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16 Jul 2025
Frasers Logistics & Commercial Trust divests Melbourne CBD asset for A$192.1M to boost logistics focus and cut leverage
Summary:
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FLCT is divesting 357 Collins Street, Melbourne for A$192.1 million (S$161.4 million), slightly above its A$191.0 million valuation.
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The 25-storey office asset represented 2.4% of FLCT's portfolio value and 1.8% of net property income.
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The sale is part of FLCT’s strategic shift away from office assets toward logistics and industrial properties.
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Post-divestment, logistics & industrial weighting increases from 72.4% to 74.2%, portfolio occupancy improves from 93.9% to 95.2%, and WALE (weighted average lease expiry) lengthens to 4.8 years.
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Net proceeds of S$159.3 million may be used to repay debt, reducing leverage from 36.1% to 34.6%, and increasing debt headroom to ~S$2.06 billion.
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Completion expected by 30 September 2025.