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Name of Announcer *
MAPLETREE LOGISTICS TRUST
Company Registration No.
NA
Announcement submitted on behalf of
MAPLETREE LOGISTICS TRUST
Announcement
respect to *
MAPLETREE LOGISTICS TRUST
is
submitted
with
Announcement is submitted by *
GIAM LAY HOON
Designation *
COMPANY SECRETARY, MAPLETREE LOGISTICS TRUST MANAGEMENT LTD. (AS
MANAGER OF MAPLETREE LOGISTICS TRUST)
Date & Time of Broadcast
21-Nov-2005 18:10:53
Announcement No.
00065
>> Announcement Details
The details of the announcement start here ...
Announcement Title *
Acquisition of 7 Blocks of Warehouse / Distribution Centres and 1 Office Block at Ouluo
Logistics Centre at 785 and 909 Yuanhang Road, Jichang Town, Pudong New District,
Shanghai, People's Republic of China - Presentation Slides
Description
Please see attached.
Attachments:
21-11-2005_-_Purchase_of_Property_-_Ouluo_-_Presentation_Slides.pdf
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Acquisition of Ouluo Logistics Centre near
Pudong Airport
21 November 2005
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ƒ Details of Ouluo Logistics Centre:
¾ Ouluo Logistics Centre – maiden China acquisition
¾ Ouluo’s near fast growing Pudong Airport
ƒ Impact on MapletreeLog
¾ Under-rented, room for growth
¾ Healthy total risk-adjusted returns
¾ Acquisition is yield accretive
¾ Reduced tenant concentration
¾ Diversified asset mix
¾ Long average lease duration
¾ Unexpired lease of underlying land
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ƒ Purchase price: RMB 120m (S$25.3m)
ƒ EBITDA yield: 6.5% (ungeared);
EBDA yield: 8.1% (50% gearing)
ƒ Appraised value: RMB 128 million by Savills
(Hong Kong) dated 30 Oct 2005
ƒ Land tenure: expiry in 2052
ƒ Land area: 82,795 sqm
GFA: 33,246 sqm
Lettable area: 33,246 sqm
The Property comprises 7 blocks of single
storey steel-framed warehouses and one
ancillary office block used by the 3PL and
distribution centre operators. It is located at
785 and 909 Yuanhang Road, Jichang Town,
Pudong New Area, Shanghai, The PRC.
ƒ Lease terms: Sale with assigned tenancies.
First year rental at RMB 8.6m (or S$2.164m) pa
with stepped up rental increases in the
subsequent years of lease
ƒ Tenants: DHL, Sagawa, Naya Logistics &
Shanghai Zhong Chuang International
ƒ Outgoings: Tenants pay property maintenance
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ƒ Ouluo is a rare find given the
scarcity of investible grade
logistics assets, more so in a
location in such close proximity to
as strategic a transport hub as the
rapidly growing Pudong Airport.
WaiGaoJiao
port
Port
Zone
Huang Pu
River
Yangtze
River
Yang Pu
Bridge
Pudong
Nan Pu
Bridge
Shanghai
railroad
station
Airport
Magnetic Suspension
Train
Xu Pu
Bridge
Pudong
Airport
Ouluo
Logistics
Centre
Yangshan
deepsea port
ƒ There is limited supply of logistics
facilities in the vicinity and limited
new supply in the near future
ƒ Shanghai presents 34% share of
China’s air cargo market (66% of
international and 16% of domestic
air cargo) and seen CAGR of 25%
1993-2004.
ƒ Civil Aviation Administration of
China projects 12% pa growth in
China air cargo traffic in 20062010.
Pudong Railway
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Market shares of Intra-Asia, Asia-Europe Airfreight in 2003
Others
26%
DHL
27%
ƒ We see the growth potential of this
under-rented property
ƒ Lease structures are relatively
short, giving room for rental
reversions to move closer to
prevailing market rates
ƒ Current monthly rental rates for
Ouluo is about RMB 21 psm vs
RMB 24-28 psm for non-bonded
logistics space in the Pudong
Airport area
TNT
7%
UPS
15%
Fedex
25%
ƒ Existing blue chip third party
logistics (3PL) tenants DHL,
Sagawa and Naya are due to renew
the lease in a few years
Source: Deutsche Post
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Property yields & spread
of total return over risk-free
Assume asset gearing of
0%
35%
50%
70%
1
Initial EBDA (after 6.5%
tax and interest)
7.0%
Total Return
(over 5 years)
9.8%
Spread over 10year government
bond2
8.9%
5.7%
6.6%
8.1%
11.3%
8.1%
11.4%
15.2%
12.0%
ƒ We plan to fund Ouluo acquisition with
substantial debt, in line with a capital
management policy we have articulated
earlier on for our overseas properties.
