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.