FLCT to acquire Tuas logistics facility for S$140.3 million

Trust’s portfolio of logistics and industrial assets will increase from 70.9% to 71.5% after the acquisition is completed

FRASERS Logistics & Commercial Trust (FLCT) is set to acquire a six-storey ramp-up logistics facility in Tuas for S$140.3 million.

The facility, located at 2 Tuas South Link 1, spans a net lettable area of 56,203 square metres and has an occupancy rate of 85.8 per cent.

As at Sep 30, the Green Mark Platinum-certified property had a weighted average lease expiry of 1.8 years, with rental escalations expected, FLCT’s manager said in a bourse filing on Thursday (Oct 17).

The acquisition is slated for completion by the first quarter of the 2025 financial year, after which FLCT’s portfolio of logistics and industrial assets will increase from 70.9 per cent to 71.5 per cent.

Its Singapore-based exposure will also rise from 9.8 per cent to 11.6 per cent.

The total acquisition cost will be paid in cash and funded through external debt financing, with the purchase price of S$140.3 million reflecting a 2.5 per cent discount from the property’s independent valuation of S$143.8 million, as at Sep 30.

“This DPU (distribution per unit) accretive acquisition marks FLCT’s entry into Singapore’s robust logistics and industrial market via a prime logistics property,” said Anthea Lee, CEO of FLCT’s manager.

“Located in proximity to the Tuas Mega Port, this acquisition will position FLCT to capitalise on the strong demand for logistics in Singapore while increasing the income stream derived from Singapore properties,” she added.