12 Oct 2017

The Business Times

By LYNETTE KHOO

Singapore

FRASERS Centrepoint Limited (FCL) is entrenching its presence in Germany further with the acquisition of three companies that hold two warehouse facilities in Germany.

In a late night regulatory filing on Tuesday, FCL said its indirect subsidiary Frasers Property Investments (Europe) has, through wholly owned subsidiaries, entered into a conditional sale and purchase agreement to acquire three companies in Germany for 42.4 million euros (about S$67.83 million).

It will acquire 94.8 per cent each in Logipark Moosthenning GmbH and HJäger Ges für Projektentwicklung von Immobilien mbH, and 100 per cent of Simblafis GmbH.

The companies hold, in aggregate, the freehold interest in two warehouse facilities located in Moosthenning, Bavaria, and a photovoltaic system located on the roof of one of the warehouses.

Spanning a gross lettable area of 72,558 square metres, these facilities are leased on a long-term basis to a leading German car manufacturer for warehousing of automotive spare parts.

The purchase will be funded from borrowings and internal resources, FCL said. The assets were valued at 66.25 million euros by BNP Paribas Real Estate.

FCL has been growing its overseas presence and recurring income sources. It ventured into Germany's logistics and industrial market earlier this year through a stake acquisition of Geneba Properties, where it now owns a 99.4 per cent stake. Geneba manages a property portfolio that consists primarily of logistics and light industrial properties in Germany and the Netherlands.

In Germany, FCL operates serviced residences under the Capri by Fraser brand in Frankfurt and Berlin. Another serviced residence under Fraser Suites brand is still under construction in Hamburg.

Elsewhere in Europe, FCL agreed to acquire four freehold business parks in the UK for £686 million (S$1.2 billion) last month. Post-acquisition, on a pro forma basis, FCL would have around S$4.2 billion of assets in the UK and Europe, while commercial properties as a proportion of FCL's S$26.8 billion of total assets will increase to around 30 per cent, the group said last month.

FCL group CEO Panote Sirivadha-nabhakdi said then that the group can potentially benefit from the "network effect" arising from being present in the industrial, logistics, commercial and business park sectors in Australia, Germany, the Netherlands, Singapore and Thailand.

Shares of FCL closed two cents higher at S$2.08 on Wednesday.

Source: The Business Times © Singapore Press Holdings Limited. Reproduced with permission