Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

Singapore Real estate / Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> looks to acquire a Changi logistics property for S$24.5m; Stabilized NPI yield of ~6.2% </h3><ul><li>MLT has been granted an option to acquire 9 Changi South Street 2 from RSH Holdings for a purchase price of S$24.5m (vs. independent valuation of S$24.6m as at 25Jun21). The property, a purpose-built facility comprising a part 3-storey, part 4-storey temperature-controlled warehouse with ancillary office and other amenities, has a GFA of 11,506sqm. It is located at a prime location and a relatively long remaining land tenure of ~33.3 years. The property is also adjacent to its existing property at 15 Changi South Street 2, thus presenting the opportunity for potential economies of scale</li><li>Its favourable location should attract demand from industries involved in high-value and time-sensitive goods such as electronics and pharmaceutical, as well as e-commerce firms and third-party logistics players (“3PLs”) looking to expand in the Changi South/East region. The Property will be sold with vacant possession and the Manager is in talks with an international 3PL to lease it as the anchor tenant</li><li>The Proposed Acquisition is subject to, among others, approval from JTC Corporation and exercise of the OTP by MLT. The total purchase consideration of S$27.2m (including transaction costs of c.S$2.7m) will be funded by debt and is expected to be completed by 3QFY21/22</li><li>Upon completion, MLT’s aggregate leverage ratio will be ~38.5%, while MLT’s total portfolio will comprise 164 properties with total AUM of S$10.8bn. The proposed acquisition is expected to generate a stabilised NPI yield of ~6.2% based on the purchase price and initial land premium, and it is also expected to be DPU accretive.</li></ul>

SingaporeMapletree Logistics Trust (MLT SP) looks to acquire a Changi logistics property for S$24.5m; Stabilized NPI yield of ~6.2% MLT has been granted an option to acquire 9 Changi South Street 2 from RSH Holdings for a purchase price of S$24.5m (vs. independent valuation of S$24.6m as at 25Jun21). The property, a purpose-built facility comprising a part 3-storey, part 4-storey temperature-controlled warehouse with ancillary office and other amenities, has a GFA of 11,506sqm. It is located at a prime location and a relatively long remaining land tenure of ~33.3 years. The property is also adjacent to its existing property at 15 Changi South Street 2, thus presenting the opportunity for potential economies of scaleIts favourable location should attract demand from industries involved in high-value and time-sensitive goods such as electronics and pharmaceutical, as well as e-commerce firms and third-party logistics players (“3PLs”) looking to expand in the Changi South/East region. The Property will be sold with vacant possession and the Manager is in talks with an international 3PL to lease it as the anchor tenantThe Proposed Acquisition is subject to, among others, approval from JTC Corporation and exercise of the OTP by MLT. The total purchase consideration of S$27.2m (including transaction costs of c.S$2.7m) will be funded by debt and is expected to be completed by 3QFY21/22Upon completion, MLT’s aggregate leverage ratio will be ~38.5%, while MLT’s total portfolio will comprise 164 properties with total AUM of S$10.8bn. The proposed acquisition is expected to generate a stabilised NPI yield of ~6.2% based on the purchase price and initial land premium, and it is also expected to be DPU accretive.

ASEAN Builder's Scoop (12Jul21) - MLT Acquires Changi Logistics at 6.2% Yield