SINGAPORE - Frasers Logistics & Industrial Trust (FLT) has acquired a freehold Dutch logistics property from Frasers Property Investments (Europe) BV, an indirect wholly owned subsidiary of its sponsor Frasers Property Limited.

The agreed property purchase price is 25.36 million euros (S$39.8 million), and the consideration for the transaction is about 24.8 million euros.

The property, located at Mandeveld 12 in the city of Meppel in the Netherlands, is a modern, freehold logistics facility with a gross lettable area (GLA) of 31,013 sq m, with a long WALE (weighted average lease expiry) of about 14.9 years.

It is fully leased to Dutch multinational dairy company FrieslandCampina.

As the acquisition constitutes an interested party transaction, the acquisition fee payable to manager Frasers Logistics & Industrial Asset Management will be in the form of FLT units, which cannot be sold within one year from the date of issuance.

The lease benefits from annual consumer-price-index indexation and the property also has an additional land plot adjacent to the existing facility, which provides possibility for future building expansion, FLT said in a press statement.

The Reit (real estate investment trust) also said the acquisition increases FLT's footprint in the Dutch logistics and industrial sector.

"The acquisition presents a strategic opportunity to deepen FLT's footprint in the highly sought-after Dutch logistics and industrial sector, which has benefited from sustained economic growth and remains an important European transportation and logistics hub," said the chief executive of the Reit's manager, Mr Robert Wallace.

"With an NPI (net property income) yield of 5.4 per cent, the acquisition is also accretive to FLT's distribution per unit," he added.

Post-acquisition, FLT's portfolio will rise to 83 properties with a total GLA of some two million sq m. FLT had a portfolio value of about A$2.9 billion (S$2.85 billion) as at June 30, 2018.

FLT's units were trading flat at $1.02 as at 10.26am on Thursday.