FCL to buy six German logistics facilities for abut 257m euros

FRASERS Centrepoint Ltd (FCL) is acquiring six logistics facilities in Germany for about 257 million euros (around S$408.63 million).

The mainboard-listed group announced late on Saturday night that its wholly owned subsidiaries have entered into a sale and purchase agreement with ECE Projektmanagement, a Hamburg-based developer, owner and manager of commercial real estate, for the acquisition of the six cross-dock facilities, which total 75,478 square metres (sq m) of lettable area on 426,439 sq m of land.

"The properties are located in some of Germany's key logistic markets in Heilbronn, Mainz, Berlin, Augsburg, Hamburg and near Leipzig," FCL said in a regulatory filing with the Singapore Exchange.

The cross-dock facilities in each of the six properties are state-of-the-art and 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," FCL said.

The properties are newly built or are to be built, and are all 100 per cent preleased to Hermes Germany, which is the country's largest private B2C (business to consumer) parcel delivery company, 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," FCL said.

The group highlighted the benefits of the acquisition which will include enabling FCL to grow its proportion of recurring income while complementing its current portfolio of European logistics and light industrial properties. The purchase also positions FCL to benefit from e-commerce logistical requirements. "The last-mile logistics sector has demonstrated resilience, with rental and occupancy rates on an uptrend due to strong demand and limited supply."

The acquistion also offers "strong defensive characteristics", FCL said.

"The properties are high quality, state-of-the-art and strategically located with excellent connectivity to major cities such as Berlin, Hamburg, Stuttgart, Leipzig and Munich. On a long-term lease to a reputable German logistics company, the properties will contribute stable, recurring income to FCL."