Singapore-listed Mapletree Logistics Trust (MLT) is investing S$1.09bn (€682M) to buy nine logistics facilities in Malaysia, Vietnam and China, along with a remaining 50% interest it doesn’t already own in 15 China properties.

The properties are currently held in subsidiaries of the sponsor, Mapletree Investments, and subsidiaries of Japan’s Itochu Corporation.

The facilities which MLT had contracted to acquire had a committed occupancy of 94.7%.

MLT said the acquisitions would strengthen its position in the pan-Asian logistics markets, giving it a foothold in 51 cities housing more than 150m people.

“The prominent role that delivery services played during the COVID-19 pandemic has highlighted the value of modern logistics facilities located in close proximity to population centres and transportation networks,” MLT said.

Supply chain shocks due to ongoing trade tensions had prompted many global manufacturers to diversify their supply chains across Asia in a multi-country strategy.

“Companies are mostly choosing to adopt a “China Plus” strategy, keeping production bases “in China for China” to serve the local market, while building incremental capacity elsewhere,” MLT said.

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