Frasers Property Australia portfolio sale to Frasers Logistics & Industrial Trust
Frasers Property Australia announced that it is selling a diversified portfolio of seven major industrial assets, spread across the eastern seaboard, to Frasers Logistics & Industrial Trust for approximately A$169.3 million .
The portfolio, which comprises four completed properties and three properties currently under development, has a WALE of 9.6 years and all properties are fully leased or precommitted. Twenty per cent of the assets are located in Sydney, 60 per cent are in Melbourne and the remainder in Brisbane.
Reini Otter, Executive General Manager, C&I & IP for Frasers Property Australia comments, “This transaction demonstrates the strength of Frasers Property Australia’s integrated property model and continues the Group’s strategy to recycle capital and allow the Australian business to continue to reinvest in further development opportunities.”
He added, “The portfolio is extremely attractive with all the assets located in core markets along the eastern seaboard. Tenant diversity is strong with a mix of third-party logistics providers as well as customers from the manufacturing, services and pharmaceuticals industries. These include Stanley Black & Decker, Clifford Hallam Healthcare, Beaulieu Carpets, CEVA Logistics and Ecolab, representing a strong mix of local and international companies.
“Approximately 66,000 sqm across three facilities are pre-lease transactions that will reach completion over the next twelve months. These include Stanley Black & Decker, Clifford Hallam Healthcare and Beaulieu Carpets.”
Frasers Property Australia’s Commercial & Industrial division developed and leased and in respect of the properties under development, is developing and has obtained pre-committed leases for all of the properties in the portfolio. Mr Otter concluded, “The Commercial & Industrial division is in a restocking phase with recent successful transactions in Sydney and Melbourne. While the market remains challenging with strong competition for tenants, these transactions demonstrate Frasers Property Australia’s competitive advantage in the market.”
Source: Frasers Property