MAPLETREE Logistics Trust is planning to sell a warehouse located in Tuas South Avenue for S$10.5 million, as part of the real estate investment trust’s (Reit) efforts to refresh its portfolio.

The Reit’s trustee, HSBC Institutional Trust Services, has entered into a purchase agreement with an unrelated third-party buyer for the proposed sale of the 25-year-old warehouse, which has a net lettable area of about 5,200 square metres.

The manager of Mapletree Logistics Trust : M44U 0% on Friday (May 10) said that JTC Corporation, which is the landlord of industrial properties in Singapore, has granted in-principle approval for the transaction. It added that capital released from the divestment will provide the Reit with greater financial flexibility to pursue investment opportunities in high-specification, modern logistics facilities with greater growth potential.

The property’s sale price is 10.5 per cent above the latest valuation of S$9.5 million as at Mar 31.

The proposed divestment is expected to be completed by the first quarter of its 2024/2025 fiscal year. It is not expected to have a material impact on its net asset value and net property income for the current fiscal year.

Once the divestment of the warehouse – which is part-one-storey and part-two-storey – Mapletree Logistics Trust’s portfolio will consist of 187 properties.

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Units of the Reit rose 1.5 per cent, or S$0.02, to close at S$1.37 on Friday.