Singapore’s Mapletree Industrial Trust Sells Three Properties

Singapore’s Mapletree Industrial Trust (MIT) Management Ltd., on Friday said that DBS Trustee Limited, in its capacity as trustee of MIT, has signed an agreement for the sale of three industrial properties in Singapore for a consideration of $412.65 million with Brookfield Asset Management.

Brookfield is a leading global alternative asset manager with over US$1 trillion of assets under management. The three industrial properties are “The Strategy, The Synergy and the Woodlands Central Cluster.”

The divestment consideration represents a 2.6% premium over the independent valuations of the Properties at $402.01 million as at 31 March 20251, and a 22.1% increase from the original investment cost of the Properties at S$438.4 million. 

Maple Industrial Trust CEO Ler Lily said that this strategic divestment aligns with our proactive asset management strategy of optimising portfolio composition while maintaining financial agility to seize new value-creating investment opportunities that will create sustainable returns.

Following the completion of the divestment, the 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,” Lily said.

Pending the redeployment of the proceeds for asset enhancement initiatives, acquisitions or redevelopment projects, the net proceeds from the Proposed Divestment will be used to repay outstanding borrowings in the interim and accordingly, reduce aggregate leverage ratio and borrowing costs.

On a pro forma basis, the transaction is expected to lower MIT’s aggregate leverage ratio from 40.1% as at 31 March 2025 to 37.0%3 and improve its interest coverage ratio for the trailing 12 months from 4.3 times to 5.1 times.

With ample debt headroom, this will enable MIT to build significant firepower to seize new value-creating investment opportunities. The proposed divestment is expected to complete by the third quarter of 2025. 

About the Properties 

The Strategy, Business Park Building, located within the International Business Park, comprises two tower buildings of six and 12 storeys. The two tower buildings are linked by an atrium lobby with a gross floor area (GFA) of 725,171 sq. ft.

The Strategy accounted for approximately 3.3% of MIT’s gross revenue for the financial year ended 31 March 2025.

The Synergy, Business Park Building, located within the International Business Park, comprises a 10-storey tower and a five-storey podium. The property has a GFA of 445,231 sq. ft. The Synergy accounted for approximately 1.3% of MIT’s gross revenue for FY24/25. 

Woodlands Central Cluster comprises a seven-storey and a five-storey Hi-Tech Buildings. It completed an asset enhancement initiative (AEI) in July 2013 and the AEI included the development of a six-storey extension wing, multi-storey car park and canteen, which added approximately 70,000 sq. ft of GFA. With a total GFA of 601,674 sq. ft, the successful repositioning of the Woodlands Central Cluster into a high-tech industrial cluster for biomedical and medical technology companies provided an uplift in its capital value.