Subang 1 is a 16-year-old single-storey warehouse in Subang while Chee Wah is an 18-year-old single-storey warehouse in Puchong. Subang 1 has a gross floor area (GFA) of 12,873 sqm (138,563.82 sq ft) while Chee Wah has a GFA of 7,705 sqm. According to MLT, both properties have “limited redevelopment potential”.
The total sale price is said to be 6.1% above the latest aggregate valuation of 47.3 million ringgit for both properties as at Oct 1, 2022. According to MLT’s manager, the one-off disposal fee at 0.5% of the sale price will be waived for this transaction.
The proposed divestments are said to be in line with the REIT manager’s proactive asset management strategy to rejuvenate the portfolio.
The capital released from the divestments will provide the REIT with greater financial flexibility to “pursue investment opportunities of modern assets that cater to the requirements of today’s logistics users”.
See also: SGX gives approval-in-principle to FHT to delist
The divestment is expected to be completed by the first half of MLT’s FY2023/FY2024. Upon the completion of the divestment, MLT’s portfolio will consist of 183 properties.
Units in MLT closed 1 cent lower or 0.62% down at $1.60 on Jan 13.
