The manager of Mapletree Logistics Trust announced on Dec 5 that the REIT is set to sell Senai-UPS, a Johor industrial property, at MYR28 million ($9.3 million) to electronics manufacturer VS Industry Berhad.
Located on an 18,165 sq m plot of land within the Senai Industrial Estate, the property is a single-storey warehouse with an annexed two-storey office building. It spans a gross floor area of 11,494 sq m. The property has been 51% occupied since early 2015, when the existing tenant reduced its lease space, says the manager.
Mapletree Logistics Trust bought the property in 2007 at MYR25.5 million. It was valued by Savills (Johor) at MYR20.5 million as at Oct 31, based on the cost approach.
(Credit: Mapletree Logistics Trust)
According to the manager, the divestment was attributed to the property’s “low yield and limited future income growth”, and was decided upon after considering a variety of asset options, such as redevelopment. The manager is looking to invest the capital released from the sale of the property in newer and higher yielding assets. In the meantime, the funds will be used for working capital.
Upon the sale of the property, slated for completion in 1Q2018, the manager will receive a divestment fee of 0.5% of its sale price, or MYR140,000.
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