Singapore – Mapletree Investments Pte Ltd today announced that it has entered into a Put and Call Option Agreement to acquire TIC Tech Centre, a logistics facility, from mainboard-listed supply chain services provider, Teckwah Industrial Corporation Ltd, for $48 million. This purchase would signal more acquisitions to come as part of Mapletree’s thrust to become a strategic real estate partner for logistics operators.
TIC Tech Centre, a six-year old building, is located at Pandan Crescent. It has a gross floor area (GFA) of approximately 37,400 sq m, with a provision for an extension of a further 5,000 sq m. The building sits on approximately 19,000 sq m of land with an approved plot ratio of 2.5. Its current plot ratio is 1.95. It currently enjoys 89% occupancy, of which, 83% is occupied by Teckwah for its corporate headquarters, manufacturing of print components and supply chain management activities. With this 89% occupancy, the acquisition will give Mapletree an attractive property yield exceeding 8%. This yield is expected to further improve as Mapletree starts to actively lease out the balance of the space.
The purchase of TIC Tech Centre by Mapletree, involves a long-term lease back arrangement with Teckwah. This arrangement effectively frees Teckwah from the ownership of the asset and the hassle of facility management and maintenance, enabling them to focus on their core business operations, while leveraging on Mapletree’s core competence and expertise in developing, marketing and managing commercial, logistics and industrial properties.
Commenting on the property purchase, Mapletree’s CEO, Mr Hiew Yoon Khong said, “The acquisition of TIC Tech Centre fits in well with Mapletree’s strategy of focusing on our core competence and expertise in developing, marketing and managing logistics-related properties. We want to be a strategic real estate partner to logistics operators in Singapore, and go regional with them when they expand their operations overseas. Based on our long-standing experience in operating warehousing and industrial facilities for shipping and logistics-related companies, as well as our relationship with them, we believe that we will be able to add value to logistics operators with our understanding of their real estate needs.”
“We see this purchase as the beginning of more acquisitions of appropriate assets to come. This will be a key strategic thrust to help us achieve our vision. In the longer term, Mapletree intends to create a REIT platform for its logistics-related assets to grow this business both locally and regionally.” Mr Hiew added.
