10 Dec 2020
SINGAPORE, 10 DECEMBER 2020
Frasers Logistics & Commercial Asset Management Pte. Ltd., the manager of Frasers Logistics & Commercial Trust (“FLCT” and the manager of FLCT, the “REIT Manager”), is pleased to announce that it has entered into sale and purchase agreements to divest its ownership in three leasehold industrial properties in South Australia2 (the “SA Portfolio”) for a total consideration of A$29.6 million3 (the “Consideration”).
The Consideration represents a 19.4% premium to the SA Portfolio’s total book value of A$24.8 million as at 30 September 2020 and is above the total original purchase consideration of A$28.7 million at FLCT’s initial public offering in 2016. The proposed divestment is in line with the REIT Manager’s proactive asset management and portfolio rebalancing strategies.
Mr. Robert Wallace, Chief Executive Officer of the REIT Manager, said, “The proposed divestments of three non-core leasehold properties in South Australia, with an attractive premium relative to market value, is part of our proactive asset management strategy and in line with our continuing focus on core industrial markets on the eastern seaboard of Australia. The divestment proceeds will also provide us with greater financial flexibility to manage FLCT’s capital.”
The estimated net proceeds from the divestments is approximately A$28.1 million, after taking into account outstanding incentives, divestment fees of A$148,0004 to be paid to the REIT Manager as well as other divestment and tax related expenses. The net divestment proceeds may be used for funding potential acquisition opportunities, reducing existing debt and/or other general corporate purposes.
The proposed divestment is expected to be completed by 31 March 2021.