Frasers Logistics & Commercial Trust has acquired two properties in Australia and the UK from its sponsor Frasers Property Limited for a total of $89.9 million.
FLCT paid A$22.5 million for a logistics property located at 75-79 Canterbury Road, Braeside, Victoria, Australia (picture). It also paid £37.7 million ($67.7 million) for the entire issued share capital of Maxis Business Park in Bracknell, Thames Valley, United Kingdom.
While the acquisition is deemed an interested party transaction, the amount is less than 5% of FLCT’s latest net tangible asset value, and therefore additional approval from unitholders is not required.
Separately, FLCT plans to sell its remaining 50% of its ownership in the property at 99 Sandstone Place, Parkinson, Queensland, Australia to the existing co-owner for A$152.5 million, which is a 12.2% premium over the book value, and a 31% premium over FLCT’s original purchase price of A$116.4 million.
Robert Wallace, CEO of Frasers Logistics & Commercial Asset Management, the REIT manager, calls the two new purchases a “strategic fit” with FLCT’s portfolio of modern and high-quality properties with strong tenants and excellent connectivity.
“It also further entrenches FLCT in two attractive markets – Melbourne’s South East industrial suburb and the UK’s Thames Valley business park market, both of which have demonstrated resilience notwithstanding the COVID-19 pandemic,” he says, adding that the acquisitions will be accretive to unitholders of FLCT.
On the other hand, the divestment is line with its active asset management strategy. Proceeds from the sale will give FLCT greater financial flexibility.
Upon completion of these transactions, FLCT will have 100 properties with a total lettable area of approximately 2.6 million sqm and a portfolio value of approximately $6.0 billion.
On Aug 3, FLCT closed at $1.32, down 2.22% for the day and up 7.3% year to date.