Singapore-based real estate investment trust, Maple Tree Logistics, has announced the proposed acquisition of a Coles distribution centre in Heathwood, Brisbane.

The property purchase consideration is reportedly $105 million.

“This acquisition will bring [Mapletree Logistics Trust’s] portfolio in Australia to ten properties with an [assets under management] AUM of over SGD $600 million [AUD $606.7 million],” said CEO, Ng Kiat. “With a [weighted average lease expiry] WALE of 4.3 years and fixed annual escalations, the acquisition will provide stable and growing income to our unitholders.”

The property is 100 per cent leased to Coles Supermarkets until January 2023 (remaining lease term of 4.3 years) and supports Coles’ operations in Queensland and the northern New South Wales.

The Property has been valued at $105 million by Savills as at 3 October 2018 based on the net income and discounted cash flow methods. Funding of the acquisition is expected to generate an initial net property income yield of 5.7 per cent at the property purchase consideration of $105 million.

Maple Tree Logistics said in a statement that Brisbane is well-placed due to a growing logistics market underpinned by robust domestic consumption. Continued population growth, rising incomes and higher tourist numbers have spurred retail turnover and demand for logistics properties, while current supply of prime logistics properties remains tight.

Land area is 151,600 square metres with expansion land that can potentially yield up to an additional 19,000 square metres.

According to Maple Tree Logistics, the property comprises a single-storey ambient warehouse facility with ancillary office space, and is strategically located along the Logan motorway which provides direct access to Brisbane Airport, Brisbane Port and the Central Business District (CBD).

Last month, Coles entered an agreement with Witron Australia to develop two new automated ambient distribution centres for Coles over a five-year period.