FLT divests 50% interest in Queensland property for A$134.2 mil
SINGAPORE (June 14): The manager of Frasers Logistics & Industrial Trust (FLT) announced that it has through its wholly-owned sub-trust, divested 50% of its interest in the property at 99 Sandstone Place, Parkinson, Queensland, Australia, for a consideration of A$134.2 million ($127.2 million).
The purchaser is an entity managed by DWS, a global real estate investment manager.
The property is a cold storage distribution facility, which is currently leased to Coles Group. It has a total gross lettable area of 54,245 sqm and occupies a site of 155,300 sqm.
The consideration represents an 8.8% premium over the property’s book value of A$123.3 million (based on a 50% interest in the property) as at Mar 31, and a 15.3% premium over the original price of A$116.4 million during FLT’s IPO in 2016.
FLT intends to use the net divestment proceeds to distribute to unitholders and/or for funding potential acquisition opportunities, reducing existing debt and/or other general corporate purposes.
Robert Wallace, CEO of the REIT’s manager, says, ““We are pleased to enter into a partnership with DWS to co-own and co-manage the Property. Coles is presently FLT’s single largest tenant at 7.0% of GRI5 which is expected to reduce to 3.6% after the divestment of a 50% interest, therefore providing a strategic opportunity for FLT to reduce its portfolio’s tenant concentration risk. This in line with our active asset management strategy, with the divestment proceeds providing FLT with greater financial flexibility.”
Units in FLT last traded at $1.18 on Thursday.
