Frasers Logistics & Industrial Trust to acquire 7 properties in Australia

The total acquisition amount is $174m.

Frasers Logistics & Industrial Trust (FLT) said it has proposed to acquire a portfolio of seven fully leased or pre-committed industrial properties in Australia from its sponsor Frasers Centrepoint Limited (FCL).

This comprises four completed properties and three properties currently under development. The total acquisition amount is A$169.3m ($174m), which is slightly below their aggregate valuation of A$171.3m ($176m).

OCBC Investment Research sees this transaction positively, since the portfolio of properties has an occupancy rate of 100%.

Here's more from OCBC:

We are positive on this transaction as the portfolio of properties has an occupancy rate of 100% (including pre-committed leases for the development properties), a WALE of 9.6 years (FLT’s overall WALE will increase by 0.2 years to 6.9 years as a result) and built-in annual rent escalations of 3.1%.

Furthermore, six of the properties are on freehold land and the one on leasehold land has 89 years remaining. According to FLT, funding for the proposed acquisitions may be through borrowings or a combination of both debt and equity. We expect management to utilise a capital structure which will be DPU accretive to unitholders.