Singapore-based Mapletree Logistics Trust (MLT) has announced the proposed acquisition of two logistics properties in Pune, Maharashtra, India from a subsidiary of an affiliate of Morgan Stanley Real Estate Investing and Waterloo Motors Private Limited for INR4,550 million (S$84.2million).
The acquisition marks Mapletree Logistics Trust’s maiden entry into the Indian logistics market.
“This will be MLT’s first acquisition in India, a fast growing logistics market that offers attractive long term prospects. Strong demand for logistics space is underpinned by a large growing consumer market, rapidly developing e-commerce, India’s increasing importance as a major manufacturing hub in Asia Pacific as well as a severe lack of supply of Grade A warehouses. The Acquisition will enhance our geographical diversification and network connectivity, positioning MLT well to capture future growth opportunities in the region,” said Ms Ng Kiat, Chief Executive Officer of the Manager.
Mapletree Logistics Trust said the properties have a combined gross floor area (GFA) of 89,229 square metre and are purpose-built with modern logistics specifications, including height clearance of 8.5 to 9 metres and floor loading of 6 to 8 tonnes per sqm.
The Properties are located within the Pune Metropolitan Region, an established zone for high-tech engineering and automobile industries that has attracted many multinationalcorporations.
The properties are 98.2% leased to a tenant base comprising mostly MNCs such as Kawasaki and Hyundai. The leases have a weighted average lease expiry (by revenue) of 2.2 years with built-in annual escalations.