Frasers Logistics & Commercial Trust Acquires Three Freehold Logistics And Industrial Properties In Australia
June 13, 2022 – Frasers Logistics & Commercial Trust announced the proposed acquisition of three fully leased freehold logistics and industrial properties in Truganina, Victoria, Australia from an unrelated third party, West Industry Park Pty Ltd.
he property purchase price for the New Properties is A$61.0 million (S$60.4 million) (US$42.76 million).
The Portfolio Purchase Price was negotiated on a willing buyer and willing seller basis and taking into consideration the independent valuation conducted by Savills Valuations Pty Ltd at A$61.1 million (US$42.8 millioN) as at 31 May 20225. The Savills valuation is based on the capitalisation and discounted cash flow approaches and referenced comparable market transactions. The Acquisition is expected to complete by the third quarter of 2022.
Mr. Robert Wallace, Chief Executive Officer of the REIT Manager, said, “This investment marks a continuing deployment of our divestment proceeds from the sale of Cross Street Exchange in Singapore and will provide FLCT with further exposure to the attractive Melbourne logistics and industrial market.”
“The New Properties are of smaller tenancy sizes, providing a product offering that targets a differentiated tenancy base, making the New Properties a complementary fit with FLCT’s existing industrial portfolio. With the New Properties being fully leased with a long WALE of 6.6 years and built-in annual rental escalations, the New Properties will contribute to FLCT’s objective of providing stable long term returns to unitholders.”
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