Last December, Frasers Logistics and Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) proposed a merger between the two into one enlarged REIT. FLT will acquire all units of FCOT for about S$1.54 billion via a combination of cash and new units. FCOT unitholders will receive S$0.151 in cash and 1.233 new units in FLT at an issue price of S$1.24 per unit. This means that for every 1,000 FCOT shares, FCOT unitholders receive $151 in cash and 1,233 of FLT units.
Post-merger, FLT also plans to acquire a 50% interest in Farnborough Business Park in the UK. Farnborough Business Park is a business park which offers a diversified tenant mix focused mainly in engineering, pharmaceuticals and banking. The property has a 99% occupancy rate with more than 80% of its tenant leases expiring in four years or more.
After the successful merger and acquisition, FLT’s DPU and NAV