Mapletree Logistics Trust (MLT), through its special purpose vehicle in Malaysia, has announced plans to divest three properties located in Malaysia as part of its ongoing portfolio rejuvenation strategy. The properties—Linfox, Celestica Hub, and Zentraline—will be sold for a combined value of MYR157.5 million (approximately S$47.7 million). This transaction is aimed at enhancing MLT’s financial flexibility to pursue new investment opportunities in modern, high-specification logistics facilities with better growth potential.

Details of the Properties:

• Linfox: Situated in Shah Alam, Selangor, this property consists of a single-storey warehouse and a double-storey office. The total net lettable area (NLA) is 17,984 square meters, with the property’s age at approximately 27 years. The proposed sale price of MYR72.0 million is 28.6% higher than its most recent valuation of MYR56.0 million as of March 31, 2024.
• Celestica Hub: Located in Senai, Johor, Celestica Hub comprises two blocks of single-storey industrial warehouses with a total NLA of 22,304 square meters and an average building age of 18 years. The sale price is MYR43.2 million, which is 2.9% above the March 2024 valuation of MYR42.0 million.
• Zentraline: Also located in Shah Alam, this 23-year-old property includes a single-storey warehouse with an annex office space, totaling 14,529 square meters. The sale price is MYR42.3 million, which is 1.9% higher than its recent valuation of MYR41.5 million.

Strategic Objectives

The divestments align with MLT’s strategy to recycle capital into higher-growth assets, ensuring that the trust remains focused on modern logistics facilities that better meet the demands of today’s supply chain. Capital from these divestments will provide financial flexibility, allowing MLT to explore investments in assets with higher specifications and greater income growth potential.

Impact on Portfolio

Following the completion of these divestments, MLT’s portfolio will consist of 182 properties, with an emphasis on logistics real estate in strategic markets across Asia, including Singapore, Australia, China, India, Japan, and South Korea. The divestments are expected to be completed by the end of the 2024/2025 financial year, and they are not expected to materially impact MLT’s net asset value or net property income for the year.