Bookmark & Share
Frasers Centrepoint Limited (FCL), via its wholly-owned subsidiaries, has entered into a sale and purchase agreement with Hamburg-based developer ECE Projektmanagement GmbH for the acquisition of six-cross-dock facilities for around 257 million euros (S$410 million).
The facilities have a combined area of 426,439 sq m and a total lettable area of 75,478 sq m.
The properties are located “in some of Germany’s key logistic markets in Heilbronn, Mainz, Berlin, Augsburg, Hamburg and near Leipzig”, said FCL.
It noted that the cross-dock facilities in each of the properties are “equipped with above-market specifications to meet a wide range of e-commerce and general goods logistics requirements”.
“Dock-doors have been provided on all four sides of the facilities in each of the properties, which allows a flexible stream of goods within the buildings. The facilities are designed to meet “DGNB Gold” certification in line with the German Society for Sustainable Construction,” it added.
FCL revealed that the properties, which are newly built, or are to be built, are all 100 percent pre-leased to Hermes Germany GmbH for a term of 15 years.
“Hermes has invested substantially in the internal fit outs of the properties which include customised conveyor belt systems to maximise operational efficiency,” it said.
In an SGX filing, FCL explained that the acquisition will help the company grow its proportion of recurring income. It also marks the company’s entry into the German last-mile logistic sector.
“The acquisition complements FCL’s current portfolio in Europe, which comprises logistics and light industrial properties, and positions FCL to benefit from e-commerce logistical requirements,” it said.
“The last-mile logistics sector has demonstrated resilience, with rental and occupancy rates on an uptrend due to strong demand and limited supply.”
This article was edited by Keshia Faculin.
Related Articles:
GLP completes acquisition of Gazeley, establishes two new European funds