FLCT acquires logistics property in Australia, UK business park for $89.9 mil
By Valerie Kor
/ EdgeProp Singapore |
Frasers Logistics & Commercial Asset Management, the manager of Frasers Logistics & Commercial Trust (FLCT), has proposed to acquire a logistics property in Melbourne, Australia, and 100% of the issued share capital of Maxis Business Park, which wholly owns Maxis Business Park in the UK. The total purchase consideration is around $89.9 million.
The Australian property spans 14,263 sq m (153,525 sq ft) and is located in Melbourne’s CBD within the Braeside Industrial Estate. The asset purchase consideration is $22.5 million. According to the press release by FLCT, the industrial market in Australia “continues to be popular with investors due to the strong market fundamentals, low levels of vacancy, limited supply and favourable demographics”. Investment volume in the industrial market is A$1.7 billion ($1.7 billion) during 1H2020.
The UK property — Maxis Business Park in Bracknell, Thames Valley — comprises two office buildings with a net lettable area of 17,859 sq m. The asset purchase consideration is $67.7 million. Key tenants at Maxis Business Park include Panasonic UK, Allegis Group and Cadence Design Systems. It is connected by highways and a direct train service to Waterloo station in London. FLCT’s press release states that more than 60% of the tenants at the business park are in the technology and telecommunication sectors.
Maxis Business Park in Thames Valley is currently tenanted by Panasonic UK, Allegis Group and Cadence Design Systems (Photo: FLCT)
The REIT manager has also proposed sale of remaining 50% of its ownership in a Brisbane cold storage facility to the existing co-owner for a sale consideration of $150.5 million. The price is 12.2% more than the book value of $134.2 million as at June 30, and 31% more than the original purchase price of $114.9 million during FLCT’s initial public offering in 2016.
The proposed acquisitions and divestment are targeted to be completed by September and December, respectively. When completed, FLCT’s portfolio will comprise 100 properties with a total lettable area of around 2.6 million sq m and a portfolio value estimated at $6 billion.
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