SINGAPORE (July 3): The manager of Frasers Logistics & Industrial Trust (FLT) has announced the proposed acquisition of interests in 12 logistics properties in Germany and Australia from sponsor Frasers Property for a total consideration of A$507.2 million ($481.8 million).

The agreed property purchase price of the nine properties in Germany is approximately €320.3 million ($493.3 million), while the property purchase price of the three properties in Australia is approximately A$125.5 million.

The 12 freehold logistics properties, with a total gross lettable area of 297,000 sq m, are located within the major logistics hubs of Germany and Australia. The proposed acquisition is expected to be DPU accretive.

The purchase consideration of $481.8 million takes into account the agreed property purchase prices of the 12 properties, as well as the effective interests of the German properties that FLT will be acquiring, as adjusted for the aggregate net assets and liabilities of the property holding companies which hold the properties, and the amount of inter-company loans to be assigned to FLT at completion of the acquisition of the new German properties.

Including a A$3.1 million acquisition fee payable to the manager and an estimated A$20.1 million to be incurred for professional and other fees and expenses in connection with the proposed acquisition, the estimated total cost of the transaction will come up to approximately A$530.4 million.

“The proposed acquisition deepens FLT's presence in two attractive logistics markets,” says Robert Wallace, CEO of the REIT manager. “The new properties are a strategic fit for FLT, adding more prime, modern, high-quality logistics facilities leased to reputable tenants to the existing portfolio.”

As at March 31, 2019, the properties are fully occupied, with a long WALE of 8.6 years, underpinned by tenants from primary industries including logistics services, automotive, food logistics and industrial manufacturing. This will extend FLT’s WALE to 6.7 years, from 6.5 years currently.

Funding for the purchase consideration will be via a combination of equity and borrowings.

The proposed acquisition is expected to be completed by end-August 2019, subject to approval from unitholders of FLT at an extraordinary general meeting to be convened.

 

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