Singapore-listed Frasers Property has agreed to acquire a property portfolio of 22 assets as well as the project and asset management business of German logistic developer Alpha Industrial for a total equity amount of €285 mln.
The acquisition is being financed through a mix of internal resources and bank borrowings and includes the assumption of debt linked to the assets, which were last valued per year-end 2017 by BNP Paribas Real Estate at €581 mln.
The deal values the Alpha platform at €3.5 mln.
Alpha Industrial was founded 11 years ago and is one of Germany’s premier logistics and industrial developers. Over the last three years it has developed more than 300,000 m2 of modern logistics space in Europe. Alpha Industrial also provides third party asset management services, with long-standing mandates from top tier institutions and clients, totaling 425,000 m2.
The portfolio comprises 16 completed logistics and light industrial facilities in Germany (12) and Austria (4), with an aggregate gross leasable area (GLA) of 393,800 m2. The assets are 98% let with a weighted average lease expiry (WALE) of 6.2 years.
The acquisition also includes six logistics projects acquired as development and forward purchases with a total additional gross lettable area of 162,500 m2.They are located in the German cities of Bergheim, Obertshausen, Frankenthal, Egelsbach and Hamburg.
The assets are being acquired from two funds advised by Tristan Capital Partners, CCP IV and EPISO 3, as well as business partner Alpha Industrial.
The acquisition is part of Frasers' growth strategy in Europe and builds on the acquisition of Geneba Properties in July 2017. Following the transaction, Frasers Property will see its European portfolio grow to €1.6 bn covering over 1.3 million m2.
Panote Sirivadhanabhakdi, Group CEO of Frasers Property, said: 'Alpha Industrial complements our existing platform in Europe. From the business strategy perspective, Alpha Industrial has a focused strategy for growth, specialising in the development of green and brown-field properties for conversion into modern logistics and industrial facilities.'
He added: 'The acquisition also presents an attractive entry point, given the high quality and location of the assets, defensive portfolio metrics, and solid tenancy profile.'
Jean-Philippe Blangy, managing director, head of Asset Management at Tristan Capital Partners, said: 'Logistics is one of the most attractive real estate sectors across Europe, reflecting not only the growth in e-commerce, but also a recognition about the strength of the asset class in terms of delivering strong cash flows and long-term WALT. Together with our joint-venture partner asset manager Alpha Industrial, we have repositioned the assets to institutional quality and have now sold an aggregated portfolio of properties to the purchaser to accomplish our Funds’ objectives.'
On completion of the deal, Alpha Industrial's managing director Joerg Schroeder will become the chief investment officer of Frasers Property Europe.
