The manager of Mapletree Logistics Trust (MLT) has announced that the trust’s wholly-owned subsidiary MapletreeLog Seastar (Xian) has entered into an equity purchase agreement with an unrelated third party buyer to divest 100% of its equity interest in Mapletree Logistics Warehouse (Xian), which owns Mapletree Xi’an Logistics Park.

The sale consideration is estimated to be RMB70.5 million ($13.1 million), 0.7% above the property’s valuation of RMB70 million as at March 31.

Comprising a single-storey warehouse with a four-storey office and a two-storey warehouse, Mapletree Xi’an Logistics Park has a building age of almost 20 years and a net lettable area of approximately 22,876 sq m.

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Capital released from the divestment will provide MLT with greater financial flexibility to pursue investment opportunities in high-specification, modern logistics facilities with higher growth potential, the manager said in a filing.

The proposed divestment is expected to be completed by 3QFY2024/FY2025. It is not expected to have a material impact on MLT’s net asset value and net property income for FY2024/FY2025. Following the divestment, MLT’s portfolio will consist of 186 properties.

Units in MLT closed at an unchanged $1.32 on June 12.