The divestment is not expected to have a material impact on MLT's net asset value and net property income for FY2025/26.
The trustee of $Mapletree Log Tr (M44U.SG)$ has proposed to divest 1 Genting Lane, a seven-storey warehouse with an office for $12.3m.
The 36-year-old industrial building has a net lettable area of approximately 6,050 sq m. The sale price is 35.2% above the latest valuation of $9.1m as of 1 October.
HSBC Institutional Trust Services has entered into a purchase agreement with an undisclosed third party for the proposed divestment.
In a bourse filing, MLT said that JTC Corporation has granted in-principle approval for the transaction, subject to the parties complying with the stipulated conditions.
The divestment is part of MLT's portfolio rejuvenation through selective divestments of assets that are no longer aligned with its strategy. The divestment will bring MLT's portfolio to 179 properties.
Proceeds from the divestment will be invested in high-specification, modern logistics facilities with higher growth potential.
The proposed divestment is expected to be completed by Q1 FY2025/26 and is not expected to have a material impact on MLT's net asset value and net property income for the financial year.
