Frasers Logistics & Commercial Trust grows European presence with acquisition of 4 properties

[SINGAPORE] Frasers Logistics & Commercial Trust (FLCT) has acquired equity interests in four property-holding companies, which collectively own two freehold logistics properties in Germany and two in the Netherlands.

The agreed purchase price for the four properties is around 294.9 million euros (S$441.5 million), the real estate investment trust’s (Reit) manager announced on Monday (May 25). This represents a 1.5 per cent discount to their appraised value and a 0.9 per cent discount to the average of two independent valuations for each property.

The manager has entered into share purchase agreements with subsidiaries of the sponsor Frasers Property (FPL) and a third party unrelated to both FLCT and FPL. The total consideration for the proposed acquisition is about 218.1 million euros.

“This proposed acquisition from our sponsor allows FLCT to deepen its presence in two of Europe’s most resilient and trade-oriented logistics markets that is consistent with our strategy to scale our logistics and industrial (L&I) portfolio,” said Anthea Lee, CEO of the manager, adding it is expected to be distribution per unit accretive.

She also noted that the portfolio offers “some embedded rental upside, providing reversion potential as leases expire”.

The new properties comprise four freehold assets with a total gross lettable area of about 179,645 square metres. They are fully leased to established tenants, including multinational corporations and third-party logistics providers serving new economy sectors such as e-commerce fulfilment.

The properties have a weighted average lease expiry (WALE) of 5.7 years, and are expected to benefit from rental escalation through consumer price index-linked adjustments or fixed rental increases built into the leases. The portfolio also offers potential upside from rental reversions as leases expire, FLCT’s manager said.

Strategically located within key logistics hubs in Germany and the Netherlands, the properties support the core distribution needs of both markets and complement FLCT’s existing European portfolio, which was fully occupied as at Mar 31, 2026. Both markets, the manager noted, have experienced strong logistics real estate fundamentals, with prime rents increasing significantly across key submarkets over the past five years.

Following completion of the acquisition, the Reit’s portfolio occupancy is expected to improve from 96.1 per cent to 96.3 per cent, while the proportion of logistics and industrial assets in its portfolio will rise from 75.1 per cent to 76.6 per cent. The enlarged portfolio’s WALE is also expected to strengthen to 4.9 years, supported by the new assets’ 5.7-year WALE.

The acquisition will increase the number of properties in FLCT’s portfolio to 118.

FLCT said the acquisition will be funded through external debt financing and is expected to be completed by August 2026. It is subject to approval in principle from the Singapore Exchange and unitholders. A circular will be issued to unitholders, and an extraordinary general meeting will be convened.

Shares of FLCT closed flat at S$0.98 on Monday, before the news.