The Straits Times | Mar 23, 2013
Mapletree Logistics Trust (MLT) is selling a factory in Woodlands for $15.5 million to equipment designer and supplier specialist Advanced Holdings.
The sale of the four-storey building is expected to be completed by May, according to two statements yesterday.
MLT bought the factory in 2007 for $10.3 million. It was valued at $11 million in March last year. The net disposal gain of about $4.95 million from the sale will go to unit holders.
A subsequent announcement will be made when the final distributable amount is determined after clarification over the tax treatment for disposal gain.
The sale is expected to have minimal impact on MLT's net asset value. The trust's 110 logistic assets in the region had a total book value of $4.1 billion as of Dec31 last year.
Advanced Holdings said in a statement that it will fund the purchase with internal resources and bank borrowings.
The factory at 30 Woodlands Loop has a built-up area of 8,300 sq m and a leasehold tenure of about 60 years that began on May1, 1995.
Advanced Holdings will move all its operations from its premises in Senoko South Road.
The new space will cater for expansion plans rather than relying on rented premises and relocating each time the lease term expires.
Subject to approval by JTC Corporation, the company also intends to rent out any excess space before its expansion plans take off.
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