Mapletree Logistics Trust to raise S$78m in private placement

Mapletree Logistics Trust to raise S$78m in private placement

By Irene Chan

SINGAPORE: Mapletree Logistics Trust said Monday it is raising net proceeds of about S$78 million in a private placement.

It is offering 115 million new units at a price of between 69 and 71 Singapore cents per unit.

The net proceeds will be used to finance two proposed acquisitions in Singapore amounting to S$78 million.

One of the acquisitions is a six-storey warehouse facility in the west of Singapore for S$43 million.

The second acquisition is a S$34-million multi-storey warehouse in the east of Singapore.

Both properties will be leased back to their vendors.

The manager of MapletreeLog said the tenants are of high quality and add to the stability of the REIT’s rental income.

The acquisitions will be accretive to MapletreeLog’s distribution per unit.

The manager said financing these acquisitions with equity will create sufficient debt headroom, and the company intends to use that to fund a third acquisition - a S$68-million warehouse facility in Japan.

- CNA/yb

Source : Channel NewsAsia - 10 November 2009

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