Frasers Property to buy 22 assets in Germany, Austria

$460m portfolio comprises light industrial and logistical projects

Frasers Property is set to acquire 22 logistics and light industrial assets in Germany and Austria, mainly owned and managed by developer Alpha Industrial for €282.5 million (S$460 million).

The assets include 16 completed logistics and light industrial facilities - with a combined gross leasable area (GLA) of 393,800 sq m - that are located in key industrial and logistics hubs in Germany and Austria.

With a tenant base of reputable national and international corporations and a weighted average lease expiry of 6.2 years, the portfolio will contribute stable, recurring income to Frasers Property Europe (FPE), said Frasers Property.

In addition, FPE will acquire six logistical projects as development and forward purchases with a total additional GLA of about 162,500 sq m.

BNP Paribas Real Estate has valued the entire portfolio at €581.25 million. The consideration will be paid in cash and be funded from borrowings and internal resources.

The Alpha Industrial management team will become an integral part of Frasers Property's European platform, which Frasers Property started building with the acquisition of Geneba Properties NV in July last year.

Upon completion of the acquisition, Alpha Industrial managing director Jorg Schroder will be appointed chief investment officer of FPE.

"Alpha Industrial complements our existing platform in Europe," said Frasers Property group chief executive Panote Sirivadhanabhakdi.

"From the business strategy perspective, Alpha Industrial has a focused strategy for growth, specialising in the development of greenfield and brownfield properties for conversion into modern logistics and industrial facilities.

"The acquisition also presents an attractive entry point, given the high quality and location of the assets, defensive portfolio metrics and solid tenancy profile."

With this acquisition, FPE's property portfolio will grow to €1.6 billion and more than 1.3 million sq m of GLA.

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A version of this article appeared in the print edition of The Straits Times on February 20, 2018, with the headline Frasers Property to buy 22 assets in Germany, Austria. Subscribe