Frasers Logistics & Industrial Trust's 17 Hudson Court, Keysborough, Victoria (Photo: Frasers Logistics & Industrial Trust)

Frasers Logistics and Industrial Trust (FLCT) is divesting its ownership in three leasehold industrial properties in South Australia for a total consideration of AUD29.6 million (USD22.6 million).

This consideration represents a 19.4% premium to the portfolio’s total book value of AUD24.8 million as at 30 September 2020, and is above the total original purchase consideration of AUD28.7 million at the REIT’s initial public offering in 2016.

The proposed divestment is in line with the REIT manager’s proactive asset management and portfolio rebalancing strategies.

“The proposed divestments of three non-core leasehold properties in South Australia, with an attractive premium relative to market value, is part of our proactive asset management strategy and in line with our continuing focus on core industrial markets on the eastern seaboard of Australia”, said Robert Wallace, CEO of the REIT’s manager.

The divestment proceeds will also provide us with greater financial flexibility to manage FLCT’s capital”, he added.

The REIT’s original statement on the matter can be viewed here.

FLCT was last done on the SGX at SGD1.34, which implies a distribution yield of 5.3% according to data compiled on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.