Frasers Logistics & Commercial Trust has entered a deal to divest a property in Port Melbourne, in Australia, for A$42.5 million, or around S$41.7 million, a significant premium to the A$21 million book value, the trust said in a filing to SGX Thursday.
The book value is based on a valuation by CIVAS (VIC) on 30 September; the property value including the right-of-use asset was A$40.3 million as of 30 September, the filing said, noting the property purchase price was A$21.7 million at the trust’s initial public offering in 2016.
“This proposed divestment of our leasehold property at Port Melbourne is transacted at an attractive premium over its book value. It is a timely divestment that resonates well with our strategy to realise value from non-core properties,” Robert Wallace, CEO of the REIT’s manager, said in the statement. “The divestment will also provide us with greater financial strength and flexibility.”
The estimated net proceeds of around A$38.5 million may be used for funding potential acquisitions, reducing existing debt and/or other general corporate purposes, the filing said.
The property is a leasehold property located at 2-24 Douglas Street, Port Melbourne, in Victoria, Australia, the filing said.
The buyer is an unrelated third party, the trust said.