MapletreeLog buys Changi South Street warehouse for S$34m

Mapletree Logistics Trust has acquired a warehouse at Changi South Street for S$34 million.

The acquisition is expected to be completed in the first quarter of this year.

The vendor of the property is CEVA Freight, which will lease back the property for an initial term of five years, with an option to extend for another five years.

Its rental will rise two per cent per year from the second year.

MapletreeLog said the acquisition will be accretive to its distribution per unit, adding an additional 0.02 Singapore cents or 0.4 per cent.

The acquisition is fully funded by proceeds from the trust’s recent private placement of 115 million new units in November last year.

Source: Channel News Asia, 22 Jan 2010