Frasers industrial REIT to issue 220 million new units for German, Australian acquisitions

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Frasers Logistics & Industrial Trust (FLT) has raised gross proceeds of approximately SGD258.1 million through a private placement exercise.

The placement will see the issue of 220,000,000 new units in the REIT to selected institutional, and other qualified investors at an issue price of SGD1.173 each.

This issue price came in at the top end of the indicative price range, and represents a 1.2% discount to the REIT’s adjusted volume-weighted average price.

The exercise drew strong demand from new and existing investors, which led to the book being approximately 3.2 times subscribed, said FLT in a statement on 31 July.

“We are delighted by the overwhelming response to our private placement, which is reflective of investors’ confidence in FLT, said Robert Wallace, CEO of the REIT’s manager.

“The proceeds raised will fund our proposed acquisition of interests in 12 prime logistics properties in Germany and Australia”.

“The proposed acquisition will further deepen FLT’s presence in the two attractive logistics markets of Germany and Australia”,he added.

This acquisition would increase FLT’s portfolio value to approximately AUD3.5 billion at completion.

“FLT’s portfolio will be enhanced through further geographical diversification, an increased freehold component, reduced tenancy concentration risk and a longer weighted average lease expiry”, said the REIT.

FLT was last done on the SGX at SGD1.20, which gives a yield of about 5.7% according to data from the Singapore REITs fundamentals table.

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