Frasers Commercial Trust, a sub-trust of Frasers Logistics & Commercial Trust (FLCT), has sold a mixed-use building in Singapore to a buyer, believed to be from Hong Kong, for S$811m (€534m).
The manager of the listed FLCT said the proposed divestment of Cross Street Exchange, a non-core leasehold commercial property, was in line with the proactive asset management and portfolio rebalancing strategies adopted by the trust.
The strategy was to provide opportunities to re-weight FLCT’s portfolio into the logistics and industrial asset class, the manager said.
Robert Wallace, Frasers Logistics & Commercial Trust CEO, said the divestment of Cross Street Exchange had been transacted at an attractive premium over its book value.
At 30 September 2021, the asset was valued at S$632m.
Wallace said the divestment was central to the firm’s strategy to reweight the vehicle’s portfolio towards logistics and industrial properties.
This transaction proves that the allure of CBD office space remains high and that investors also see longer-potential in retail opportunities offered in mixed-use developments,” said Ting Lim, executive director, head of capital markets, Singapore, JLL, which handled the sale.
“The Singapore office market remains a major draw for institutional investors, and we expect the sector to attract significant amounts of global capital in 2022 and beyond,” said Stuart Crow, CEO, capital markets, Asia Pacific, JLL.
To read the latest edition of the latest IPE Real Assets magazine click here.