Frasers Property acquires Alpha Industrial's logistics business and assets for $468 mil

Frasers Property acquires Alpha Industrial's logistics business and assets for $468 mil

Samantha Chiew
19/02/18, 08:42 am

SINGAPORE (Feb 19): Frasers Property is acquiring a property portfolio of 22 assets that are mainly owned and managed by Alpha Industrial Holding in Luxembourg, as well as the project and asset management business of Alpha Industrial through the purchase of 100% of Alpha Industrial GmbH & Co in Cologne, Germany.

The total consideration for the portfolio and business acquisition is €285.2 million ($467.7 million)

Alpha Industrial is a German-based logistic and industrial developer.

The acquisition comprises a portfolio of 16 completed logistics and light industrial facilities, with a combined gross leasable area (GLA) of 393,800 sqm located in key industrial and logistics hubs in Germany and Austria.

The portfolio has a tenant base of reputable national and international corporations, with a weighted average lease expiry (WALE) of 6.2 years, which will contribute stable and recurring income to the group.

The acquisition also includes six logistical projects which are acquired as development and forward purchases with a total additional GLA of approximately 162,500 sqm.

The aggregate valuation of the properties as at Dec 31 2017 by BNP Paribas Real Estate is approximately $953.25 million.

Upon completion of the acquisition, the group’s portfolio will grow to €1.6 billion and over 1.3 million sqm of GLA.

The sale and purchase agreements will be signed by entities of its business unit, Frasers Property Europe.

The group will fund the acquisition through internal resources and borrowings.

On a pro forma basis, FY17 EPS would have increased to 14.79 cents from 14.56 cents if the acquisitions had been completed by the fiscal year.

Panote Sirivadhanabhakdi, group CEO of Frasers Property says, “The addition of development capabilities will further strengthen our offering in Europe. There will be even more opportunities for cross-marketing to tenants and knowledge sharing across our multi-geographies network in Australia, Thailand and Europe.”

Shares in Frasers Property last traded at $1.97.

Hyflux gets non-binding letter of intent from China suitor

SINGAPORE (June 15): Hyflux has received another non-binding letter of intent (LOI) for a potential investment in the group by an investor based in China. In a Friday night filing, Hyflux says the investor is a subsidiary of a state-owned enterprise in the industrial field which works on a global scale to provide comprehensive power services. “Other fields of expertise of the investor’s holding company include wind and solar energy solutions, nuclear industry, medical technology and agriculture,” says Hyflux. See: Rags-to-riches tale goes sour for Hyflux founder Olivia Lum Se....

Hong Kong suspends China extradition bill

(June 15): Hong Kong’s leader suspended efforts to pass a bill allowing extraditions to China, in a dramatic reversal that she said was necessary to restore order in the Asian financial hub and avoid further violence and mass protests. Carrie Lam, Hong Kong’s chief executive, announced the legislative “pause” at a news conference Saturday, even as activists asked hundreds of thousands of residents who marched in protest last weekend to return to the streets and demand her resignation. Lam acknowledged that debate had shattered a period of relative calm in the former British colony, ....

Chip Eng Seng in joint $47.5 mil investment of China distressed property company

SINGAPORE (June 15): Chip Eng Seng and controlling shareholder Haiyi Investment are jointly investing RMB240 million ($47.5 million) in a distressed property company based in Taicang city in Jiangsu province, China. Chip Eng Seng says the investment will enable the project company to discharge its outstanding liabilities such that its assets will be unsealed and restart a project involving the development and construction of a residential development on a land area of 38,000 sqm, with a gross floor area of 111,111 sqm. The project company, effective controlled by local shareholder Ren We....