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Sign in Sign up for a FREE subscriptionSingapore CBD property sells for $602m
Frasers Logistics & Commercial Asset Management, the manager of Frasers Logistics & Commercial Trust (FLCT), has agreed to sell Cross Street Exchange, a leasehold property in Singapore, for a consideration of S$810.8 million ($602 million).
Frasers said the proposed divestment of this non-core leasehold CBD commercial property is in line with the REIT manager’s asset management and portfolio rebalancing strategies. Following the divestment, FLCT’s portfolio weighting towards logistics and industrial will increase from 61.1 percent to 66.9 percent.
The consideration represents a 28.3 percent premium to Cross Street Exchange’s book value of S$632 million ($469 million).
The net divestment proceeds from the sale may be used to fund potential acquisition opportunities, finance capital expenditure, repay existing debt, make distributions to FLCT’s unitholders and/or other general corporate requirements.
