Singapore – Mapletree Investments Pte Ltd (“Mapletree”) is pleased to announce today that its wholly-owned subsidiary, Mapletree Industrial Fund Management Pte Ltd (“MIFM”), has signed Letters of Offer to acquire two industrial properties in Malaysia for an aggregate acquisition price of RM171.5 million (about S$75.7 million). These mark the first regional acquisitions for Mapletree Industrial Fund (“MIF”).
The first deal signed with Classic Advantage Sdn Bhd, a Malaysian-incorporated precision plastic components manufacturer and sub-assembler, is for its property located at No 11 Jalan Persiaran Teknologi, Johor Technology Park (“Johor Property”) for RM80 million (about S$35.3 million). The second is with Iris Technologies (M) Sdn Bhd, a wholly-owned subsidiary of MESDAQ-listed Iris Corporation Bhd, for its property located at Lots 8 and 9, Technology Park Malaysia (“TPM”) in Kuala Lumpur (“Kuala Lumpur Property”) for RM91.5 million (approximately S$40.4 million). Both deals have been structured on a sale and leaseback arrangement, with the vendors taking a long lease on the properties.
Commenting on the acquisitions, Mr Hiew Yoon Khong, CEO of Mapletree said, “These acquisitions are an important part of our strategy to expand our investments beyond Singapore for MIF. Malaysia is an important market for us. The manufacturing sector in Malaysia has expanded by 8% in the first three quarters of 2006, contributing 32% to the country’s gross domestic product (GDP). These acquisitions will help us gain a foothold in Malaysia. We will continue to look for quality industrial properties here and across Asia to invest in and grow MIF into a truly pan Asian industrial fund.”
Mr Phua Kok Kim, CEO of MIFM said, “We are pleased to have secured both these properties, which are very high quality industrial assets and well located in two of Malaysia’s most important regions. The property at the Johor Technology Park benefits from its proximity to the University Technology Malaysia campus and the Standards and Industrial Research Institute of Malaysia as synergies and innovations from these two institutions would complement the manufacturing industries located in the Johor Technology Park.”
“The property at the Technology Park Malaysia is also a strategic acquisition for us as it is located within one of Malaysia’s most advanced and comprehensive centres for research and development of ICT and knowledge-based industries, “he added.
