Frasers Logistics & Commercial Trust Announces Accretive Acquisition of Prime Dutch Logistics Property

Key Highlights for Investors

• Acquisition of a newly completed, prime logistics facility in Hapert, the Netherlands for €43.0 million (approx. S\$64.1 million).
• 100% occupancy rate with a long weighted average lease to expiry (WALE) of 9.5 years, fully leased to global logistics major DSV Air & Sea Nederland B.V.
• Acquisition price is at a 3.3% discount to the independent valuation (€44.45 million).
• DPU-accretive acquisition expected to increase FLCT’s distribution per unit.
• FLCT’s portfolio will grow to 114 properties valued at approximately S\$7.0 billion, strengthening its logistics and industrial weighting.
• Strategic location: 1.4 km from A67 motorway, with access to major cities and airports.
• Property has an Energy Performance Certificate (EPC) rating of A+++ and features CPI-linked rental adjustments.
• Increases FLCT’s exposure to the Netherlands from 5.5% to 6.4% of portfolio value.
• Funding through a mix of external debt and/or existing cash resources.

Detailed Overview of the Acquisition

Frasers Logistics & Commercial Trust (FLCT) has completed the acquisition of a modern, high-quality logistics facility at Diamantweg 26, Hapert, Netherlands. The transaction was concluded on 15 April 2026 and aligns with FLCT’s ongoing strategy to expand its logistics and industrial portfolio with prime, income-generating assets.

The property, built in October 2025 on freehold land, comprises a gross lettable area of 25,603 square metres, with a market-leading EPC rating of A+++. It is fully leased to DSV Air & Sea Nederland B.V., a subsidiary of DSV, a leading integrated transport and logistics group with a presence in over 90 countries and a market capitalisation of around USD 60 billion. DSV is publicly listed on the Danish stock exchange and carries robust credit ratings (A- from S&P, A3 from Moody’s).

The purchase price of €43.0 million was negotiated on a willing-buyer, willing-seller basis and is 3.3% below the independently appraised value. After deducting an outstanding rent-free incentive of €0.85 million (approx. S\$1.27 million), the net consideration is €42.1 million (approx. S\$62.8 million). This is expected to be funded through a combination of external debt and/or existing cash resources.

Strategic and Financial Rationale

• The acquisition is expected to be DPU-accretive on a pro forma basis, meaning it should increase the distribution per unit for existing shareholders.
• The addition of this asset increases the portfolio’s logistics and industrial weighting from 75.1% to 75.3%, supporting FLCT’s strategic target of growing its high-quality logistics and industrial property holdings.
• The property’s modern design, strong sustainability credentials, and long WALE provide income stability and mitigate operational risks.
• The lease to a global blue-chip tenant (DSV) further enhances income visibility and reduces the risk of vacancy.
• The property also benefits from CPI-linked rental adjustments, offering a hedge against inflation and supporting predictable rental income growth.

Market Context

The Dutch logistics market is expected to remain resilient, supported by constrained supply, supply chain diversification, and nearshoring trends. The property’s proximity to key transport links, including the A67 motorway and major airports, enhances its appeal for logistics operations and long-term tenant retention.

Potential Price-Sensitive Information

• The acquisition is DPU-accretive, which may positively impact FLCT’s share price as it signals enhanced returns for unitholders.
• The transaction increases the trust’s portfolio value and strengthens its presence in the fast-growing logistics sector, particularly in the Netherlands.
• The long-term lease with a reputable tenant and CPI-linked rental increases provide income security and growth visibility.
• Funding is via a prudent mix of debt and cash, but investors should monitor interest rate trends as they could impact future returns.

About FLCT and Frasers Property Limited

FLCT is a Singapore-listed REIT with 113 industrial and commercial properties (pre-acquisition), diversified across Australia, Germany, Singapore, UK, and the Netherlands, with a portfolio value of about S\$6.9 billion. The trust is part of the FTSE EPRA Nareit Global Real Estate Index Series and is sponsored by Frasers Property Limited, an integrated real estate investor-developer-operator with S\$39.7 billion in assets as of September 2025. Frasers Property operates across multiple asset classes and is a key player in the Asia-Pacific and European real estate markets.

Conclusion

This acquisition underscores FLCT’s commitment to enhancing portfolio quality, income stability, and growth prospects for unitholders. The addition of a prime, fully leased logistics asset with a long WALE, strong tenant profile, and sustainable features is a clear positive for investors and may be a catalyst for share price appreciation.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a solicitation, or an offer to buy or sell securities. Investments carry risks, including possible loss of principal. Please consult your financial adviser before making any investment decisions. The information herein is based on publicly available sources and may contain forward-looking statements subject to risks and uncertainties. Actual results may differ materially from projections. The author and publisher are not liable for any losses arising from reliance on this article.

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