Singapore – Mapletree Investments Pte Ltd (“Mapletree”) today announced that it has commenced construction of its 10-hectare logistics park, Mapletree Shah Alam Logistics Park (“MSALP”) in Malaysia. The park is expected to be completed in early 2009 and be mostly pre-leased to logistics operators by the time of completion.
MSALP has generated keen interest among many logistics players requiring modern logistics spaces. The logistics park, which is one of the first of its kind in Malaysia as a comprehensively designed campus, will feature 60,000 square metres of gross floor area in three single-storey warehouses with mezzanine offices. When completed, the project is estimated to have a value of approximately S$60 million.
MSALP is one of the 10 logistics park projects which Mapletree has committed some S$850 million to develop in China, Vietnam and Malaysia. Mapletree’s logistics real estate business is executed firstly through developing such greenfield projects in markets where there is a shortage of good quality logistics facilities and secondly through sponsoring and supporting Mapletree Logistics Trust (“MapletreeLog”), a REIT which owns and manages completed investment logistics facilities across Asia.
Mapletree has a 30.16% stake in MapletreeLog and the development projects it is undertaking will be offered on a right of first refusal basis to MapletreeLog. This will ensure a regular pipeline for MapletreeLog while catering to the expansion needs of logistics clients in the region. With this two-pronged approach, the Mapletree group can tap into the growing logistics and outsourcing trends in both developed as well as emerging markets in Asia.
As sponsor of MapletreeLog, Mapletree has also undertaken to take up its entire 30.16% entitlement of the proposed underwritten renounceable rights issue by MapletreeLog recently announced. In addition, Mapletree has received approval from the Securities Industry Council to have the option to apply for excess rights units, subject to unitholders’ endorsement at the extraordinary general meeting to be held on 18 July 2008.
Mr Hiew Yoon Khong, CEO of Mapletree, said, “The prospects for the logistics sector in Asia remain strong and we are fully committed to grow our logistics real estate platform in the region. With our latest logistics park in Shah Alam, we can now offer a broader network of facilities to our tenants.”
“We are also fully committed to support MapletreeLog’s growth. We believe that MapletreeLog is well positioned to tap into the bright logistics industry prospects in Asia. The current rights issue is an excellent investment opportunity with a very attractive entry price for investors. We believe that once the rights issue is completed, MapletreeLog will have a more robust balance sheet to capitalise on very attractive opportunities that may be available over the next 24 months. At the rights issue price of $0.73, MapletreeLog will offer a historical dividend yield of almost eight per cent based on annualising its Q1 2008 distribution after adjusted for the rights issue exercise. We have therefore undertaken to vote in favour of the resolution for the rights issue and will step up to pick up excess rights, if necessary. We have every confidence that the MapletreeLog will continue to grow the distribution per unit for investors with a focus in the short-term on organic growth and asset enhancement to optimise yields,” Mr Hiew added.
Important Notice
The contents of this press release are for information only and are not intended, and should not be construed, as an offer of any securities (including units in a collective investment scheme) by Mapletree or any other entity for sale in the United States, or as an invitation or offer to acquire, purchase or subscribe for units in MapletreeLog (“Units”). Any securities described herein have not been and will not be registered under the Securities Act or the laws of any state, and may not be offered or sold within the United States, except pursuant to an exemption from or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws. There is no intention to register any portion of the proposed rights issue described herein in the United States or to conduct a public offering of securities in the United States.
The rights issue circular in relation to the proposed rights issue will be dispatched to unitholders of MapletreeLog (“Unitholders”) when the offer in relation to the proposed rights issue is made, subsequent to the approval of the proposed rights issue by Unitholders at a general meeting.
A potential investor should read such rights issue circular before deciding whether to subscribe for or purchase rights units under the proposed rights issue. The value of the Units and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager of MapletreeLog or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested.
