Mapletree Logistics Trust Proposed Acquisition of 9 Changi South Street 2 in Singapore 9 July 2021 - Mapletree ...
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Mapletree Logistics Trust
Proposed Acquisition of 9 Changi South Street 2 in
Singapore
9 July 2021
Overview of Property
9 Changi South Street 2, Singapore
Purchase
S$24.5 million
Price
Valuation1 S$24.6 million
30+30 years from 16 Oct 1994
Land Tenure
(remaining lease of ~33.3 years)
Land Area 8,611 sqm
GFA 11,506 sqm
Purpose-built facility comprising a part 3- The Property will be sold with
storey, part 4-storey temperature-controlled vacant possession
warehouse with ancillary office and other Tenant The Manager is in talks with
amenities an international 3PL to lease
Easily accessible via the ECP expressway and the Property as anchor tenant
in close proximity to Changi Airport (~7km)
and the Expo MRT (~850m)
Notes:
1. Based on independent valuation by Savills as at 25 June 2021. The Valuer has valued the Property based on the Income Capitalisation, Discounted Cash Flow
Analysis and Direct Comparison methods.
1
Investment Rationale
Prime location in eastern part of Singapore
Easily accessible via the ECP expressway and in close proximity to Changi Airport (~7km) and
the Expo MRT (~850m)
Limited supply of logistics facilities in eastern part of Singapore
Attractive to users handling high-value and time-sensitive goods (eg electronics and
pharmaceutical), e-commerce firms and third-party logistics players
Adjacent to MLT’s existing property at 15 Changi South Street 2, providing opportunity for
potential economies of scale
Relatively long remaining land tenure of ~33.3 years
Well-positioned to benefit from Singapore’s position as a key logistics hub
Accretive acquisition with an expected stabilised NPI yield of 6.2%1
Proposed Acquisition is subject to approval from JTC Corporation and exercise of Option to
Purchase (OTP)
MLT has paid option fee of 1% of purchase consideration and will pay a further 4% upon
exercise of the OTP, with the balance 95% payable upon completion of the Proposed
Acquisition
Proposed Acquisition will be funded by debt and is expected to be completed by 3Q FY21/22
Upon completion, MLT’s aggregate leverage ratio will be approximately 38.5%2
Note:
1. Based on the purchase price and initial land premium
2. Based on MLT’s financials as at 31 March 2021
2
Strategic Location with Excellent Connectivity
Easily accessible via the ECP expressway, in close proximity to Changi Airport (~7km) and the Expo
MRT (~850m)
Adjacent to MLT’s existing property at 15 Changi South Street 2, thus providing opportunity for
potential economies of scale
Changi
Airport
PIE
EXPO MRT
15 Changi
South Street 2
9 Changi South
Street 2
(The Property)
ECP
3
Impact on Portfolio
4
Top 10 Customer Profile (by Gross Revenue)
No change to MLT’s top 10 customers
7.2% 7.2%
3.4% 3.4% 3.3% 3.3%
2.4% 2.4%
1.9% 1.9% 1.8% 1.8%
1.5% 1.5% 1.4% 1.4% 1.4% 1.4%
1.4% 1.4%
CWT Coles Group Equinix JD.com, Inc. Cainiao Woolworths XPO adidas Hong TE Logis Co., Nippon
Worldwide Kong Limited Ltd. Access Group
Logistics
Existing portfolio 1 Enlarged Portfolio
Note:
1) As at 31 March 2021.
5
Geographical Diversification
1.8% 0.8% 1.8% 0.8%
4.8% 4.8%
(As at 31 Mar 2021)
8.1% 23.2% 8.1% 23.4%
Management by
Singapore
Assets under
Geography
8.5% 8.4%
Existing Enlarged Hong Kong SAR
Portfolio Portfolio
11.3% 11.3% Japan
24.8% 24.7%
China
16.7% 16.7%
Australia
3.2% 3.2%
Malaysia
6.4% 6.4% South Korea
7.5% 7.4%
33.5% 33.7%
Vietnam
Gross Revenue
by Geography
5.9%
(4Q FY20/21)
5.9%
Existing Enlarged
Portfolio Portfolio India
12.0% 11.9%
10.1% 10.0%
21.5% 21.4%
6
Lease Expiry Profile (by NLA)
Weighted average lease expiry (by NLA) remains at 3.6 years
Existing Portfolio1
Single-User Assets Multi-Tenanted Buildings
13.0%
18.0%
24.8%
11.8% 14.1%
4.9%
6.7%
1.6% 2.2% 2.9%
FY21/22 FY22/23 FY23/24 FY24/25 >FY24/25
Enlarged Portfolio
13.2%
17.9%
24.7%
11.8% 14.1%
4.9%
1.6% 6.7%
2.2% 2.9%
FY21/22 FY22/23 FY23/24 FY24/25 >FY24/25
Note:
1) As at 31 March 2021. 7Remaining Years to Expiry of Underlying Land Lease
(by NLA)
Weighted average lease term to expiry of underlying leasehold land (excluding freehold land) is 44.4 years
38.1% 38.1%
21.0% 21.0%
18.0% 18.1%
9.1% 9.0% 8.5% 8.5%
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 31 March 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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