ƒ While consolidated leverage level will
remain conservative, we plan to focus
more debt towards our overseas assets
to maximise the natural hedge and tax
shelter (if available), especially if
funding costs is also advantageous
ƒ On this basis, the initial EBDA of 7.011.4% compares favorably compared to
our implied NPI yield of 4.1% (based on
S$1.03).
ƒ Spread of total return (initial yield +
organic growth) over risk-free of 6601,200 bps for Ouluo is higher than the
equivalent spread of 480-500 bps for
logistics assets in Singapore.
1 EBITDA yield
2 RMB denominated 10-year government bond yield of 3.154%
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First Year
Ouluo Logistics Centre
Ungeared EBITDA yield
6.5%
EBDA at 35% gearing
7.0%
EBDA at 50% gearing
8.1%
EBDA at 70% gearing
11.4%
Implied NPI yield of
MapletreeLog (based on
unit price of S$1.03)
~4.1%
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Ouluo brings in blue chip 3PL tenants DHL and Sagawa
To 10 Tenants by Gross Revenue for Sep 2005 (New Portfolio)
14%
12.9%
12.3%
12%
10%
Before Acquisition
After Acquisition
8.7%
8.3%
8%
6%
5.7%
5.4%
5.5%
5.3%
5.2%
5.0%
4.3%
4.1%
4%
4.0%
3.9%
3.9%
3.7%
3.9%
3.7%
2%
0%
Teck Wah
Vopak
Menlo
DG Logistik Expeditors
KLW Wood
Armstrong
Ban Teck
Han
UPS
* Reflects gross revenue contribution for the month of Sep 2005
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After the acquisition*
Before the acquisition*
Gross Revenue Contribution by Trade Sector (Before acquisition)
FTZ 3PL
21.9%
Oil & Chemical Logistics
15.2%
Gross Revenue Contribution by Trade Sector (after acquisition)
FTZ 3PL
21.0%
Oil & Chemical Logistics
14.5%
Industrial Warehousing
17.1%
Industrial Warehousing
17.8%
Non-FTZ 3PL
22.6%
Non-FTZ 3PL
26.1%
Distribution Centre
14.2%
Distribution Centre
14.8%
Food & Cold Storage
7.6%
Food & Cold Storage
7.2%
* (1) Based on revenue for the month of September 2005 for the initial 15 + 3 new properties announced in Oct and contracted
first year monthly rental for the new properties.
(2) The new property has been classified under Non-FTZ 3PL
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Lease Expiry Profile by Income
90%
84.3%
82.7%
80%
70%
60%
Before Acquisition
After Acquisition
50%
40%
30%
20%
9.7%
10%
2.1%
9.3%
3.8%
2.0%
6.0%
0%
Expiring in 2006
Weighted average lease term to expiry
Expiring in 2007
Expiring in 2008
Expiring after 2008
Initial 15 properties
plus SNP, Kenyon + APICO
19 properties
after Ouluo
8.5 years
8.3 years
* From Sep 05
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Remaining Years to Expiry of Underlying Land Lease
80%
67.9%
70%
Before Acquisition
% of Total Lettable Area
60%
65.3%
After Acquisition
50%
40%
30%
20%
16.0%
12.6%
10%
7.3%
7.0%
5.4%
6.8%
5.2%
6.5%
0.0%
0%
0 - 20 yrs
21 - 30 yrs
31 - 40 yrs
Weighted average of unexpired lease term of
underlying land
41 - 50 yrs
51 - 60 yrs
> 60 yrs
Initial 15 properties
plus SNP, Kenyon + APICO
19 properties
after Ouluo
59.3 years
58.9 years
* Reflects year to expiry from 1 Dec 2005
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The value of units in MapletreeLog (“Units”) and the income from them may fall as well as rise.
Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates.
An investment in Units is subject to investment risks, including the possible loss of the
principal amount invested. Investors have no right to request the Manager to redeem their Units
while the Units are listed. It is intended that Unitholders may only deal in their Units through
trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market
for the Units. The past performance of MapletreeLog is not necessarily indicative of its future
performance.
This release may contain forward-looking statements that involve risks and uncertainties.
Actual future performance, outcomes and results may differ materially from those expressed in
forward-looking statements as a result of a number of risks, uncertainties and assumptions.
Representatives examples of these factors include (without limitation) general industry and
economic conditions, interest rate trends, cost of capital and capital availability, competition
from similar developments, shifts in expected levels of property rental income, changes in
operating expenses, including employee wages, benefits and training, property expenses and
governmental and public policy changes and the continued availability of financing in the
amounts and the terms necessary to support future business. You are cautioned not to place
undue reliance on these forward looking statements, which are based on current view of
management on future events.
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