An industrial property owned by Frasers Logistics in Australia.
Frasers Logistics
Singapore-listed Frasers Property—controlled by Thai billionaire Charoen Sirivadhanabhakdi—is selling four of its logistics properties in Europe to its unit Frasers Logistics & Commercial Trust (FLCT) for €294.9 million ($343 million).
“This proposed acquisition from our sponsor allows FLCT to deepen its presence in two of Europe’s most resilient and trade-oriented logistics markets,” Anthea Lee, CEO of the manager of the Singapore-listed REIT, said in a statement on Monday.
The two logistics properties in Germany and another two in the Netherlands with a combined gross leasable space of 179,645 square meters, is fully leased out to tenants including e-commerce players. The acquisition is earnings accretive and provides the REIT rental upside.
The properties will boost Frasers Logistics’ portfolio occupancy to 96.3% from 96.1% and the proportion of logistics assets in its portfolio to 76.6% from 75.1%. Upon completion of the transaction, Frasers Logistics would have 118 properties across Australia, Germany, Netherlands, Singapore and U.K.
Frasers Property said the divestment was in line with the strategy to recycle capital as part of active portfolio management by injecting stabilized and mature investment properties into its REITs.
“This active portfolio management approach enables the group to both optimize capital productivity and support the growth of its REITs,” Frasers Property said.
Charoen and his family are among the wealthiest in Thailand with an estimated fortune of $11.7 billion based on Forbes’ real-time data. Besides his controlling stake in Frasers Property, he also has interests in Chang Beer maker Thai Beverages, packaging company Berli Jucker, Thai property developer Asset World and Thailand’s Big C Supercenter hypermarket chain.