Frasers Logistics & Commercial Trust (FLCT) (SGX:BUOU
) announced that it has entered into share purchase agreements with subsidiaries of Frasers Property Limited (FPL) (SGX:TQ5) and an unrelated third party to acquire two freehold logistics properties located in Germany and two freehold logistics properties located in the Netherlands.
According to FLCT, the total purchase consideration amounts to approximately €294.9 million ($441.5 million), which represent a discount of around 0.9% of the average of the two independent valuations.
With a total gross lettable area of around 179,645 sq m, the four logistics and industrial properties are fully leased to multinational corporations and third-party logistics providers with exposure to new economy sectors including e-commerce fulfilment services.
Weighted average lease expiry at the four properties stood at 5.7 years and has built-in rental escalation pegged to consumer price index-linked indexation or fixed escalations incorporated in their leases.
Upon completion of the acquisition, FLCT’s portfolio occupancy will increase from 96.1% as at March 31 to 96.3% and the percentage of logistics and industrial assets in its portfolio will increase from 75.1% as March 31 to 76.6%.
Based on FLCT’s pro forma 1HYF2026 distribution per unit (DPU) of 2.95 cents, it is expected to increase by 1.7% to 3 cents upon completion of the acquisition.
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The acquisition will be funded through external debt financing and is expected to be completed by August. A circular will be issued to unitholders and an EGM will be convened upon SGX in-principle approval.
“This proposed acquisition from our Sponsor allows FLCT to deepen its presence in two of Europe's most resilient and trade-oriented logistics markets that is consistent with our strategy to scale our L&I portfolio. The portfolio also offers some embedded rental upside, providing reversion potential as leases expire,” says Anthea Lee, CEO of the manager.
Units in FLCT closed unchanged at 98 cents on May 25.
