Mapletree Logistics Trust to sell Xi’an subsidiary for 70.5 million yuan

MAPLETREE Logistics Trust : M44U 0% announced the divestment of its entire equity interest in its wholly foreign-owned enterprise, Mapletree Logistics Warehouse (Xian), for an estimated price of 70.5 million yuan (S$13.1 million).

In a bourse filing on Wednesday (Jun 12), the trust’s manager said that the foreign enterprise owns Mapletree Xi’an Logistics Park, comprising a single-storey warehouse with a four-storey office and a two-storey warehouse, in China’s south-central city, Xi’an.

The buyer is an unrelated third party, which the manager did not name.

The logistics park has a building age of nearly 20 years and a net lettable area of about 22,876 square metres (246,235 square feet).

The proposed sale price, subject to post-completion adjustments, is 0.7 per cent higher than the park’s valuation of 70 million yuan as at Mar 31, 2024; the sum factors in the intercompany loans granted to the Xi’an enterprise.

The divestment is expected to be completed by the third quarter of the 2024/2025 fiscal year.

The manager said that the divestment is not expected to have a material impact on Mapletree Logistics Trust’s net asset value and net property income for the fiscal year.

It noted that this divestment aligns with its strategy to refresh the trust’s portfolio through selective sales.

“Capital released from the divestment will provide the trust with greater financial flexibility to pursue investment opportunities in high-specification, modern logistics facilities with higher growth potential,” the manager added.

Following the divestment, the trust’s portfolio will consist of 186 properties.

Before the announcement, shares of Mapletree Logistics Trust closed flat at S$1.32 on Wednesday.