Singapore – Mapletree Investments Pte Ltd today announced that it has signed a letter of offer and acceptance with SESDAQ-listed KLW Holdings Limited, to acquire its corporate headquarters at 19 Senoko Loop for approximately S$15.6 million. KLW Holdings Limited is a manufacturer of doors and retailer of lifestyle products.

The deal involves a sale and leaseback arrangement, with KLW taking a 10-year lease with an option to renew for a further five years. The proposed lease of the building is set at a rental fee of $1.8 million per annum. The 4-storey logistics building with a gross floor area of about 14,771 sq m, sits on approximately 11,301.9 sq m of land. This arrangement with KLW is in line with their intention to go asset light and redeploy their resources more efficiently, while leveraging on Mapletree’s core competence and expertise in developing, marketing and managing commercial, logistics and industrial properties.

This would be Mapletree’s second acquisition of a logistics facility this year. On 3 May 2004, Mapletree signed a put and call option with Teckwah Industrial Corporation Ltd to purchase TIC Tech Centre for S$48 million. These acquisitions are part of Mapletree’s strategy to build up a portfolio of suitable logistics-related assets worth up to S$1 billion for its logistics REIT to be launched within the next 12 months.

Mr Hiew Yoon Khong, CEO of Mapletree said, “We are pleased to be KLW’s real estate partner by providing warehousing space for their logistics and distribution needs. This is a progression of our relationship with them that also includes meeting their requirements for retail space at our HarbourFront Centre for their Barang Barang store. With our experience in developing, marketing and managing logistics-related properties, we can be a strategic real estate partner for companies requiring logistics infrastructure, not only for their Singapore operations but also for their overseas expansion.”