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FLCT completes divestment of Port Melbourne property at lower consideration of $37.5 mil

Felicia Tan
Felicia Tan10/25/2022 08:27 AM GMT+08  • 1 min read
FLCT completes divestment of Port Melbourne property at lower consideration of $37.5 mil
The revised consideration came after the REIT trustee entered into a deed of variation with the third-party purchaser. Photo: FLCT
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The manager of Frasers Logistics & Commercial Trust (FLCT) has completed the divestment of the leasehold property at 2-24 Douglas Street, Port Melbourne in Australia but at a lower consideration of A$41.525 million ($37.5 million).

This is lower than the initial consideration of A$42.525 million, or $38.4 million based on an exchange rate of A$1 to 90.31 cents.

The revised consideration came after the REIT trustee entered into a deed of variation with the third-party purchaser. According to the REIT manager, the deed of variation was entered into “in order to facilitate the completion of the divestment”.

Under the deed of variation, the payment of A$6.5 million as part of the new consideration will also be deferred to Dec 11, 2023.

The new consideration still represents a premium of A$20.5 million to the property’s book value of A$21.0 million as at Sept 30, 2021.

The divestment was completed on Oct 24.

See also: Cromwell European REIT’s portfolio falls to EUR2.49 bil in FY2022, gearing expected to remain below 40%

Units in FLCT closed 4 cents lower or 3.6% down at $1.07 on Oct 21.

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