Frasers Logistics Trust to sell 50% stake in Australian asset for $127.2m

The price tag represents a premium rate of 8.8%.

Frasers Logistics & Industrial Asset Management has entered into a sale purchase agreement with Australian firm ACREF 99SP to sell 50% of its interest in the property at 99 Sandstone Place for $127.2m (estimated A$134.2m), a filing with the Singapore Exchange (SGX) revealed.

The price tag reportedly represents a premium rate of 8.8% over the property’s net asset at $116.9m (estimated A$123.9m), as at 31 March 2019.

The cash settlement was negotiated on the principle of willing-buyer and willing-seller.

The property was acquired by FLT as part of its initial public offering (IPO) portfolio on 20 June 2016. Based on the original sale price of the property at A$116.4m as at the IPO, FLT is expected to receive an estimated gain of $10.3m (estimated A$10.9m) over the book value.

The property, which has a total gross land area of 54,245 sqm and occupies a site of 155,300 sqm, was constructed in 2008 and extended in 2012. It was exclusively built for Coles Group with a remaining weighted average lease expiry term of 13.2 years.