Maple Tree Logistics management, a Singapore-based logistics real estate investment trust, has announced the proposed acquisition of the Coles Distribution Centre located in Heathwood, Brisbane.
The property purchase consideration is $105 million via the acquisition of all the units in the property trust holding the Property from an unrelated third party.
“This acquisition will bring MLT’s portfolio in Australia to ten properties with an AUM of over S$600 million. With a WALE of 4.3 years and fixed annual escalations, the acquisition will provide stable and growing income to our Unitholders,” Ms Ng Kiat, Chief Executive Officer of the Manager said.
The Property is 100% leased to Coles Supermarkets until January 2023 (remaining lease term of 4.3 years) and supports Coles’ operations in Queensland and the northern part of New South Wales.
The Property has been valued at A$105.0 million by Savills as at 3 October 2018 based on the net income and discounted cash flow methods. Funding of the acquisition is expected to generate an initial net property income yield of 5.7% at the property purchase consideration of A$105.0 million.
The company believes that Brisbane is well-placed due to a growing logistics market underpinned by robust domestic consumption. Continued population growth, rising incomes and higher tourist numbers have spurred retail turnover and demand for logistics properties, while current supply of prime logistics properties remains tight.
Going forward, the Brisbane logistics market is well poised to benefit from the government’s committed investments in several major infrastructure developments, including Brisbane Airport’s second runway, the inland rail connecting Melbourne and Brisbane, and various road and intersection upgrade projects.