Mapletree Logistics Trust - Proposed Acquisition of Logistics Asset in Australia 13 August 2021
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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
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
Cold Storage Pty Ltd, a wholly-
Tenant
owned subsidiary of ASX-listed
Purpose-built cold storage facility comprising
Wingara AG Limited
five blocks of cold and freezer warehouse
(77% of NLA), ambient warehouse, office and
other amenities
Remaining
Located in inner west precinct of Melbourne, 13.03 years
Lease Tenure
an established industrial and logistics region
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.
3. As at 1 July 2021. 1
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:
1. Colliers Research, Australian Industrial & Logistics Market, March 2021
2. As at 1 July 2021.
3. 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
Top 10 Customer Profile (by Gross Revenue)
No change to MLT’s top 10 customers
7.2% 7.2%
3.6% 3.6%
3.3% 3.3%
2.3% 2.3%
1.9% 1.9% 1.9% 1.9%
1.4% 1.4%
1.4% 1.4% 1.3% 1.3% 1.3% 1.3%
CWT Coles Group Equinix JD.com, Inc. Cainiao Woolworths SBS Holdings TE Logis Co., XPO Nippon
Ltd. Worldwide Access Group
Logistics
1
Existing portfolio Enlarged Portfolio
Note:
1) As at 30 June 2021.
5
Geographical Diversification
1.8% 0.8%
1.8%0.8%
4.7% 4.7%
(As at 30 Jun 2021)
8.0% 23.3% 8.5% 23.2%
Management by
Singapore
Assets under
Geography
8.6% 8.5%
Existing Hong Kong SAR
Enlarged
Portfolio Portfolio
11.2% 11.1% China
24.7% 24.6%
16.9% Japan
16.8%
South Korea
2.9% 1.3% 2.9% 1.3% Australia
5.4% 5.3% Malaysia
7.4% 29.4% 8.5% 29.0%
Gross Revenue
by Geography
Vietnam
(1Q FY21/22)
7.7% Existing 7.6% Enlarged
Portfolio India
Portfolio
10.0% 9.9%
17.2% 17.0%
18.7% 18.5%
6
Lease Expiry Profile (by NLA)
Weighted average lease expiry (by NLA) remains at 3.8 years
Existing Portfolio1
Single-User Assets Multi-Tenanted Buildings
13.1%
19.2%
20.9%
13.1%
6.5% 14.2%
6.7%
1.0% 2.4% 2.9%
FY21/22 FY22/23 FY23/24 FY24/25 >FY24/25
Enlarged Portfolio
13.0%
19.2%
20.8%
13.1%
6.5% 14.4%
6.7%
1.0% 2.4% 2.9%
FY21/22 FY22/23 FY23/24 FY24/25 >FY24/25
Note:
1) As at 30 June 2021. 7
Remaining Years to Expiry of Underlying Land Lease
(by NLA)
Weighted average lease term to expiry of underlying leasehold land (excluding freehold land) is 44.3
years
38.1% 38.0%
21.0% 21.0%
18.0% 17.9%
9.1% 9.0% 8.5% 8.7%
5.3% 5.3%
0.0% 0.0%
0 - 20 yrs 21 - 30 yrs 31 - 40 yrs 41 - 50 yrs 51 - 60 yrs > 60 yrs (excluding Freehold
freehold land)
Existing Portfolio 1 Enlarged Portfolio
Note:
1) As at 30 June 2021.
8Disclaimer
The value of units in Mapletree Logistics Trust (“MLT”, and units in MLT, “Units”) and the income from them may fall as well as rise. Units are
not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks,
including the possible loss of the principal amount invested. Investors have no right to request the Manager to redeem their Units while the
Units are listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST
does not guarantee a liquid market for the Units. The past performance of MLT is not necessarily indicative of its future performance.
This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may
differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions.
Representatives examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of
capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating
expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes and the continued
availability of financing in the amounts and the terms necessary to support future business. In addition, any discrepancies in the tables, graphs
and charts between the listed amounts and totals thereof are due to rounding. Figures shown as totals in tables, graphs and charts may not be
an arithmetic aggregation of the figures that precede them. You are cautioned not to place undue reliance on these forward looking
statements, which are based on current view of management on future events.
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