Mapletree Logistics Trust
Proposed Acquisitions of Interests in Five Logistics Assets Located in South Korea
15 February 2021
Overview of the Proposed Acquisitions
Dongsan Logistics CentreAbleLogis Logistics CentreCoreLogis Logistics CentreBukuk Logistics CentreGwan-ri Logistics Centre
Agreed Property
Value (KRW billion)
28.2 26.7
Valuation3 (KRW billion)
29.8 27.9
NLA Land Lease Occupancy
Clear Ceiling
Height
Floor Loading
55,139 sq m Freehold 100% 9.3m - 12m 20kN/sqm
29,977 sq m Freehold 100% 9.8m - 11.3m 20kN/sqm
29,898 sq m Freehold 100% 9m 12kN/sqm
18,706 sq m Freehold 100% 10m 20kN/sqm
15,971 sq m Freehold 100% 10m 20kN/sqm
Tenant
Dongsan Logistics
TE Logis
Han Express
Han Express
DPL
Notes:
1) Based on exchange rate of KRW 836.40 = S$1.00.
2) As at 1 February 2021.
3) Based on independent valuations conducted by Chestertons Korea Co., Ltd. (the "Valuer") as at 13 January 2021. The Valuer has valued the Properties primarily based on the Market Approach and the Income Approach.
Strengthen MLT's portfolio quality and competitive positioning in South Korea with the addition of high quality, modern assets
Modern warehouses with a weighted average age (by NLA) of 4.2 years
Built to high specifications that cater to the modern requirements of third party-logistics firms and e-commerce tenants
Strong floor loading of 12kN/m² to 20kN/m², high floor-to-ceiling height of 9m to 12m, large contiguous floor plates of up to 21,000 sq m, direct ramp access
Acquisitions will increase MLT's GFA in South Korea by almost 40% and scale up MLT's competitive positioning
Deepen MLT's presence in Yongin-Icheon, a prime logistics cluster supporting the Seoul Metropolitan Area
Located in south-east region of the Seoul Metropolitan Area ("SMA"), where over half of SMA's warehouse supply is located
Highly sought-after location due to its proximity to Seoul and good accessibility to various parts of the country, which makes it ideal for domestic distribution
Yongin-Icheon offers easy accessibility to Gyeongbu and Jungbu Expressways, which run north-south, as well as Yeongdong Expressway, the major expressway connecting the east and west coasts
100% leased to strong tenant base
45% of the Properties' revenue base is accounted for by tenants engaged in e-fulfilment activities
Tenants include Dongsan Logistics and TE Logis which are supporting Coupang and e-Bay respectively, the leading e-commerce players in South Korea
Other tenants Han Express and DPL support end-users from the consumer sectors, including a multinational footwear company and a global consumer electronics retailer
Increase MLT's e-commerce revenue exposure in South Korea from 15% to 25%
Capitalise on growth opportunities from accelerated e-commerce adoption
South Korea is the third largest e-commerce market in Asia Pacific where online sales grew at a 5-year CAGR of 26% from 2015 to 20191
COVID-19 pandemic has accelerated e-commerce adoption
Given their modern specifications and favourable locations with excellent connectivity, the Properties are well-positioned to capitalise on the growing demand for quality warehouse space
Acquisitions are expected to be accretive
Acquisitions will be funded by debt
Upon completion, MLT's aggregate leverage ratio is projected to be approximately 38.9%2
Notes:
1. Source: Korea Statistical Information Service.
2. Based on MLT's unaudited financial statements for 31 December 2020 and as if the Acquisitions were completed on 31 December 2020. Taking into account the acquisition of Mapletree Logistics Hub - Tanjung Pelepas as announced on 19 October 2020 and which is pending completion, the aggregate leverage ratio will be 39.6%.
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Mapletree Logistics Trust published this content on 15 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2021 12:30:08 UTC.