Singapore’s Frasers Logistics & Industrial Asset Management has sold a half-stake in a Coles cold storage distribution centre in Queensland to German asset manager DWS for $134.2 million.
The property was purpose built for Coles in 2008 and is situated approximately 29 kilometres south of Brisbane’s Central Business District and has a total gross lettable area of 54,245sqm.
“We are thrilled to partner with FLT on this joint venture ownership and look forward to working with the team. The property provided an attractive opportunity to acquire a super prime, refrigerated, logistics facility and marks the first investment in Australia for our open-ended Asia core real estate strategy,” Victoria Sharpe, Head of Real Estate for Asia Pacific with DWS, said.
“We are pleased to enter into a partnership with DWS to co-own and co-manage the Property. Coles is presently FLT’s single largest tenant at 7.0% of GRI5 which is expected to reduce to 3.6% after the divestment of a 50% interest, therefore providing a strategic opportunity for FLT to reduce its portfolio’s tenant concentration risk. This in line with our active asset management strategy, with the divestment proceeds providing FLT with greater financial flexibility,” Robert Wallace, Chief Executive Officer of the REIT Manager, said.