Frasers Property, a Singapore-listed firm under Thai billionaire Charoen Sirivadhanabhakdi's control, is divesting four European logistics properties to its subsidiary, Frasers Logistics and Commercial Trust (FLCT). The sale is valued at 294.9 million euros, which translates to approximately $343 million. This transaction is part of Frasers Property's strategy to recycle capital and inject stable, mature investment properties into its REITs to optimize capital productivity and support growth.
The properties being sold include two logistics facilities in Germany and two in the Netherlands. These assets collectively span 179,645 square meters of lettable area and are fully leased, including to e-commerce companies. The acquisition is expected to benefit FLCT by potentially increasing its earnings and offering upside to its rents. This move will also boost FLCT's portfolio occupancy rate from 96.1% to 96.3% and increase the proportion of logistics assets in its portfolio from 75.1% to 76.6%. After the completion of this transaction, Frasers Logistics will own 118 properties across Australia, Germany, the Netherlands, Singapore, and the United Kingdom.
Anthea Lee, CEO of Singapore-listed REIT Management, commented that this acquisition allows FLCT to deepen its presence in two of Europe's most resilient and trade-oriented logistics markets. Charoen Sirivadhanabhakdi, whose family has an estimated net worth of $11.7 billion, controls Frasers Property and has interests in other major companies such as Chang Beer maker Thai Beverages, packaging company Berli Jucker, Thai real estate developer Asset World, and Thailand's Big C Supercenter supermarket chain. This divestment aligns with the broader financial strategy of his extensive business empire.
