Melbourne industrial portfolio divested for A$288.6 Million at strong premium.
In Australia, we have sold five prime freehold industrial properties in Melbourne to wholly-owned subsidiaries of ESR-REIT.
The transaction involves a gross consideration of A$288.6 million (~S$258.4 million), with a net purchase consideration of A$276.8 million (~S$247.9 million) after price adjustments for outstanding lease incentives and rental guarantees.
The net consideration of A$276.8 million reflects a solid premium of approximately 7.77% over Frasers Property's most recent book valuation of the assets.
This premium clearly demonstrates the embedded value and high quality of Frasers Property Industrial's developments. It also highlights our ability to carry out strategic transactions that generate significant and tangible value.
The divestment directly supports our core strategy of active portfolio management and capital recycling. The sold assets include five modern, high-grade logistics and warehouse facilities situated across Melbourne's key industrial submarkets (Truganina, Derrimut, and Keysborough):
- 15 & 33 Archer Road, Truganina VIC
- 4-12 Doriemus Drive, Truganina VIC
- 64 West Park Drive, Derrimut VIC
- . 39 Naxos Way, Keysborough VIC
- 58-76 Naxos Way & 68 Atlantic Drive, Keysborough VIC
These assets total approximately 1.3 million square feet of gross lettable area, with a strong 90% occupancy rate and a weighted average lease expiry (WALE) of 3.2 years. The properties are fronted by leading institutional tenants, including CEVA Logistics, Silk Logistics, and Nick Scali.
Read more:Divestment of five assets in Australia