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Mapletree Logistics Trust (M44U) acquires assets for $1bn

By Mensholong Lepcha

08:11, 23 November 2021

Warehouse employee unloading boxes
Warehouse employee unloading boxes – Photo: Shutterstock

Singapore-based Mapletree Logistics Trust said it will acquire 17 logistics properties across China, Japan and Vietnam for a combined deal value of about SGD1.4bn ($1.03bn).

“The pandemic has highlighted the importance of logistics and placed a greater emphasis on supply chain resiliency, fuelling demand for modern logistics space,” said Ng Kiat, chief executive of Mapletree Logistics Trust Management.

Of the total 17 logistics facilities that will be acquired, 13 are located in China and will cost SGD870m, Mapletree Logistics Trust said. Three Vietnam-based properties and one Japan-based facility will cost SGD129.9m and SGD416.3m, respectively.

Funding acquisitions

The company said it intends to finance the proposed acquisitions via a combination of equity and debt.

On Tuesday, stocks of Mapletree Logistics Trust went into a trading halt pending announcement of a capital raising plan.


2,042.35 Price
+0.050% 1D Chg, %
Long position overnight fee -0.0191%
Short position overnight fee 0.0109%
Overnight fee time 22:00 (UTC)
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Oil - Crude

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+0.230% 1D Chg, %
Long position overnight fee -0.0187%
Short position overnight fee -0.0032%
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16,043.70 Price
+0.220% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

The company later announced plans to raise SGD700m, via a private placement and a preferential offering, to fund the acquisitions.

Asia expansion

“The acquisitions in China and Vietnam will expand MLT’s network connectivity in these large growing consumption markets while the acquisition in Japan will scale up our presence in Greater Nagoya, an attractive logistics market strategically located between Greater Tokyo and Greater Osaka,” said Ng.

“Spanning over 1.7 million square feet of gross floor area, this freehold modern ramp-up facility will be our largest asset in Japan,” Ng added.

The proposed acquisitions are expected to be distribution per unit and net asset value per unit accretive on a historical pro forma basis, Mapletree Logistics Trust said.

Read more: Singapore’s Mapletree buys two US logistics portfolios for bn

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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