Singapore's Frasers Logistics Property Trust has sold the remaining 50% interest in an industrial facility in Brisbane for $152.5m.
Comprising a significant cold store/freezer Distribution Centre of 55,245sq.m within one of South-East Queensland’s major industrial estates, the asset is fully leased to Coles with 12 years remaining on the current lease term.
The facility, which sits on a 15.9ha leasehold site, was originally developed in 2008 by Australand and expanded in 2012.
The purchaser, DWS Group, (previously known as Deutsche Asset Management) acquired the other 50% in June 2019 for $134.2M.
The latest deal represents a 12.2% premium over the Frasers' book value of $135.9 million as at 30 June 2020, and a 31.0% premium over the same portion of the original purchase price.
Commenting on the transactions, Mr. Robert Wallace, Chief Executive Officer of the REIT Manager, said, “The divestment is in-line with our active asset management strategy, enabling FLCT to unlock value from the Sale Property at an attractive premium, with the divestment proceeds providing FLCT with greater financial flexibility,”
Frasers also announced the acquisition of a smaller facility in Melbourne for $22.5M. The asset at 75 Canterbury Rd Braeside is a modern and prime freehold logistics property with a gross lettable area of approximately 14,263sqm. The asset has a WALE of approximately 4.9 years and is fully leased to IVE Group Ltd with a fixed annual rent increment of 3.0%.
Mr. Robert Wallace said, the property is a strategic fit with FLCT’s portfolio – being modern and high-quality property with excellent connectivity and strong tenants which have demonstrated resilience notwithstanding the COVID-19 pandemic.
The Australian industrial market, in particular the eastern seaboard cities of Sydney, Melbourne and Brisbane, remains one of the most sought-after sectors by both domestic and global players.
Despite the COVID-19 pandemic, the investment volume has remained strong with total sales transacted at A$1.7 billion during the first half year of 2020. The industrial and logistics sector in south eastern Melbourne continues to be popular with investors due to the strong market fundamentals, low levels of vacancy, limited supply and favourable demographics.
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