Frasers Logistics & Industrial Trust sells Australian property for A$90.5m

THE manager of Frasers Logistics & Industrial Trust (FLT) on Tuesday said that it has sold a property in Australia for A$90.5 million (S$90.5 million) through its trustee.

The property on 80 Hartley Street, Smeaton Grange is located in New South Wales, Australia, and comprises a cross-dock, regional distribution facility with a high clearance warehouse, office accommodation of 2,033 square metres, among other things. The property was purpose-built for Coles Supermarkets Australia and will have a remaining lease term of about five years, upon extension of the existing lease.

The sale price represents a 40.3 per cent premium above the book value of the property as at March 31, 2018, and a 39.2 per cent premium over the original purchase price paid by FLT when the property was acquired during FLT's listing in 2016.

In a media statement, Robert Wallace, chief executive officer of the real estate investment trust (Reit) manager, said: "The proposed divestment of 80 Hartley Street is in line with our ongoing efforts to divest non-core assets and optimise the quality of FLT's logistics and industrial portfolio. The estimated net proceeds from the sale will provide FLT with greater financial flexibility, as we continue to pursue value enhancement opportunities."

FLT's portfolio will now comprise 60 properties in Australia, 17 in Germany and four in the Netherlands, with a total value of about A$2.8 billion.

The estimated net proceeds from the proposed divestment is approximately A$82.2 million.

Units of FLT closed at S$1.05 on Tuesday, up one Singapore cent.