Key facts
- Frasers Property is selling four logistics properties in Germany and the Netherlands.
- The buyer is Frasers Logistics & Commercial Trust (FLCT), a unit of Frasers Property.
- The total transaction value is €294.9 million ($343 million).
- The divestment is part of Frasers Property's strategy to recycle capital and optimize portfolio management.
- The acquisition is expected to be earnings accretive for FLCT and boost its portfolio occupancy.
Frasers Property, a real estate company controlled by Thai billionaire Charoen Sirivadhanabhakdi, is divesting four logistics properties in Europe to its listed unit, Frasers Logistics & Commercial Trust (FLCT), for €294.9 million ($343 million). The portfolio includes two properties in Germany and two in the Netherlands, totaling 179,645 square meters of gross leasable space.
According to Anthea Lee, CEO of FLCT's manager, the acquisition allows the REIT to strengthen its presence in resilient European logistics markets. The deal is expected to be earnings accretive for FLCT and enhance its portfolio occupancy to 96.3% and the proportion of logistics assets to 76.6% upon completion.
Frasers Property stated that the divestment aligns with its strategy of recycling capital through active portfolio management by injecting stabilized assets into its REITs. This approach aims to optimize capital productivity and support the growth of its REITs. The transaction is part of the group's broader strategy to manage its investments effectively.