SINGAPORE: Mapletree Logistics Trust Management Ltd. (MLTM), as Manager of Mapletree Logistics Trust (MLT), announced the proposed acquisition of Acacia Ridge Distribution Centre located at 338 Bradman Street, Brisbane, Queensland, Australia, at a property purchase price of A$114 million (approximately S$109.8 million) from Alset Australian Mid TC Pty Ltd.
Following this Acquisition, MLT will have three properties in Brisbane and a total of 13 properties with over 347,287sqm of leasable space in Australia.
The Property is located in Acacia Ridge, an established industrial and logistics precinct in southern Brisbane that is well-connected to the Brisbane city centre, Acacia Ridge Rail Yard, Brisbane Airport and the Port of Brisbane.
Given its proximity to the city and convenient access to key transportation infrastructure, the Acacia Ridge precinct has attracted many Australian and multinational corporations to set up distribution centres within the precinct.
Furthermore, the location is well-poised to benefit from the government’s committed investments in several major infrastructure developments, in particular, the high-capacity inland freight rail connecting Melbourne and Brisbane.
The A$8.4 billion project, due to be fully operational in 2026, is expected to increase rail freight between Melbourne and Brisbane and boost demand for warehouse space in the precinct.
Demand for logistics space in Brisbane is underpinned by several structural demand drivers, including a fast growing e-commerce sector and resilient domestic consumption.
In Queensland, e-commerce logistics distribution and warehousing has shown strong growth of 5.2% annually3,the highest of any state nationally. The COVID-19 pandemic has also spurred a major uptick in online shopping, particularly in the food, beverage and grocery sector.
Consequently, surging sales of major supermarket players as well as consumer demand for fast delivery are translating to higher demand for prime logistics space with good connectivity.
The Acquisition will be funded by debt and is expected to be accretive at the distribution level. Upon completion, MLT’s aggregate leverage ratio is projected to be approximately 37.4%.
MLT, the first Asia-focused logistics REIT in Singapore, was listed on the SGX-ST main board on 28July 2005. MLT’s principal strategy is to invest in a diversified portfolio of income-producing logistics real estate and real estate-related assets.
As at 30 September 2020, it has a portfolio of 146 properties, comprising 52 properties in Singapore, 9 in Hong Kong SAR, 17 in Japan, 11 in Australia, 13 in South Korea, 23 in China (50% interest in 15 properties), 15 in Malaysia and 6 in Vietnam, with assets under management of S$8.96 billion.
MLT is managed by Mapletree Logistics Trust Management Ltd., a wholly-owned subsidiary of Mapletree Investments Pte Ltd. www.mapletreelogisticstrust.com
