Untitled - Mapletree Logistics Trust

The properties in MLT’s initial property portfolio on the Listing Date are located in Singapore,
which exposes MLT to economic and real estate market conditions in Singapore (including
increased competition in the real estate market).
The Properties are situated in Singapore. As a result, MLT’s Gross Revenue and results of operations
depend, to a large extent, on the performance of the Singapore economy. A decline in Singapore’s
economy could adversely affect MLT’s results of operations and future growth.
The performance of MLT may also be adversely affected by a number of local real estate market
conditions, such as the attractiveness of competing logistics properties or an oversupply of logistics
properties or reduced demand for logistics properties.
MLT’s acquisition of the Properties may be subject to risks associated with property
acquisitions.
While the Manager believes that reasonable due diligence investigations have been conducted with
respect to the Properties prior to their acquisition, there can be no assurance that the Properties will not
have defects or deficiencies requiring significant capital expenditures, repair or maintenance expenses,
or payment or other obligations to third parties, other than those disclosed in this Prospectus. The
experts’ reports that the Manager has relied upon as part of its due diligence investigations of the
Properties may contain inaccuracies and deficiencies, as certain building defects and deficiencies may
be difficult or impossible to ascertain due to the limitations inherent in the scope of the inspections, the
technologies or techniques used or other factors.
In addition, there may be breaches of laws and regulations (including those in relation to real estate) or
non-compliance with certain regulatory requirements, in respect of some of the Properties, which the
Manager’s due diligence investigations did not uncover. As a result, MLT may incur additional financial
or other obligations in relation to such breaches or non-compliance.
In particular, the representations, warranties and indemnities granted in favour of MLT by the Sponsor
and the vendors of certain Properties are subject to limitations as to their scope and as to the amount
and timing of claims which can be made thereunder. There can be no assurance that MLT would be
entitled to be reimbursed under such representations, warranties and indemnities for all losses or
liabilities suffered or incurred by it as a result of its acquisition of the Properties.
MLT will hold the Properties on leases from Jurong Town Corporation (‘‘JTC’’), the Housing and
Development Board (the ‘‘HDB’’) and the SLA, and these leases contain certain provision that
may have an adverse effect on the financial condition and results of operations of MLT.
The Trustee, on behalf of MLT, will hold the Properties pursuant to separate leases from JTC, HDB and
SLA, each of which contains a clause that requires the Trustee to surrender free of cost to the
Singapore Government portions of the respective Properties that may be required in the future for
certain public uses, such as roads, drainage and other public improvements. There have been previous
instances in which lessees of land from JTC have been required to surrender portions of their land to
the Singapore Government for roads, without compensation, pursuant to similar provisions in the
relevant land leases. If MLT is required to surrender a portion of one of the Properties to the Singapore
Government, it may have an adverse impact on the Gross Revenue and the value of MLT’s property
portfolio.
The Properties may be affected by contamination and other environmental issues.
The Properties and other properties owned by MLT may from time to time be affected by contamination
or other environmental issues which may not previously have been identified and/or rectified. This raises
a number of risks including:
) the risk of prosecution by relevant authorities;
) the requirement for unbudgeted additional expenditure to remedy such issues; and
) the adverse impact on the financial position of tenants arising from the above, affecting their ability
to trade and to meet their tenancy obligations.
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