MAPLETREE Logistics Trust (MLT) to Divest Subang 2 Property for RM31.5 Million
Overview
MAPLETREE Logistics Trust (MLT) has entered into an agreement to divest its Subang 2 property in Malaysia to an unrelated third party for RM31.5 million (S$9.6 million). This sale price is 31.3% higher than the property’s latest valuation of RM24 million as of October 31, 2024.
Property Details
The Subang 2 property is located in Subang, Selangor, and comprises a single-storey warehouse and an annex three-storey office with a building age of over 27 years. The property has a net lettable area of 8,297 square meters.
Divestment and Portfolio Rejuvenation
The divestment is expected to be completed in the first half of FY25/26 and is expected to have no material impact on MLT’s net asset value and net property income for the financial year. Following the divestment, MLT’s portfolio will consist of 178 properties.
The divestment is in line with the manager’s efforts to rejuvenate its portfolio through selective divestment of assets that are no longer aligned with its strategy. The capital released from the divestment will provide MLT with greater financial flexibility to pursue investment opportunities in high-specification, modern logistics facilities with higher growth potential.
Market Reaction
Units of MLT closed S$0.01 or 0.8% higher at S$1.30 on the day of the announcement.
Conclusion
The divestment of Subang 2 property is a strategic move by MAPLETREE Logistics Trust to refresh its portfolio and allocate resources to higher-growth opportunities. The company’s commitment to selective divestment and reinvestment in high-quality assets is expected to drive long-term value creation for its unitholders.
Frequently Asked Questions
Q: What is the sale price of the Subang 2 property?
A: The sale price is RM31.5 million (S$9.6 million).
Q: How does this sale price compare to the property’s latest valuation?
A: The sale price is 31.3% higher than the property’s latest valuation of RM24 million as of October 31, 2024.
Q: When is the divestment expected to be completed?
A: The divestment is expected to be completed in the first half of FY25/26.
Q: What is the impact of the divestment on MLT’s net asset value and net property income?
A: The divestment is expected to have no material impact on MLT’s net asset value and net property income for the financial year.
