FLCT divests leasehold property in Port Melbourne for $41.7m

It represents a premium to the property’s book value of approximately $20.6m.

Frasers Logistics & Commercial Trust (FLCT) has entered into a sale and purchase agreement with an unrelated third-party purchaser for the sale of a leasehold property at Port Melbourne in Victoria, Australia for a consideration of $41.7m (AUD42.5m).

It represents a significant premium to the property’s book value of approximately $20.6m (AUD21m).

The proposed divestment of this non-core leasehold property is also in line with proactive asset management and portfolio rebalancing strategies.

The REIT manager's CEO Robert Wallace said, “This proposed divestment of our leasehold property at Port Melbourne is transacted at an attractive premium over its book value. It is a timely divestment that resonates well with our strategy to realise value from non-core properties. The divestment will also provide us with greater financial strength and flexibility.”

The estimated net proceeds will be paid to the REIT Manager as well as other divestment and tax-related expenses. The net divestment proceeds may be used for funding potential acquisition opportunities, reducing existing debt, and other general corporate purposes.