Mapletree Industrial Trust has announced the sale of three properties to Brookfield Asset Management for $535.3 million and use the proceeds to lower debt.
The three properties are The Strategy and The Synergy at International Business Park, and the Woodlands Central Cluster.
The price is a 2.6% premium over the independent valuations of the properties as of March 31, and 22.1% over their original investment cost of $438.4 million.
Ler Lily, CEO of the manager says that the divestment aligns with her proactive asset management strategy of optimising portfolio composition while maintaining financial agility to seize new value-creating investment opportunities that will create sustainable returns.
Even with the completion of the divestment, Singapore assets remain a key component of MIT’s portfolio and account for approximately 44.4% of MIT’s assets under management.
"MIT’s properties in Singapore will continue to provide portfolio stability and growth, as we pursue portfolio rejuvenation and rebalancing efforts through selective divestments of properties and accretive investments," says Ler.
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On a pro forma basis, the transaction is expected to lower MIT’s aggregate leverage ratio from 40.1% as at March 31 March 2025 to 37.0% and improve its interest coverage ratio for the trailing 12 months from 4.3 times to 5.1 times.
Mapletree Industrial Trust units closed at $1.94 on May 15, unchanged for the day but down 13.39% year to date.
