Frasers Logistics & Commercial Trust To Divest Three Australia Properties
December 11, 2020 – Frasers Logistics & Commercial Trust announced that it has entered into sale and purchase agreements to divest its ownership in three leasehold industrial properties in South Australia.
The total price consideration for the properties is A$29.6 million (US$22.4 million).
The Consideration represents a 19.4% premium to the South Australia Porperties’ total book value of A$24.8 million (US$18.8 million) as at 30 September 2020. It is also above the total original purchase consideration of A$28.7 million (US$21.7 million) at FLCT’s initial public offering in 2016.
The proposed divestment is in line with the REIT Manager’s proactive asset management and portfolio rebalancing strategies.
Mr. Robert Wallace, Chief Executive Officer of the REIT Manager, said, “The proposed divestments of three non-core leasehold properties in South Australia, with an attractive premium relative to market value, is part of our proactive asset management strategy and in line with our continuing focus on core industrial markets on the eastern seaboard of Australia. The divestment proceeds will also provide us with greater financial flexibility to manage FLCT’s capital.”
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