Mapletree Logistics Trust Expands Presence in India with Strategic Acquisition of Grade A Warehouse in Mumbai

Key Highlights

• Acquisition Price: INR3,888 million (~S\$53.6 million)
• Asset: Newly completed, freehold Grade A warehouse with green building specifications
• Location: Bhiwandi, Mumbai – a prime logistics hub with excellent connectivity
• Tenancy: Fully leased to two leading listed online food and grocery delivery companies
• Lease Profile: Weighted average lease term of 3.9 years, with built-in annual rent escalations
• Funding: 100% debt-funded transaction
• Expected Completion: 4Q FY25/26
• Impact on Leverage: Aggregate leverage ratio to increase slightly to 40.9% (from 40.7%)
• Portfolio Expansion: MLT’s network in India expands from Pune and Delhi to Mumbai
• Independent Valuation: Property independently valued at INR3,949 million

Detailed Analysis and Insights for Investors

Strategic Importance of the Acquisition

Mapletree Logistics Trust (MLT) has announced a significant move to strengthen its footprint in India’s rapidly growing logistics sector by acquiring a newly built, freehold Grade A warehouse in Bhiwandi, Mumbai. This acquisition is strategically important as it marks MLT’s entry into Mumbai, expanding its existing presence from Pune and Delhi, and positions the REIT to support its tenants’ regional expansion amidst India’s booming domestic consumption and industrial growth.

India’s Logistics Industry – Growth Outlook

India, now the world’s fifth-largest economy, is projected to sustain robust growth with GDP forecasted at 6.6% in 2025 and 6.2% in 2026. The country stands as a key beneficiary of global supply chain realignment and trade uncertainties. With relatively low GDP per capita compared to other developing economies, India offers significant room for further expansion. This acquisition allows MLT to capture the upside from increasing demand for modern logistics infrastructure as supply chains evolve and consumption rises.

Prime Location – Bhiwandi, Mumbai

The warehouse is located in Bhiwandi, Mumbai’s most established warehousing sub-market, 70 km from the city centre. Its proximity to major transport corridors (NH-48, NH-160, Samruddhi Mahamarg) ensures excellent connectivity to Mumbai, key ports, and airports. The property is also within Bhiwandi’s toll-free zone, providing substantial cost advantages to tenants. Connectivity is expected to further improve with the upcoming Virar–JNPT expressway and completion of the Western Dedicated Freight Corridor (March 2026), which will cut cargo transit times between Mumbai and Delhi from 3–4 days to just 18–24 hours—a potential game-changer for logistics operations.

Asset Quality – Grade A, Green-Certified Facility

Completed in August 2025, the warehouse comprises two blocks totalling 79,378 sqm of net lettable area. It features modern specifications including 12.5m floor-to-ceiling height, strong floor loading capacity (70 KN/sqm), FM2 floor flatness, and fire sprinkler systems. Green features such as full LED lighting, roof skylights, insulation, and readiness for solar panel installation have earned it IGBC Gold pre-certification. This positions MLT’s portfolio for sustainability-conscious tenants and future regulatory requirements.

Stable and Growing Income Stream

The property is fully leased to two leading listed food and grocery e-commerce companies, serving as their main distribution centre for Mumbai. Both tenants have invested heavily in cold storage fit-outs, indicating long-term operational commitment. With a weighted average lease term of 3.9 years and built-in annual rent escalations, this acquisition will provide MLT with a stable and increasing income stream. The property’s independent valuation (INR3,949 million) is slightly above the acquisition price, underscoring its value.

Funding and Financial Impact

The acquisition will be 100% funded by debt, with transaction costs (including stamp duty, advisory fees, and a 1% acquisition fee to the Manager) totalling approximately INR159.4 million. Upon completion, MLT’s aggregate leverage ratio will increase slightly to 40.9% from 40.7%, remaining within prudent limits. The acquisition is expected to be accretive to distribution per unit on a historical pro forma basis, which could be price-sensitive information for shareholders.

Potential Share Price Drivers

• Accretive Acquisition: The deal is expected to enhance distribution per unit, a key metric for REIT investors.
• Expansion into Mumbai: Entry into India’s prime logistics market may drive future growth, reduce portfolio risk, and appeal to tenants seeking regional distribution hubs.
• High Quality, Green-Certified Asset: Modern, sustainable facilities attract high-quality tenants, underpinning long-term rental income.
• Debt Funding: While leverage increases slightly, it remains within industry norms. Investors should monitor for any future capital raising or refinancing needs.
• Strong Tenancy Profile: Fully leased to blue-chip tenants with significant operational investments signals stable cash flow and reduced vacancy risk.

Important Notice for Shareholders

Shareholders should note that this acquisition introduces new debt, increases leverage slightly, and is expected to be accretive to earnings. The entry into Mumbai’s logistics market and the addition of a modern, green-certified facility may positively influence MLT’s valuation and share price, especially as the Indian logistics sector continues to expand rapidly. However, as with all acquisitions, there are execution risks and market uncertainties that could affect future performance.

About Mapletree Logistics Trust

MLT is Singapore’s first Asia Pacific-focused logistics REIT, listed since 2005 with a diversified portfolio spanning nine markets and S\$13.0 billion in assets under management as of December 2025. The trust’s principal strategy is to invest in income-producing logistics real estate and related assets.

Contact for Further Information

Ms Lum Yuen May
Director, Investor Relations
Tel: +65 6659 3671
Email: [email protected]

Disclaimer

This article is for informational purposes only and does not constitute an offer to purchase or subscribe for units in Mapletree Logistics Trust. The value of units and income from them may rise or fall. Past performance is not indicative of future results. Investors are advised to exercise caution and consult their financial advisors before making investment decisions. Forward-looking statements involve risks and uncertainties—actual results may differ materially from those expressed or implied.

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