Divest Cross Street Exchange in Singapore for S$810.8m
- Frasers Logistics & Commercial Trust (FLT) has entered into a sale and purchase agreement with an unrelated third-party purchaser for the sale of the leasehold property at 18, 20 and 22 Cross Street (Cross Street Exchange) for S$810.8 m. The consideration represents a 28.3% premium to Cross Street Exchange’s book value of S$632.0m as at Sep 21.
- The proposed divestment of the non-core leasehold CBD commercial property is in line with the FLT’s proactive asset management and portfolio rebalancing strategies. FLT will re-weight its portfolio towards the logistics and industrial asset class.
- Assuming that 49.2% of the net proceeds are used to repay outstanding debt, FLT’s aggregate leverage is expected to be lowered by 4.4ppt from 33.7% % to 29.3 % on a pro forma basis with debt headroom increased to S$3,017.2m post-divestment.
- The completion of the proposed divestment is expected to take place on 31 Mar 22.