Singapore – Mapletree Investments Pte Ltd (Mapletree) today announced that it has signed an agreement to develop 54,000 sqm of warehouse space in the Tianjin Airport International Logistics Zone (TAILZ) at Tianjin Binhai International Airport. The project, which has a land area of 5.26 ha, will be developed in two stages. When completed, it will have an investment value of about RMB 160 million (S$32.0 million). As the Sponsor to 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, “Mapletree is committed to help the Trust grow and strengthen its presence in markets with expanding demand for logistics facilities. Our strong financial capability together with our extensive business network and strategic alliances allows us to comprehensively support MapletreeLog in developing pipelines in the region for the Trust to meet the needs of its customers. This role of the Sponsor is particularly relevant in markets where there is a shortage of good quality ready warehouses.”

The Tianjin Airport International Logistics Zone (TAILZ) is one of the key developments in the Binhai New District. It has been earmarked by the China Administration of Civil Aviation to become the air cargo hub for Northern China. The freight capacity of the Tianjin airport is expected to reach 500,000 tons every year by 2015.

Mr Hiew said: “We are very pleased to have gained a strategic foothold in the Tianjin logistics market. Tianjin is an important gateway city in northern China. Not only is it the nearest port city to Beijing, it is also the largest industrial base and logistic hub in the Bohai Bay Area in northern China.”

Mr. Chua Tiow Chye, Chief Executive Officer of Mapletree Logistics Trust Management Ltd., added: “The limited space within TAILZ is highly sought after because of its proximity to the fast-growing airport and its bonded status allows for efficient on-site customs clearance. We are very pleased that our Sponsor has secured the last remaining land in the airport park, to develop modern logistics facilities targeted at logistics operators, especially those in the freight and express sectors looking to harness Tianjin’s growth as a cargo hub for northern China.”