Frasers Logistics & Commercial Trust is expanding its European footprint after agreeing to purchase equity stakes in four logistics properties across Germany and the Netherlands. The agreed property purchase price sits at approximately €294.9 million, representing a 1.5 per cent discount to the appraised value and a 0.9 per cent discount to the average of two independent valuations. The final aggregate purchase consideration stands at around €218.1 million.

The transaction involves share purchase agreements with subsidiaries of the trust sponsor, Frasers Property Limited, and an independent third party. The portfolio consists of four freehold properties that cover 179,645 square metres of gross lettable area. The locations are fully leased to multinational corporations and third-party logistics firms operating in e-commerce fulfillment and other new economy sectors. The buildings have a weighted average lease expiry of 5.7 years, featuring built-in rent escalation tied to consumer price indices or fixed annual increases.

The chief executive officer of the REIT manager, Ms. Anthea Lee, said, “This Proposed Acquisition from our Sponsor allows FLCT to deepen its presence in two of Europe’s most resilient and trade-oriented logistics markets that is consistent with our strategy to scale our L&I portfolio. The portfolio also offers some embedded rental upside, providing reversion potential as leases expire. The Proposed Acquisition is expected to be DPUaccretive.”

The acquisitions leverage the economic stability of Germany and the Netherlands. Germany recorded a GDP of €4.5 trillion in 2025, with growth forecasts of 0.7 per cent for 2026 and 1.0 per cent for 2027. Its logistics sector remains supported by €1.6 trillion in exports and €1.4 trillion in imports. The Netherlands reported a 2025 GDP of €1.2 trillion, with trade representing 159 per cent of its economic output, anchored by continental freight from the Port of Rotterdam.

The transaction will alter the trust’s structural metrics when completed, which is scheduled for August 2026. Total portfolio occupancy will climb from 96.1 per cent to 96.3 per cent based on figures from 31 March 2026. The proportion of logistics and industrial assets within the fund will shift from 75.1 per cent to 76.6 per cent. The total property count will reach 118 assets, while the combined portfolio lease expiry will extend to 4.9 years. The purchase will be entirely funded by external debt financing, with an extraordinary general meeting to be organized following in-principle regulatory approval from the Singapore Exchange.