Why Mapletree Industrial Trust's recent divestment was a good move

It was sold above its purchase price of $13.2m.

Mapletree Industrial Trust’s (MIT) share price has softened 3.5% since its YTD peak on 2 Jun this year, versus the FTSE ST REIT Index’s 0.6% gain.

“We believe this pullback presents buying opportunities for investors, as we expect MIT to register a robust 4.9% growth in DPU in FY18,” OCBC Investment Research said.

MIT also recently announced its proposed divestment of its 65 Tech Park Crescent property for S$17.7m to Concrete Innovators Co. Pte. Ltd, slightly above its latest valuation of $17.6m as at 31 Mar 2017 but significantly above its purchase price of $13.2m.

The brokerage firm said, “We are positive on this transaction as the 10-year master lease with Metech International Ltd at this single-user building will be expiring in Nov this year, and there would likely be efficiency loss and downtime if the property was converted to a multi-tenanted building.”

Meanwhile, Singapore’s electronics exports jumped 23.3% YoY for the month of May, strongly beating consensus’ expectations. We believe this augurs well for MIT’s outlook.

Also Read

One Sophia sells 30% of units at weekend launch

SLA launches tender to revitalise Tanjong Katong Complex

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit