Singapore Corporate News - 14 Jan 2008

MapletreeLog buys warehouse in S Korea

MAPLETREE Logistics Trust (MapletreeLog) yesterday said it has agreed to acquire a warehouse in South Korea for 11.6 billion won (S$17.7 million), which will add 0.02 Singapore cents to its pro-forma distribution per unit.

The property is a two-storey warehouse/ distribution centre located in the established logistics cluster of Kyungki. It has a temperature-controlled section and a three-storey office building. Valued at 13.5 billion won, the property is located on freehold land, with a GFA of about 10,911 sq m.

The vendor of the property is Oakline Co, which will lease back the property for a period of four years. MapletreeLog intends to fund the acquisition wholly by debt, but does not rule out alternative means of funding as well.

'We are very pleased with our first acquisition in South Korea as we continue to expand our footprint in Asia, diversifying our revenue streams across various countries,' said Chua Tiow Chye, CEO of Mapletree Logistics Trust Management, which manages the trust. 'This will be the sixth Asian market which MapletreeLog will have assets in.' Mr Chua added that MapletreeLog will continue to grow its presence in the South Korean logistics real estate sector, seeing that it is a relatively well-developed market.

SPH Q1 net profit rises 1.3%

Singapore Press Holdings said on Monday its first quarter net profit rose 1.3 per cent from a year ago, held back by a sharp fall in investment income and higher operating costs.

SPH posted a net profit of $111.9 million (US$78.3 million) in the three months ended November 30, compared with $110.5 million a year earlier.

Operating revenue grew 14.7 per cent to $312.1 million, with newspapers and magazine operations contributing $261.3 million, an increase of 8.2 per cent.

Revenue from property rose 70 per cent to $43.5 million, while investment income fell 67 per cent to $9.8 million.

Operating costs rose 11.8 per cent to $188.5 million.

Looking ahead, SPH Chief Executive Alan Chan said earnings were expected to be satisfactory for the current year, with advertising revenue to be driven by a Singapore economy growing at a moderate pace.