The manager of Frasers Logistics & Commercial Trust (FLCT) has divested a leasehold property at 2-24 Douglas Street in Port Melbourne, Australia for a consideration of A$42.5 million ($41.7 million).
The sale and purchase agreement was entered into with an unrelated third-party purchaser, announced the REIT on the evening of Dec 2.
The consideration represents a significant premium to both the property’s book value of A$21.0 million as at Sept 30, as well as its original purchase price of A$21.7 million at FLCT’s initial public offering (IPO) in 2016.
The estimated net proceeds will come in at around A$38.5 million after taking into account divestment fees.
The proposed divestment is said to be in line with the REIT manager’s proactive asset management and portfolio rebalancing strategies.
It is expected to be completed by the first half of 2022.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
“This proposed divestment of our leasehold property at Port Melbourne is transacted at an attractive premium over its book value. It is a timely divestment that resonates well with our strategy to realise value from non-core properties. The divestment will also provide us with greater financial strength and flexibility,” says Robert Wallace, CEO of the manager.
Units in FLCT closed at $1.45 on Dec 2.
Photo: FLCT
