Frasers Logistics raises $188m through private placement

The new properties have 100-per cent occupancy, with quality tenants including Hermes, Bosch, Kentner, FDM, and Edeka. Photo from company presentation.

Frasers Logistics & Industrial Trust (FLT), Singapore Mainboard-listed logistics-focused real estate investment trust, hasraised gross proceeds of S$258.10 million ($188.27 million) through a private placement of 220 million units priced at S$1.173 ($0.860) per unit.

A major part of the proceeds (S$242.60 million) will be used to partially fund the proposed acquisition of 12 logistics facilities in Australia, and Germany.

The private placement was oversubscribed by approximately 3.2 times with strong demand coming from new and existing investors.

The placement was also priced at 1.2 per cent discount to the adjusted volume weighted adjusted price (VWAP) of S$1.2122 per unit, and was also priced the top-end of the proposed pricing range of S$1.143 and S$1.173 per new unit.

Earlier this month, Frasers had announced that it was acquiring interests in 12 freehold logistics properties for about $425 million from its sponsor Frasers Property.

The proposed acquisition involved nine freehold logistics properties in Germany and three freehold logistics properties in Australia, with purchase price of S$493.3 million and S$119.2 million, respectively.

The proposed acquisition deepens FLT’s presence in two attractive logistics markets with the addition of nine properties in Germany and three properties in the eastern seaboard of Australia, said Robert Wallace, CEO of the Reit manager, in the earlier announcement.