[SINGAPORE] Mapletree Industrial Trust (MIT) divested three of its Singapore industrial properties to Brookfield Asset Management for S$535.3 million, the real estate investment trust’s (Reit) manager announced on Friday (May 16).
The assets – The Strategy, The Synergy and the Woodlands Central Cluster – were sold at a 2.6 per cent premium over their combined independent valuation of S$521.5 million. The sale price also represents a 22.1 per cent increase from MIT’s original investment cost of S$438.4 million.
The transaction is expected to complete by the third quarter of 2025.
Lily Ler, chief executive officer of MIT’s manager, said: “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.”
She said that despite the divestment, Singapore-based assets would still be a key component of the Reit’s portfolio, making up about 44.4 per cent of its assets under management.
The manager said that the net proceeds from the sale would be used initially to pare down debt. On a pro forma basis, the divestment is expected to reduce MIT’s aggregate leverage ratio from 40.1 per cent to 37 per cent, and improve its interest coverage ratio from 4.3 times to 5.1 times.
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The divestment would offer the Reit sufficient financial flexibility to pursue asset enhancement initiatives, acquisitions or redevelopment projects, as well as to fund opportunities for value creation, it added.
Of the three divested properties, The Strategy and The Synergy are located within the International Business Park in Jurong East. The Strategy comprises two towers of six and 12 storeys. It accounted for about 3.3 per cent of MIT’s revenue in FY2025, the manager said. The Synergy, with a gross floor area of 445,231 square feet (sq ft), accounted for 1.3 per cent of revenue in the same period.
Dylan Chua, CBRE’s director of industrial and logistics capital markets services, said: “The transaction underscores the confidence in the strength and growth potential of International Business Park.”
He noted that with the upcoming completion of the Jurong Town Hall MRT station, along with the ongoing transformation plans of Jurong Lake District, more businesses are likely to be attracted to the area.
The third asset, Woodlands Central Cluster, comprises two buildings and completed a major asset enhancement in 2013. The cluster has been repositioned as a hub for biomedical and medical technology firms, the manager said, with a total gross floor area of 601,674 sq ft, and contributed 1.7 per cent of FY2025 revenue.
This is the largest industrial transaction thus far in 2025, according to real estate investment firm CBRE who brokered the deal.
Rimon Ambarchi, CBRE’s head of industrial and logistics services for Singapore and South-east Asia, said: “Despite global uncertainty, we continue to observe robust investment interest in Singapore’s industrial properties, bolstered by the country’s solid fundamentals, strong debt market and attractive yield spreads.”
