Frasers Logistics Trust to divest Australia property for around A$17 million

Australian notes and coins

Frasers Logistics & Industrial Trust said on Friday it would sell a Victoria, Australia, property to Enbourne for A$17.25 million (S$16.57 million or US$12.22 million).

The property, at 63-79 South Park Drive, Dandenong South Victoria, will be sold at a 13.1 percent premium to its book value of A$15.25 million, as of end-September, and at 4.5 percent above the original purchase price, the trust said in a filing to SGX on Friday.

Robert Wallace, CEO of the REIT’s manager, Frasers Logistics & Industrial Asset Management, said the property was an older, non-core manufacturing facility with a lease set to expire soon.

The estimated net proceeds of around A$16.7 million may be used for funding potential acquisitions, reducing existing deb and/or other general corporate purposes, FLT said.

The planned divestment is expected to be completed in the first half of this year, the trust said.

After it’s completed, FLT’s portfolio will have 60 properties in Australia, 17 in Germany and five in the Netherlands, with an around A$3.0 billion total value, the filing said.

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