Frasers Centrepoint Ltd. is looking to fortify its foothold in Europe through the roughly €257 million cash acquisition of a portfolio of six cross-dock facilities in Germany.
The Singapore-listed company is purchasing the portfolio from German developer ECE Projektmanagement GmbH in a bid to enter the German last-mile logistics sector.
The assets, which occupy 426,439 square meters of land, have a combined lettable area of 75,478 square meters and are spread across Heilbronn, Mainz, Berlin, Augsburg, Hamburg and near Leipzig.
The assets are newly built or are to be built, and are fully pre-leased to Hermes Germany GmbH for a 15-year term.
Frasers will finance the acquisition using borrowings and internal resources.
Completion of the purchase of the still-to-be-constructed Heilbronn, Mainz and Berlin facilities are slated for Feb. 28, 2018, while the acquisition of the Augsburg, Hamburg and Halle facilities are scheduled to be settled March 31, 2018; Nov. 30, 2018; and March 31, 2019, respectively.