acquisition is expected to be accretive with initial NPI yield of 4.3%
Acquisition will be funded by debt and is expected to be completed by 3Q FY21/22, subject to fulfilment of conditions precedent
Upon completion, MLT's aggregate leverage ratio will be approximately 38.7%3
Note:
Colliers Research, Australian Industrial & Logistics Market, March 2021
As at 1 July 2021.
Based on MLT's financials as at 30 June 2021, and including the proposed acquisition of 9 Changi South Street 2, Singapore as announced on 9 July 2021.
2
Strategic Location with Excellent Connectivity
The proposed acquisition is located within the west industrial precinct in the vicinity of MLT's four existing assets in Melbourne, close to the city center (~13km) and the Melbourne port (~10km)
The inner west precinct of Melbourne is an established industrial and logistics region that has attracted many major logistics players and food and grocery leaders
3
Impact on Portfolio
4
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 13 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2021 11:31:06 UTC.
Mapletree Logistics Trust is a Singapore-based real estate investment trust. The Company invests in a diversified portfolio of income-producing logistics real estate in Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia, Vietnam and India. Its properties are strategically located near to expressways and established logistics clusters in nine geographic markets across Asia Pacific. Its portfolio stands at 189 properties, comprising 49 properties in Singapore, 14 in Australia, 43 in China, nine in Hong Kong SAR, two in India, 24 in Japan, 15 in Malaysia, 21 in South Korea and 12 in Vietnam. Its properties include 114 Kurrajong Road & 9 Coventry Place, Mount Druitt, NSW; 15 Botero Place, Truganina; 213 Robinsons Road, Ravenhall, VIC; Acacia Ridge Distribution Centre; Chengdu DC Logistics Park; Mapletree (Cixi) Logistics Park; 119 Neythal Road, Mapletree (Chakan) Logistics Park 1, Mapletree Logistics Centre-Baekam 1, and Mapletree Logistics Centre, among others.