How Singapore's logistics firms will benefit from Shanghai free trade zone

But impact may be limited.

According to Barclays, it would expect the Singapore logistics property operators that have already established presences in the Shanghai Free Trade Zone – Mapletree Logistics Trust and Global Logistics Properties (GLP, not rated) – to benefit from further liberalisation of the FTZ. 

However, each company’s exposure to Shanghai FTZ is small at less than 1% of their total property values.

Their exposures are now limited to Waigaoqiao area, the largest component of the FTZ and the major carrier of the pilot reforms, but this exposure could expand into the other FTZ areas, such as the Yangshan Bonded Port and the Pudong Airport Integrated Bonded Area in future. 

Here's more:

MLT: China makes up 25% of MLT’s asset portfolio of 3.0mn sqm across seven Asian countries that it values at S$4.1bn of which its ISH WaiGaoQiao property makes up 1.3% of MLT’s total gross floor area (GFA) and 0.9% of its value.

It is MLT’s only FTZ property in its China portfolio, which consists mainly of industrial warehousing and
distribution centres and was acquired in late 2008.

GLP: China makes up 56% of its property portfolio of 21.4mn sqm across 66 cities that it values at US$16.4bn. Its GLP Park Waigaoqiao is located in Shanghai Waigaoqiao Free Trade Zone and offers high-quality facilities in the bonded area with a total planned site area of 150,020sqm.

The total building area for Phase I is 54,000sqm and has just been put into operation in July 2013. An additional 70,000sqm of land is held for development with 81,000sqm planned in GFA. This makes up 0.6% of GLP’s total GFA.

Ascendas REIT: The company just recently completed its forward purchase of a business park in the Jinqiao Economic and Technological Zone, adjacent to Lujiazui Financial and Trade Zone on the west, Waigaoqiao Free Trade Zone on the North and Zhangjiang High-Tech Park on the South.

This property makes up c2% of AREIT’s total property value and is one of the only two China properties in AREIT’s mainly Singaporean industrial space portfolio.