Frasers Logistics & Commercial Trust (FLCT) has divested an office building in Australia for A$195.3m (€109m) to local real estate investor, Harry Stamoulis.
The Singapore-listed company said the “strategic” divestment of 357 Collins Street in Melbourne would further enhance its portfolio focus on logistics and industrial properties. FLCT acquired the 25-storey building in 2015 for around A$220m.
The estimated net proceeds from the divestment are approximately S$159.3m, after taking into account divestment fees and other divestment-related adjustments and expenses.
The net divestment proceeds may be used to fund potential acquisition opportunities, repay existing debt, and/or other general corporate and working capital requirements.
Anthea Lee, CEO of FLCT’s manager Frasers Logistics & Commercial Asset Management, said: “The divestment of the commercial asset represents another strategic step in our ongoing portfolio reconstitution, which allows us to extract value from a commercial property and re-weight our portfolio towards logistics & industrial properties.
“The proceeds from the sale will also provide FLCT with enhanced financial flexibility to pursue opportunities in the logistics & industrial space.”
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