Singapore-based Frasers Logistics & Commercial Trust (FLCT) has agreed to buy six logistics assets in Europe for a total of S$548.7m (€338m).
FLCT is buying the Blythe Valley business park and the Connexion industrial facility in the UK from subsidiaries of IM Properties for £170.2m (€197m) and is investing €93.6m to buy three properties in Germany and one in the Netherlands from subsidiaries of Frasers Property.
Robert Wallace, chief executive officer of the manager, said: the proposed acquisition was complementary to the FLCT portfolio.
“The tenants also strengthen our global customer network and provide further exposure to attractive growth sectors,” he said.
Wallace said the purchase in the UK provided the trust with a stepping-stone into the UK market. In one of the assets, he said, there was a site available for development as a potential value-add opportunity.
The manager launched a private placement of 220m new units to raise at least S$299.8m, with a caveat allowing the manager an upsize option which would bring the total amount raised to a maximum of S$335.8m. The balance of the acquisition cost would be funded by borrowings.
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