• Capitalises on strong logistics industry tailwinds through the acquisition of interests in four logistics and industrial properties located in Germany and the Netherlands; together with a logistics and industrial property and a business park in the United Kingdom (the “UK”)
• Marks FLCT’s maiden entry into the UK logistics sector
• Freehold portfolio with a long weighted average lease to break (“WALB”) of 7.6 years¹ and a blended occupancy rate of 97.4%^1,2
• Proposed Acquisition is expected to be DPU and NAV per unit accretive

Unless otherwise stated, the S$ equivalent of the € figures and £ figures in this press release have been arrived at based on assumed exchange rates of £1 : S$1.8736 and €1 : S$1.6112, respectively.

SINGAPORE, 24 MAY 2021

Frasers Logistics & Commercial Asset Management Pte. Ltd., the manager of Frasers Logistics & Commercial Trust (“FLCT” and the manager of FLCT, the “Manager”), is pleased to announce the proposed acquisition of interests in three freehold logistics and industrial properties located in Germany and a logistics and industrial property³ in the Netherlands, (the “New EU Properties”) from subsidiaries of Frasers Property Limited (“FPL”, or the “Sponsor”); and two freehold properties, known as Connexion and Blythe Valley Park, located in the UK (the “New UK Properties”) from subsidiaries of I.M. Properties PLC, collectively with the New EU Properties, the “New Properties” and the “Proposed Acquisition”).

The agreed property purchase price⁴ for the New Properties is approximately S$548.7 million (the “Property Purchase Price”), representing a discount of approximately 2.5% to the New Properties’ aggregate appraised value⁵ of S$562.4 million. The aggregate purchase consideration for the Proposed Acquisition is approximately S$469.7 million⁶. For further details, please refer to the acquisition announcement dated 24 May 2021.

The Proposed Acquisition is positioned to capitalise on strong logistics industry tailwinds. The UK and Germany are the two largest e-commerce markets in Europe and among the top 10 globally. In the UK, online retail sales penetration⁷ increased 46.0% year-on-year⁸ (“Y-o-Y”) in 2020, while Germany and the Netherlands also experienced growth of 20.7% and 24.6% Y-o-Y in 2020 respectively⁹. This has led to strong demand for logistics real estate in these markets. The e-commerce-driven industrial demand in the UK is expected to triple over the next four years to 92 million square feet in 2024¹⁰; while demand for logistics space in Germany and the Netherlands increased 19.0% Y-o-Y and 8.7% Y-o-Y respectively during the first quarter of 2021¹¹.

Mr. Robert Wallace, Chief Executive Officer of the Manager, commented, “The New Properties are complementary to FLCT’s portfolio and provides FLCT with a long-term income stream from a lineup of high- quality and diversified tenants. The tenants also strengthen our global customer network and provide further exposure to attractive growth sectors. Furthermore, FLCT’s maiden third-party acquisition of the properties in UK with a site available for development as a potential value-add opportunity showcases FLCT’s deal- sourcing capabilities to identify value for its unitholders. The Proposed Acquisition is also expected to be DPU and NAV per unit accretive.”

With a total lettable area of 62,115 square metres (“sqm”), the New EU Properties are located within the key logistics hubs of Frankfurt and Mannheim in southwest Germany, and in the east of the Netherlands at the Food & Business Park Ede, which is close to key trading routes. With a young average age of just 2.8 years¹², the new EU Properties are high quality and modern logistics facilities with high specifications, which would require little near-term capital expenditure and equipped with installations that meet a wide range of e- commerce and logistics requirements. The New EU Properties are also located in close proximity to FLCT’s existing European properties and will continued to be managed leveraging on FPL’s integrated asset and property management platform.

With a total lettable area of approximately 61,213 sqm, the New UK Properties are strategically located in West Midlands and within proximity to Birmingham, the country’s second largest populated city after London. Situated in the heart of the UK and within the “Golden Triangle” region¹³, the New UK Properties have direct access to over 90% of the UK’s population within a four-hour drive. The synergistic mix of logistics and business space of the UK Properties enable existing and new occupiers to conduct end-to-end business operations and progress alongside the growth within this mixed-use campus.

As at 31 March 2021, the New Properties have a blended occupancy rate of 97.4% with a long WALB of 7.6 years, with tenants that include established third-party logistics companies and corporates, such as Hermes Germany GmbH, Gymshark Limited, Lounge Underwear Limited and BASF SE. All of the New EU Properties are 100% occupied with leases that have built-in consumer price indexation.

With the New Properties being freehold, the proportion of freehold assets in FLCT’s portfolio will increase in proportion from 65.1% to 67.9%¹⁴ upon completion of the Proposed Acquisition. FLCT portfolio’s WALB will also extend from 4.4 years to 4.7 years after the Proposed Acquisition. The Proposed Acquisition will also further strengthen FLCT’s portfolio by contributing to further diversification of FLCT’s quality tenant base and reduce tenants’ concentration, with GRI contribution from FLCT’s top 10 tenants reducing by 0.6 percentage points, from 24.0% to 23.4%¹⁵ after the Proposed Acquisition.

Funding for the Proposed Acquisition will be via a combination of proceeds from the equity fund raising announced on 24 May 2021 and borrowings. The Proposed Acquisition is expected to be completed by June 2021.

¹ Based on gross rental income (“GRI”), being the contracted rental income and estimated recoverable outgoings for the month of March 2021. Excludes straight lining rental adjustments and include committed leases.

² Committed occupancy as at 31 March 2021.

³ The Dutch property is currently under development and expected to be completed by June 2021.

⁴ Based on 100% effective interest. Negotiated on a willing-buyer and willing-seller basis and taking into account the independent valuations conducted by Jones Lang LaSalle SE and Savills (UK) Limited for the New EU Properties, and Knight Frank LLP for the New UK Properties.

⁵ Being the aggregate of the higher of the two independent valuations for each New EU Property and the valuation of the New UK Properties.

⁶ Excludes the acquisition fee and other transaction costs to be paid to the Manager and other transaction costs.

⁷ “Online retail sales penetration” is defined as the percentage share of online retail sales as a percentage of total retail sales.

⁸ Source: Office for National Statistics, UK (ONS). ONS has not provided its consent to the inclusion of the information extracted from the relevant report published by it and therefore is not liable for such information.

⁹ Source: eMarketer. eMarketer has not provided its consent to the inclusion of the information extracted from the relevant report published by it and therefore is not liable for such information.

¹⁰ Source: Knight Frank LLP. Knight Frank LLP has not provided its consent to the inclusion of the information extracted from the relevant report published by it and therefore is not liable for such information.

¹¹ Source: BNP Paribas Real Estate Q1 2021. BNP Paribas Real Estate has not provided its consent to the inclusion of the information extracted from the relevant report published by it and therefore is not liable for such information.

¹² As at 31 March 2021.

¹³ From Northamptonshire to East Midlands Airport and Tamworth area with proximity to major motorways, notably the M1 and M6, which leads to major cities such as London and Manchester.

¹⁴ Based on the existing portfolio book value and property purchase price for the New Properties.

¹⁵ Based on GRI, being the contracted rental income and estimated recoverable outgoings for the month of March 2021. Excludes straight lining rental adjustments and include committed leases.