DWS has bought a 50% stake in a cold storage warehouse in Queensland for A$134.2m (€82m) from Singapore-listed Frasers Logistics & Industrial Trust (FLT).

The trust announced that it had entered into a sale and purchase agreement with an entity managed by DWS to divest 50% of its ownership in the distribution facility at 99 Sandstone Place, which is leased to Australia retailer Coles Group.

Victoria Sharpe, head of real estate for Asia Pacific with DWS, said: “The property provided an attractive opportunity to acquire a super prime, refrigerated, logistics facility and marks the first investment in Australia for our open-ended Asia core real estate strategy.”

DWS will co-manage the asset with Frasers Logistics Trust.

Frasers Logistics Trust sold the stake at an 8.8% premium over the book value of A$123.3m as at 31 March 2019, and a 15.3% premium over the original purchase price of A$116.4m.

Robert Wallace, chief executive officer of Frasers Logistics Trust, said: “This partnership is a great opportunity to bring together the mutual strengths of both FLT and DWS in the ownership and management of industrial properties.”

He said Coles was presently the trust’s single largest tenant, and the divestment of a half stake, interest, therefore providing a strategic opportunity to reduce its portfolio’s tenant concentration risk.