Just when I thought it will be all quiet for Frasers Logistics and Industrial Trust after their recent divestment of 80 Hartley Street asset, Frasers Logistics and Industrial Trust announce another divestment today! Frasers Logistics and Industrial Trust is going to divest Lot 102 Coghlan Road in South Australia for A$8.75 million.
The consideration represents a 36.7% premium to the Property’s book value of A$6.4 million as at 30 June 2018 and a 26.8% premium to the original purchase price of A$6.9 million at Frasers Logistics and Industrial Trust’s initial public offering in 2016.
Upon completion of the proposed divestment, Frasers Logistics and Industrial Trust’s portfolio will comprise of 59 properties in Australia, 17 in Germany and 4 in the Netherlands.
Use of Divestment Proceeds
According to the announcement, the proceeds of A$8.3 million (after deduct A$43,750 divestment fee paid to manager) may be used for
- Funding potential acquisition opportunities
- Reduce existing debt and/or other general corporate purposes
NO, the net proceeds will not be paid to unit holders!
Impact on Distribution Per Unit
The property currently contributes 0.4% of the net property income of Frasers Logistics and Industrial Trust’s portfolio. Thus, it should have minimal impact on the Distribution Per Unit (“DPU”).