FLCT to acquire 89.9% interest in four German properties

This will increase FLCT’s portfolio occupancy to 95.9%.

Frasers Logistics & Commercial Trust (FLCT) will acquire 89.9% of the equity interests in four logistics properties in Germany from its sponsor Frasers Property Limited (FPL).

The agreed property price is $188.9m (€129.5m) which represents a discount of 5.3% as appraised by Colliers and a 1.1% discount to the appraised value by CBRE.

The four logistics assets have a total gross lettable (gla) of approximately 72,422 sq m and a long WALE of 6.1 years.

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The buildings are fully leased with tenants including multinational corporations such as Schenker AG, DACHSER GmbH & Co. KG, and Hermes Germany GmbH.

Three in four assets namely the Egelsbach Property, the Saarwellingen Property, and the Überherrn Property, are freehold assets strategically located within the “Blue Banana” region which has a dense population of over 110m and is near European ports and borders.

In addition, the Egelsbach Property is located near FLCT’s existing assets within the Frankfurt logistics cluster. 

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The asset acquisition will increase FLCT’s portfolio occupancy to 95.9% and will boost FLCT’s green credentials. It will also increase the number of FLCT’s German L&I assets to 33 or 25.5% of the company’s portfolio value.

The acquisition will be funded via external debt financing and is expected to be completed by the end of March 2024.