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Frasers Logistics & Industrial Trust (FLT) has acquired two prime industrial properties in Australia from Frasers Property Australia Pty Limited, a fully-owned subsidiary of sponsor Frasers Property Limited, for A$62.6 million (S$61.6 million).
In an SGX filing, FLT revealed that the properties are located in New South Wales (NSW) and Queensland.
The property in NSW has a gross lettable area (GLA) of 20,078 sq m and a weighted average lease expiry (WALE) of seven years.
The property in Queensland, on the other hand, is freehold, with a WALE of 4.2 years and GLA of 19,487 sq m.
With each property leased to two individual tenants, the property in NSW and Queensland comes with an average fixed annual rental increments of 3.1 percent and 3.0 percent per annum, respectively.
“We are pleased to strengthen our footprint in Australia’s eastern seaboard with the addition of two prime and modern industrial properties which are strategically located in established industrial precincts. Sydney and Brisbane continue to be core markets for FLT, and in the last 12 months both markets have seen strong market demand with limited supply,” said Robert Wallace, CEO of the REIT’s manager.
“The two proposed acquisitions also demonstrate our active management approach through the recycling of capital from the divestment of non-core properties. Underpinned by a WALE of 5.7 years and fixed annual rental escalations, the new properties will support FLT’s portfolio metrics and is accretive to distribution per unit,” he added.
Set to be completed by September, the acquisition will be fully funded from the sales proceeds of 80 Hartley Street in New South Wales as well as Lot 102 Coghlan Road in South Australia.
The acquisition will bring FLT’s portfolio to 82 properties with a total GLA of about 1.9 million sq m as well as a portfolio value of about A$2.9 billion as at 30 June 2018.
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