Frasers Logistics and Commercial Trust, backed by Thai billionaire Charoen Sirivadhanabhakdi, has snapped up three more fully leased Melbourne assets.
Targeted for their relatively small size, the month-old industrial properties, 1, 11 and 17 Magnesium Place, Truganina, set the Singapore group back $61 million, reflect a circa-four per cent yield.
All up containing 25,089 square metres, with a Weighted Average Lease Expiry of 6.6 years, the buyer had the portfolio valued at the end of May – for $61.1m.
Goodman Group was the seller.
Settlement is scheduled next quarter.
Big fund targets small investments
The deal comes six months since FLCT banked A$832m for Singapore’s Cross Street Exchange, formerly known as China Square Central – a 15 level office walking distance to Raffles Place.
Four weeks ago, the trust outlaid $60.25m for a high quality office in Melbourne’s Mount Waverley.
The Magnesium Pl warehouses were targeted because of their relatively small size, which FLCT chief executive officer and fund manager, Robert Wallace, said provides “a product offering that targets a differentiated tenancy base” (story continues below).
Within the West Industry Park, they are fully leased – Signet and Goodride Tyres each rent an asset (#1 and #11, valued at $24.2m and $17.35m respectively).
LED lighting distribution Stedi and building product supplier Stoddart occupy the balance.
Heavy industrial weighting
Including the Truganina assets, industrial and logistics product comprises 66.3pc of FCJT’s portfolio.
The fund holds an interest in 102 other properties – all up worth A$6.9 billion, and 96.2pc occupied.
Sixty one are in Australia.
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