Frasers Logistics to sell Australia warehouse for $14.2m

The property will be brought by water company Mack Bros Enterprises.

Frasers Logistics & Industrial Asset Management, the manager of Frasers Logistics & Industrial Trust (FLT), will sell its warehouse at 610 Heatherton Road, Clayton South, Victoria in Australia to plumbing company Mack Bros Enterprises for $14.2m (A$15m).

The consideration represents 11.1% premium to the apportioned book value of the property at $12.8m (A$13.5m) as at 15 April.

The proposed divestment of part of the property is said to be in line with the REIT manager’s proactive asset management strategies.

The estimated net proceeds from the proposed sale are approximately $13.3m (A$14.1m), after taking into consideration divestment fees of $70,978.50 (A$75,000) to be paid to the REIT manager, together with other subdivision and divestment related expenses. The proceeds may be used for funding potential acquisition opportunities, reducing existing debt and/or other general corporate purposes.

The sale is expected to be completed by end September 2019.