Mapletree Logistics Trust (MLT) has acquired two properties, one in Japan for S$22.8 million (¥1.49 billion) and the other in Vietnam for US$6.4 million.
The purchase cost and other acquisition expenses were fully financed by debt, considering the relatively small size of the purchases, said MLT.
The property in Vietnam – Mapletree Logistics Centre – is the first property of the company in Vietnam.
The trust purchased the warehouse, which is located at the Vietnam Singapore Industrial Park in Binh Duong Province, from Mapletree Investments.
Vietnam is a “market of immense opportunities,” the trust said during its announcement of the acquisition.
“The (trust’s) manager sees Vietnam as an important key emerging market in Asia, with its competitive cost structure and burgeoning middle-class population, which presents attractive growth prospects,” according to a statement released by MLT.
“With growing demand for logistics space in Vietnam, the manager believes Vietnam will provide opportunities to our valued partners and tenants,” it added.
The other property – Sendai Centre – was also purchased from its sponsor Mapletree Investments. The warehouse is located in Sendai City in Miyagi Prefecture of Japan.
Sendai Centre recorded a net property income of 6.8 percent, higher than the five percent implied property yield of the trust’s present Japan portfolio.