Singaporean REIT company FLT plans to buy $453.3 mln stake in 12 properties

Frasers Logistics & Industrial Trust (FLT), a Singaporean real estate investment trust (REIT) company, intends to buy stakes in 12 freehold logistics properties in Germany and Australia for A$644.7 million ($453.3 million).

Under the transaction, FLT will pay $365 million to acquire interests in nine German properties and also pay $88.3 million for the stake in three Australian assets from the subsidiaries of its sponsor, Frasers Property.

FLT expects the proposed deal to strengthen it via geographical diversification, a higher proportion of freehold properties, reduced tenant concentration and a longer weighted average lease expiry of 6.7 years, from 6.5 years as at March 31.

Subject to, among other things, approval from unitholders of FLT, the acquisition is expected to be completed by the end of August this year.