Frasers Logistics & Commercial Trust (FLCT) is acquiring 89.9% of the equity interests in the property-owning companies that hold four logistics assets in Germany.

The stake in these assets is being acquired for EUR129.5 million (SGD188.9 million).

As at 31 December 2023, the assets comprise four buildings with a total gross lettable area of approximately 72,422 square metres.

It collectively features a WALE of 6.1 years and will benefit from rent escalation, with consumer price index-linked indexation incorporated in its leases, said the REIT.

The buildings are fully leased to quality tenants which include multinational corporations such as Schenker AG, DACHSER GmbH & Co. KG and Hermes Germany GmbH.

These are existing tenants within the REIT’s portfolio.

The purchase consideration will be funded through external debt financing and the acquisition is expected to settle by March 2024.

FLCT was last done on the SGX at SGD1.02, which presently implies a distribution yield of 7.47% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

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