10 Stanton Road in Sydney, a property in the initial portfolio of Frasers Logistics & Industrial Trust (Photo: Frasers Logistics & Industrial Trust)10 Stanton Road in Sydney, a property in the initial portfolio of Frasers Logistics & Industrial Trust (Photo: Frasers Logistics & Industrial Trust)

Frasers Centrepoint Limited announced on 3 June that a preliminary prospectus for an industrial REIT, which will be known as the Frasers Logistics & Industrial Trust, has been lodged with the Monetary Authority of Singapore.

Frasers Logistics & Industrial Trust’s initial public offering (IPO) will be priced between SGD0.85 and SGD0.89, according to the preliminary prospectus.

The REIT will hold an initial portfolio of 51 Australian industrial properties, and be granted with call option rights to acquire three more Australian industrial properties post-listing.

Frasers Logistics & Industrial Trust will be acquiring its initial portfolio of properties from Frasers Property Australia, which is a subsidiary of Frasers Centrepoint Limited. The properties will be acquired at the aggregate purchase consideration of AUD1,578.2 million (SGD1,573 million).

Post IPO, Frasers Centrepoint Limited will hold a stake of approximately 22.5% in Frasers Logistics & Industrial Trust.

Another major subscriber in the IPO is TCC Group Investments Limited, which will be subscribing for between 89,887,000 units and 94,117,000 units, representing a stake of between 6.3% and 6.6% respectively, at the IPO price.

The joint financial advisers, global coordinators and the joint issue managers for Frasers Logistics & Industrial Trust’s initial public offering (IPO) are Citigroup Global Markets Singapore and DBS Bank.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.