Frasers Logistics & Commercial Trust's property at 1 Burilda Close, Sydney, Australia. (Photo: Frasers Logistics & Commercial Trust)Frasers Logistics & Commercial Trust's property at 1 Burilda Close, Sydney, Australia. (Photo: Frasers Logistics & Commercial Trust)

Singapore-listed Frasers Logistics & Industrial Trust has exercised its call option to acquire 1 Burilda Close in Sydney, Australia, for a total purchase consideration of approximately AUD58.2 million (USD43 million).

The logistics property, which is located approximately 45 km from Sydney’s central business district, is fully leased to Martin-Brower Australia Pty Ltd for a term of 20 years.

Its acquisition enlarges the REIT’s portfolio to 54 properties, with a total gross lettable area of approximately 1.2 million square metres, and value by 3.5% to AUD1.73 billion.

Frasers Logistics & Industrial Trust’s portfolio now features an occupancy rate of 99.3%, up from 99.2% before acquisition, and a weighted average lease expiry (WALE) of 7.0 years, up from 6.6 years previously.

“The newly completed Martin Brower property will have an immediate and positive impact to [Frasers Logistics & Industrial Trust’s] distribution per unit”, said Robert Wallace, CEO of the REIT’s manager.

The acquisition has been funded via a AUD41.0 million debt facility which was drawn down from the REIT’s five-year revolving credit facility, and approximately AUD20.5 million from its own working capital.

Following the acquisition, the REIT’s aggregate leverage will increase from 28.2%, as at 30 September 2016, to 29.8%.

Units of Frasers Logistics & Industrial Trust last changed hands on the Singapore Exchange at SGD0.92.

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.