Mapletree Logistics to Buy $1 Billion of Assets Across Asia

(Bloomberg) -- Singapore’s Mapletree Logistics Trust is set to acquire assets across China, Japan and Vietnam in deals worth over S$1.4 billion ($1.03 billion) amid growing consumption of e-commerce in those markets.

The real estate investment trust is purchasing 13 logistics properties in China valued at S$870 million, while the proposed acquisitions of three similar assets in Vietnam are worth S$129.9 million, according to a filing on the Singapore Exchange late Monday. In Japan, Mapletree Logistics agreed to buy a logistics facility for S$416.3 million. 

The company halted trading on Tuesday morning. Its shares last traded at S$1.95.

Read more: Mapletree Logistics S$1.47 Billion Buy May Lift DPS 2.2%: React

The logistics investor said it intends to finance the proposed acquisitions through a combination of equity and debt. In a separate announcement on Tuesday, the company said it’s launching an equity fund raising for S$700 million. Mapletree Logistics is backed by Mapletree Investments Pte, which is owned by state investor Temasek Holdings Pte.

The purchases in China and Vietnam come as the two markets see growing e-commerce demand from an emerging middle class, which is expected to drive higher demand for logistics, the company said. With assets under management of S$10.8 billion as of September this year, the company has a portfolio of 163 logistics properties in countries including Singapore, China, Australia, Malaysia and South Korea, according to its website.

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