MAPLETREE Logistics Trust (MLT) has acquired a newly built freehold logistics facility in Hiroshima, Japan for 6.37 billion yen (S$82.1 million), the trust manager announced on Monday.

 

Completed in November 2020, Higashi Hiroshima Centre is a two-storey single-block dry logistics facility with a total gross floor area of 26,948 square metres (sq m) sited on freehold land of approximately 85,660 sq m. It is located in the Shiwa industrial and logistics cluster, an established industrial and logistics park, and is adjacent to the Sanyo Expressway, which provides access to Hiroshima city centre and Hiroshima Airport.

 

The property was acquired through the transfer of real estate trust beneficiary interest from the vendor, Mizuho Marubeni Leasing Corporation.

 

The acquisition will be funded by debt, and is expected to be accretive at the distribution level. It is expected to generate a stabilised net property income yield of 4.5 per cent, based on the property purchase price of 6.37 billion yen.

 

One-third of the facility' s lettable area is leased for five years to a domestic third-party logistics player serving prominent industrial end users, major convenience stores and supermarket chains.

 

The trust manager said the property is expected to enjoy healthy leasing demand from logistics customers, as it is strategically located in an area where the supply of modern warehouse facilities is limited due to mountainous terrain.