Frasers Property Ltd. agreed to acquire the project and asset management business of Alpha Industrial GmbH & Co. KG and 22 of its logistics and industrial assets in Germany and Austria for about €285.2 million.
The assets, to be bought through units of Frasers' Frasers Property Europe subsidiary, were valued at about €581.3 million as at 2017-end, and are mainly owned and managed by Alpha Industrial Holding SA. The purchase expands Frasers Property Europe's portfolio to €1.6 billion, which covers more than 1.3 million square meters of gross leasable area.
Under the business acquisition agreement, Frasers subsidiaries will buy 100% of Cologne, Germany-based development and asset management service providers Alpha KG and Alpha Industrial Management GmbH. The companies manage more than 425,000 square meters of third-party asset management mandates and developed over 300,000 square meters of logistics real estate.
Meanwhile, the portfolio to be acquired comprises 16 completed logistics and light industrial properties, which have an average occupancy rate of 98.2%, as of Jan. 31, in Germany and Austria; five German developments that are partly or wholly under development and will be acquired under forward-purchase agreements; and a standing asset and development plot in Duisburg, Germany.
The sale and purchase agreements signed by the Singaporean company's subsidiaries are subject to certain conditions, including merger control clearance, consent for change of control or release documents from certain lenders and property-related conditions.
Following the deals' completion, Alpha Industrial Managing Director Jörg Schröder will take on the role of chief investment officer at Frasers Property Europe, according to a release. Frasers plans to pay for the properties and the business in cash and will be funded from borrowings and internal resources, according to a separate filing.