Frasers Logistics & Commercial Trust To Divest Cross Street Exchange
January 25, 2022 – Frasers Logistics & Commercial Trust announced that it has entered into a sale and purchase agreement with an unrelated third-party purchaser, for the sale of the leasehold property at 18, 20 and 22 Cross Street, Singapore (Cross Street Exchange) for a consideration of S$810.8 million (US$603.17 million).
The Consideration represents a 28.3% premium to Cross Street Exchange’s book value of S$632.0 million as at 30 September 2021. The proposed divestment of this non-core leasehold Central Business District (“CBD”) commercial property is in line with the REIT Manager’s proactive asset management and portfolio rebalancing strategies, providing opportunities to re-weight FLCT’s portfolio into the logistics and industrial asset class. Post-divestment, FLCT’s portfolio weighting2 towards logistics & industrial will increase to 66.9%, from 61.1% previously.
The proposed divestment will also enhance FLCT’s portfolio metrics, with a higher overall portfolio occupancy rate of 97.1% and a longer weighted average lease expiry profile (“WALE”) of 5.0 years, from 96.2% and 4.8 years respectively, prior to the divestment4.
Mr. Robert Wallace, Chief Executive Officer of the REIT Manager, said, “The divestment of Cross Street Exchange is transacted at an attractive premium over its book value, re-weighting our portfolio towards logistics and industrial properties. The divestment will enhance our portfolio metrics with a higher overall portfolio occupancy rate and longer WALE and will provide FLCT with significant financial strength and flexibility.”
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