Singapore-listed Mapletree Logistics Trust (MLT) is acquiring a cold storage facility at 5-17 Leslie Road and 6-10 Pipe Road in Melbourne, Victoria, Australia for A$42.8 million (S$42.8 million).
MLT said the acquisition is expected to generate an initial net property income yield of 4.3% and will be accretive at the distribution level.
The property is located within the inner west precinct of Melbourne, an established industrial and logistics region in the vicinity of MLT’s existing four properties. With excellent connectivity to major arterial routes and its close proximity to the city centre (~13km) and the Port of Melbourne (~10km), the inner west precinct is a location of choice for users from the logistics, light manufacturing and food distribution industries.
Spanning a total net lettable area (‘NLA”) of approximately 14,747 sqm, the property is comprised of five blocks of cold and freezer warehouse (77% of NLA), ambient warehouse, office and other amenities.
Following this acquisition, Mapletree Logistics Trust will have five logistics assets in Melbourne and a total of 13 assets in Australia with over A$870 million in assets under management and 352,400 square metres (sqm) of leasable space.
”The acquisition will be 100% funded by debt and is expected to be completed by 3Q FY21/22, subject to fulfilment of conditions precedent,” said the company in the press release.
The property is 100% leased to Austco Polar Cold Storage for the storage, packaging and export of red meat products.