Skip to main content

Mapletree Logistics Trust plans $272.5m acquisition of Japan facility

SINGAPORE (THE BUSINESS TIMES) – Mapletree Logistics Trust (MLT) is looking to acquire an effective interest of 98.47 per cent in a freehold logistics property in Kobe, Japan, for some 22.2 billion yen (S$272.5 million), its manager said on Tuesday morning (Jan 28).

The property – Mapletree Kobe Logistics Centre – is a four-storey logistics facility located in an established logistics cluster in the city. It has Grade A specifications and is 99.7 per cent occupied by seven tenants.

The property has an agreed value of 22.2 billion yen, which took into acount two independent valuations of the property as at Dec 1, and the highest bid in a competitive bid process.

The manager intends to fully fund the proposed acquisition through a drawdown of Japanese yen debt facilities and an issuance of onshore Japanese yen bonds, as well as through issuing acquisition fee units.

The total cost of the proposed acquisition is estimated to be around $272.5 million, comprising the effective consideration of 21.86 billion yen, and a $1.3 million acquisition fee payable in units to MLT’s manager. It also includes estimated professional and other fees and expenses of around $2.9 million, and the drawdown of Japanese yen debt facilities and the issuance of onshore Japanese yen bonds.

MLT’s indirectly owned subsidiary Sazanka Tokutei Mokuteki Kaisha (TMK) has entered into a conditional trust beneficial interest sale and purchase agreement with Ajisai TMK – an associate of MLT sponsor Mapletree Investments.

Ajisai TMK is indirectly held by private real estate closed-end fund MJLD through a TMK – a common structure adopted for investment in real estate under Japanese law. MJLD is in turn managed by MIJ with Mapletree Real Estate Advisors as the investment adviser – both indirectly owned by Mapletree Investments.

As the transaction constitutes an interested party transaction, unitholders’ approval is required. As at Jan 21, Mapletree Investments owns around 30.34 per cent of MLT’s issued units and is considered a controlling unitholder. It also wholly owns MLT’s manager.

The manager said the proposed acquisition will increase its exposure to Japan. It will extend MLT’s footprint to western Japan and deepen its network connectivity in the country. The proposed acquisition is also in line with the manager’s strategy to rejuvenate MLT’s portfolio through selective divestments of older assets and the redeployment of capital into investments of modern facilities with higher growth potential.

MLT’s manager has appointed Ernst & Young Corporate Finance as an independent financial adviser to evaluate the deal terms. The independent directors, and the audit and risk committee will form their views after reviewing the opinion of the independent financial adviser. These views will be set out in the unitholder’s circular.

Source: Read Full Article


Popular posts from this blog

Google accused of creating 'creepy' spy tool to squelch worker dissent

Google workers are accusing the company of developing an internal surveillance tool that they believe will be used to monitor their attempts to organise protests and discuss labour rights.Earlier this month, employees said they discovered that a team within the company was creating the new tool for the custom Google Chrome browser installed on all workers' computers and used to search internal systems. The concerns were outlined in a memo written by a Google employee and reviewed by Bloomberg News, and by three Google employees who requested anonymity because they aren't authorised to talk to the press.The tool would automatically report staffers who create a calendar event with more than 10 rooms or 100 participants, according to the employee memo. The most likely explanation, the memo alleged, "is that this is an attempt of leadership to immediately learn about any workers organisation attempts."Google is using the new software tool to police its own workers amid r…

At Least 23 People Dead in Australia Bushfires As Blazes Continue Raging

SYDNEY (AP) — A father and son who were battling flames for two days are the latest victims of the worst wildfire season in Australian history, and the path of destruction widened in at least three states Saturday due to strong winds and high temperatures.The death toll in the wildfire crisis is now up to 23 people, Prime Minister Scott Morrison said after calling up about 3,000 reservists to battle the escalating fires, which are expected to be particularly fierce throughout the weekend.“We are facing another extremely difficult next 24 hours,” Morrison said at a televised news conference. “In recent times, particularly over the course of the balance of this week, we have seen this disaster escalate to an entirely new level.”Dick Lang, a 78-year-old acclaimed bush pilot and outback safari operator, and his 43-year-old son, Clayton, were identified by Australian authorities after their bodies were found Saturday on a highway on Kangaroo Island. Their family said their losses left them…

It will take 100 years for women to earn the same as men at this rate

The wage gap between men and women is 20%, meaning women get paid 80 cents to every $1 men earn, according to a recent study.The pay gap narrowed about 2% in the last ten years. If things don't improve, it will take a century for women to reach equal pay, according to Goldman Sachs.The firm said at least part of the unexplained gap could be due to the lack of women in highly-paid senior roles, despite being on average more educated than men.It could take a century for women to be paid as much as men, if things stay as they are now.The wage gap between men and women is 20%, meaning women get paid 80 cents for every $1 men earn. In the last ten years, the pay gap only narrowed about 2%, and if performance stays consist with the past decade's, it would take 100 years to reach equal pay, according to Goldman Sachs."The latest data show there's more work to do," said Amanda Hindlian, global COO of global investment research at Goldman Sachs in a note titled "Clos…