The property is an older, non-core manufacturing-suited facility with an imminent lease expiry.
Frasers Logistics & Industrial Asset Management, the manager of Frasers Logistics & Industrial Trust (FLT) entered into a sale and purchase agreement with Enborne Pty Ltd, for the sale of 63-79 South Park Drive, Dandenong South, Victoria, Australia at a consideration of $16.64m (A$17.25m).
According to an announcement, the consideration is at 13.1% premium to the property’s book value of $14.71m (A$15.25m) as at 30 September 2018 and 4.5% premium to the original purchase price of $15.92m (A$16.5m) at FLT’s initial public offering in 2016.
Robert Wallace, CEO of Frasers Logistics & Industrial Asset Management, said, “63-79 South Park Drive is an older, non-core manufacturing-suited facility with an imminent lease expiry. The proposed sale of the Property is timely and in line with our proactive asset management and portfolio rebalancing strategies.”
The estimated net proceeds from the proposed divestment are approximately $16.11m (A$16.7m), after taking into account divestment fees to be paid to the REIT manager and other divestment related expenses.
Upon completion of the proposed divestment, FLT’s portfolio will comprise 60 properties in Australia, 17 in Germany and five in the Netherlands, with a total value of approximately $2.89b (A$3b).
The proposed divestment is expected to be completed by the first half of 2019.
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