Frasers Logistics & Commercial Trust has entered a deal to buy a commercial property in Mount Waverley, Victoria, Australia for A$60.25 million, or around S$58.4 million, the REIT said in a filing to SGX Thursday.
“The acquisition is aligned with our strategy to pursue strategic opportunities which provides attractive yields and enables us to leverage our management expertise in Australia,” Robert Wallace, CEO of the REIT’s manager, said in the statement.
“With the property being 100 percent leased to reputable tenants in diverse industries, the acquisition is expected to further enhance FLCT’s quality tenant mix and portfolio metrics, while providing unitholders with a stable income stream,” Wallace said.
The deal will be funded with the proceeds from the divestment of Cross Street Exchange in Singapore, FLCT said.
The property is a freehold suburban office building, located in the city of Monash, which has the highest concentration of employment outside of Melbourne’s central business district (CBD), the filing said. The building is five storeys, with two retail tenancies on the ground level and four levels of office space, the filing said.
The building has nine tenants, with a weighted average lease expiry of around five years as of end-March, FLCT said.
An independent valuation by CIVAS (VIC) (Colliers) valued the property at A$60.25 million, or around S$58.4 million, as of end-April, the filing said.
The property will be FLCT’s fourth commercial asset in Australia, boosting its exposure to the country’s market to 51.8 percent of total portfolio value, up from 51.3 percent previously, the filing said.