FLT and FCOT propose merger for $1.54b

They also plan to fully acquire Farnborough Business Park in the UK.

Frasers Logistics & Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) have proposed to merge into an enlarged REIT for a total consideration of $1.54b, the companies announced in an SGX filing. This comprises of $138.1m in cash and 1,128 million consideration units.

The merger will be made through a trust scheme of arrangement, with FLT acquiring all units of FCOT in exchange for a combination of cash and new units in FLT. FCOT unitholders will receive $1.68 for each unit as at the books’ closure date, each fulfilled with $0.151 in cash and 1.233 new units in FLT at an issue price of $1.24 per unit.

Following the merger, sponsor Frasers Property Limited (FPL) and its related corporations are expected to hold around 21.9% of the total issued units in the REIT. The group currently holds about 19.6% in FLT and 25.9% in FCOT.

The enlarged REIT will hold a portfolio of logistics, industrial, office, business park and commercial assets worth about $5.7b across Asia Pacific, Europe and the United Kingdom. It expects to become one of the top 10 largest S-REITs by market cap and will have greater index representation on the FTSE EPRA/NAREIT Index, the joint release said.

FLT is also planning to acquire a 50% interest in Farnborough Business Park (FBP) from a wholly-owned subsidiary of Frasers Property Limited (FPL) for an estimated consideration of $157.7m (£90.1m).

The remaining 50% interest in FBP is currently indirectly held by FCOT. Upon completion of the proposed acquisition, the enlarged REIT will hold 100% of the interest in FBP.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia