Mapletree Logistics Trust (MLT), Singapore-based logistic REIT, has announced its plan to buy two industrial land parcels in Subang Jaya, Selangor for a price of RM65.6 million, according to a report by EdgeProp Singapore on Feb 15.

With the plan to acquire the two parcels, MLT aims to develop the first modern ramp-up warehouse in Subang Jaya.

“This is in line with our strategy to optimise MLT’s portfolio and future-proof our assets through asset rejuvenation,” said chief executive officer of MLT’s manager Ng Kiat.

In a separate report by The Business Times, the acquisition of the two parcels are located adjacent to their existing properties that they have owned in the area which are Subang 3 and Subang 4.

The two land parcels are only 20 minutes’ drive away from its other nearby assets which are Mapletree Shah Alam Logistics Park and Mapletree Logistics Hub – Shah Alam.

With the total land size of 257,000 sq ft of the two land parcels, this addition together with MLT’s two other assets, will bring the total land parcel to 492,000 sq ft.The property may also have the potential to yield up to 1.4 million sq ft in gross floor area. The development is poised to be the first mega modern logistics facility in Subang Jaya, with estimated development cost of about RM500 million when completed in 2027.

As of Jan 24, First Pacific Valuers Property Consultants have accorded a value of RM67.8 million on the land parcels, said MLT.

Subject to regulatory approvals, the acquisition will be funded by debt. MLT’s aggregate leverage ratio is estimated to be around 39.2% on a pro forma basis.

Source: EdgeProp, February 16, 2022