Mapletree Logistics Trust’s (MLT) trustee, HSBC Institutional Trust Services (Singapore) Limited, has entered into an option to divest 20 Old Toh Tuck Road to MSS Toh Tuck Pte Ltd for S$14.25 million.
With a gross floor area of around 7,531 sq m, the property is a part four-storey, part single-storey warehouse. It is nestled on a 5,100 sq m site and has been vacant since March last year after a master lease expired.
It was valued at S$13.0 million as at 31 March 2016.
In an SGX filing, MLT’s manager revealed that the 18-year old property has “limited potential for redevelopment into a modern, ramp-up logistic facility” due to its relatively small land area.
It noted that the sales proceeds will be “used to fund committed investments, reduce existing debt, and/or make distributions to unit holders”.
Set to be completed in March, the proposed divestment is expected to have minimal impact on the net property income and net asset value of MLT for the financial year 2016/2017.
Christopher Chitty, Senior Content Specialist, edited this story