Frasers Property to acquire German, Austrian logistics assets for 285.2m euros

FRASERS Property is set to acquire 22 logistics and light industrial assets in Germany and Austria mainly owned and managed by developer Alpha Industrial for 282.5 million euros (S$285.2 million).

The assets include 16 completed logistics and light industrial facilities, with a combined gross leasable area (GLA) of 393,800 square metres that are located in key industrial and logistics hubs in Germany and Austria. With a tenant base of reputable national and international corporations and weighted average lease expiry of 6.2 years, the portfolio will contribute stable, recurring income to Frasers Property Europe (FPE), Frasers Property said.

In addition, FPE will acquire six logistical projects which are acquired as development and forward purchases with a total additional GLA of about 162,500 square metres.

BNP Paribas Real Estate has valued the entire portfolio at 581.25 million euros. The consideration will be paid in cash, to be funded form borrowings and internal resources.

The Alpha Industrial management team will become an integral part of Frasers Property's European platform, which Frasers Property started building with the acquisition of Geneba Properties NV in July 2017. Upon completion of the acquisition, Jörg Schröder, Managing Director of Alpha Industrial, will be be appointed as chief investment officer of FPE.

Panote Sirivadhanabhakdi, Group CEO of Frasers Property said: "Alpha Industrial complements our existing platform in Europe. From the business strategy perspective, Alpha Industrial has a focused strategy for growth, specialising in the development of green and brown-field properties for conversion into modern logistics and industrial facilities.

"The acquisition also presents an attractive entry point, given the high quality and location of the assets, defensive portfolio metrics, and solid tenancy profile."

With this acquisition, FPE's property portfolio will grow to 1.6 billion euros and over 1.3 million square metres of GLA.