SINGAPORE (May 16): The manager of Frasers Logistics & Industrial Trust (FLT) says it is divesting the warehouse and hardstand components of 610 Heatherton Road in Victoria, Australia, to Mack Bros Enterprises for A$15 million ($14.2 million).

The deal represents a 11.1% premium to the property as at 15 April this year, and is subject to FLT’s successful registration of its subdivision plans for the property with the relevant authorities.

610 Heatherton Road sits on an irregular 3.7 ha site and comprises an office component, a deck car park, a warehouse, and an extensive hardstand area.  

Given the specialised nature of the property and after exploring different options, FLT intends to subdivide the property into two lots – with the warehouse and hardstand being a 2.9 ha lot, and the smaller residual site being a lot of approximately 0.8 ha.  

In a Thursday filing, FLT’s manager says it will continue to actively explore options to sell the latter lot comprising the office and deck car park.  

The deal is expected to book net proceeds of about A$14.1 million for FLT, which may be used for funding potential acquisition opportunities, reducing existing debt, or other general corporate purposes.

Units in FLT closed 2 cents lower at $1.15 on Thursday.