Frasers Logistics & Industrial Trust entered a deal to divest 50 percent of a Queensland, Australia, property to an entity managed by global real estate investment manager DWS for A$134.2 million (S$126.79 million or US$92.77 million), the trust said in a filing to SGX Thursday.
The consideration in a 8.8 percent premium over the book value of A$123.3 million for the 50 percent stake in the property as of end-March, and 15.3 percent above the original purchase price of A$116.4 million in 2016, FLT said.
The property, located at 99 Sandstone Place, Parkinson, in Queensland, is a cold storage distribution facility leased to Coles Group, the filing said.
“We are pleased to enter into a partnership with DWS to co-own and co-manage the property,” Robert Wallace, CEO of the REIT manager, said in the statement. “DWS has a proven track record in Australia’s industrial sector and has strong familiarity with cold storage logistics assets. This partnership is a great opportunity to bring together the mutual strengths of both FLT and DWS.”
Wallace added that Coles is currently the trust’s single largest tenant, making up 7.0 percent of gross rental income, which will fall to 3.6 percent after the divestment, reducing tenant concentration risk.
Victoria Sharpe, head of real estate for Asia Pacific with DWS, said the property, which was her company’s first Australia investment under its open-ended core real estate strategy, was an attractive opportunity to buy a super-prime, refrigerated logistics facility.
FLT said the net divestment proceeds may be distributed to unitholders and/or used to fund potential acquisitions, reduce existing debt and/or other general corporate purposes.
Singapore-listed Frasers Logistics & Industrial Trust has a portfolio of 82 properties across Australia, Germany and the Netherlands.
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