Frasers Property acquires Alpha Industrial's logistics business and assets for $468 mil

By Samantha Chiew / The Edge Singapore | February 19, 2018 9:26 AM SGT
SINGAPORE (Feb 19): Frasers Property is acquiring a property portfolio of 22 assets that are mainly owned and managed by Alpha Industrial Holding in Luxembourg, as well as the project and asset management business of Alpha Industrial through the purchase of 100% of Alpha Industrial GmbH & Co in Cologne, Germany.
The total consideration for the portfolio and business acquisition is €285.2 million ($467.7 million).
Alpha Industrial is a German-based logistic and industrial developer.
Outsourcing specialist and certified secondary packager Mühle's space at Obertshausen Business Park (Credit: Alpha Industrial)
The acquisition comprises a portfolio of 16 completed logistics and light industrial facilities, with a combined gross leasable area (GLA) of 393,800 sqm located in key industrial and logistics hubs in Germany and Austria.
The portfolio has a tenant base of reputable national and international corporations, with a weighted average lease expiry (WALE) of 6.2 years, which will contribute stable and recurring income to the group.
The acquisition also includes six logistical projects which are acquired as development and forward purchases with a total additional GLA of approximately 162,500 sqm.
The aggregate valuation of the properties as at Dec 31 2017 by BNP Paribas Real Estate is approximately $953.25 million.
Upon completion of the acquisition, the group’s portfolio will grow to €1.6 billion and over 1.3 million sqm of GLA.
The sale and purchase agreements will be signed by entities of its business unit, Frasers Property Europe.
The group will fund the acquisition through internal resources and borrowings.
On a pro forma basis, FY17 EPS would have increased to 14.79 cents from 14.56 cents if the acquisitions had been completed by the fiscal year.
Panote Sirivadhanabhakdi, group CEO of Frasers Property says, “The addition of development capabilities will further strengthen our offering in Europe. There will be even more opportunities for cross-marketing to tenants and knowledge sharing across our multi-geographies network in Australia, Thailand and Europe.”
This story, written by Samantha Chiew for The Edge Singapore, first appeared on Feb 19.