Friday, July 11, 2008

Mapletree starts construction of Shah Alam Logistics Park

Mapletree Investments on Friday said that it has started the construction of a 10-hectare logistics park in Malaysia.

The Shah Alam Logistics Park is expected to be completed early next year and be mostly pre-leased to logistics operators.

It will have 60,000 square metres of gross floor area in three single-storey warehouses with mezzanine offices.

When completed, the project is estimated to have a value of about S$60 million.

The park is one of the 10 logistics park projects that Mapletree is developing in China, Vietnam and Malaysia.

All in, Mapletree has committed some S$850 million to these projects.

Mapletree, which owns 30 per cent of Mapletree Logistics Trust (MapletreeLog), said the development projects it is undertaking will be offered on a right of first refusal basis to MapletreeLog.

This will ensure a regular pipeline for MapletreeLog, while catering to the expansion needs of logistics clients in the region.

Mapletree also said it will take up its entire 30.16 per cent entitlement of the proposed underwritten renounceable rights issue by MapletreeLog announced recently. And it may take up excess rights units, subject to unitholders’ approval at an extraordinary general meeting on July 18.

Last month, MapletreeLog said it was planning to raise nearly S$607 million through a renounceable rights issue. It is issuing about 831 million rights units at 73 Singapore cents each. Unit holders will get three rights for every four units held.

The net proceeds will be used to finance or refinance the acquisition of certain properties by MapletreeLog, to repay bank borrowings and for working capital. - CNA/ms


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