FLCT to acquire prime logistics property in Singapore for S$140.3M

SINGAPORE: Frasers Logistics & Commercial Trust (FLCT) announced its plans to acquire a prime logistics property from an unrelated third party, Diamond Land.  The manager of FLCT said that the property, located at 2 Tuas South Link 1, is under contract for approximately S$140.3 million.

According to The Edge Singapore, the purchase price is 2.5% lower than the property’s appraised value of S$143.8 million, according to a valuation by Knight Frank as of Sept 30.

The property features a six-storey ramp-up logistics facility with a total net lettable area (NLA) of 56,203 square metres. As of Sept 30, it has an occupancy rate of 85.8% and a weighted average lease expiry (WALE) of around 1.8 years.

Anthea Lee, CEO of the manager, stated that this acquisition is a significant step for FLCT in entering Singapore’s logistics and industrial market.

She said, “This DPU-accretive acquisition marks FLCT’s entry into Singapore’s robust logistics and industrial market via a prime logistics property. It aligns with our commitment to grow FLCT’s logistics and industrial portfolio.”

The property is just a 2-minute drive from the Tuas Mega Port, a S$20 billion development that is already in operation and aims to streamline Singapore’s port activities by the 2040s.

Ms Lee added that “this acquisition will position FLCT to capitalise on the strong demand for logistics in Singapore while increasing the income stream derived from Singapore properties”.

Once the acquisition is completed, FLCT’s total logistics and industrial portfolio exposure is expected to rise to 71.5% from 70.9%, and its exposure to Singapore properties will increase to 11.6%.

The proposed acquisition will be funded through external debt financing and is expected to be completed by the first quarter of FY2025. /TISG

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