Singapore – Mapletree Investments Pte Ltd (Mapletree) today announced that it has signed a sale and purchase agreement with Taian (Malaysia) Electric Sdn. Bhd. to acquire its industrial site in the Shah Alam industrial estate (“Taian property”) for RM 39 million (about S$17 million). It will re-develop the site into a cluster of single-storey multi-tenanted warehouses with a total gross floor area (GFA) of approximately 60,000 sq m on the 10-hectare site. When completed, the total investment value is estimated at S$45 million. Separately, Mapletree also announced that it will develop a logistics centre in Wuxi New District, Wuxi, China with a GFA of about 42, 000 sq m on a 6.8-hectare site. When completed, the development, which consists of three single-storey warehouses with mezzanine offices, will have an investment value of about S$20 million.
These projects mark Mapletree’s first logistics development project in Malaysia and its third in China, after Lingang and Tianjin. As the Sponsor of Mapletree Logistics Trust (“MapletreeLog”), Mapletree intends to offer these facilities to the Trust on a right of first refusal basis when they are completed and leased.
Mr Hiew Yoon Khong, CEO of Mapletree said, “Both Malaysia and China are very important markets for us. We are expecting healthy rental growths in the Malaysian market where the fundamentals of the local logistics industry are improving due to increasing warehousing needs from third party logistics companies (“3PLs”). The logistics market in China is also growing rapidly; fuelled by factors such as the liberalisation of the logistics market in 2005, China’s 23.8% import/ export growth rate in 2006, as well as a forecasted 23% rise in China’s container throughput last year.”
He added, “As Sponsor of MapletreeLog, we are committed to help the Trust grow and strengthen its presence in markets with expanding demand for logistics facilities. These projects will enable Mapletree to make important inroads into the key logistics hubs in Asia to develop pipelines for MapletreeLog while satisfying the needs of our logistics customers. Our role as Sponsor is particularly relevant in markets where there is a shortage of good quality ready warehouses.”
Mr Chua Tiow Chye, CEO of Mapletree Logistics Trust Management Ltd. said, “From MapletreeLog’s point of view, both Malaysia and China are key markets for us. The logistics industry in Malaysia is growing strongly in tandem with the country’s strong economic recovery since 2001, with 3PLs seeking good quality logistics facilities in Malaysia to consolidate and expand their operations. This particular project is well located in the Shah Alam industrial area with good accessibility to Kuala Lumpur, ports at Klang area and the KLIA.”
“The development of warehouse space at Wuxi New District is also timely due to the rapid growth in demand for quality logistics spaces by multinational 3PL players in the Yangtze River Delta Area, covering Shanghai, Suzhou and Wuxi, coupled with the inability of the current stock of warehouses to meet the requirements of these logistics players. We are pleased that the Sponsor will be supplementing our growth by providing a strong pipeline of good quality logistics facilities in key strategic locations across Asia”, he said.
