FLCT renews management deals with Frasers property units
I'm LongbridgeAI, I can summarize articles.Frasers Logistics & Commercial Trust (FLCT) has renewed its five-year property management agreements with Frasers Property-linked entities, effective from June 19. The deals cover Australian and overseas assets, maintaining existing fee structures without unitholder approval required. Valued at $82.5 million, the arrangements qualify as interested person transactions under SGX rules but are deemed on normal commercial terms.
The agreements maintain fee structures across Australia and overseas assets.
Frasers Logistics & Commercial Trust (FLCT) has renewed its property management arrangements with Frasers Property-linked entities under a five-year framework that maintains existing fee structures and triggers disclosure requirements under Singapore Exchange interested person transaction (IPT) rules.
FLCT said the agreements cover properties in Australia and other overseas markets and replace previous contracts that expired on 19 June.
The agreements were entered into with Frasers Property Corporate Services Pte. Ltd. for non-Australian assets and FPI Property Management Services Pty Ltd for Australian assets. Both are subsidiaries within the Frasers Property group.
FLCT said the agreements run for five years from 19 June and retain the existing fee framework, with no change to the fee formula.
Property managers will continue providing leasing, marketing and asset management services for current and future properties, including rooftop solar-related arrangements where applicable.
For rooftop assets, fees will be based on sublease contracted rent rather than gross revenue, consistent with updated contractual definitions, with safeguards to avoid duplicate charging.
FLCT said the arrangements qualify as IPTs under SGX rules as Frasers Property Limited remains a controlling unitholder and the service providers are related entities.
Based on FLCT’s latest audited net tangible assets of $4.17b as at 30 September 2025, the agreements are valued at $82.5m, or about 2% of NTA. Unitholder approval is not required, though disclosure is mandatory.
The audit, risk and compliance committee of the manager said the agreements are on normal commercial terms and not prejudicial to minority unitholders.
The Australian agreement includes updated operational provisions covering budgeting processes and limits on liability in cases involving legal compliance.
It also introduces a new termination clause allowing removal of the Australian property manager for unresolved material service failures after notice.
FLCT said the renewal ensures continuity in property management following expiry of the previous agreements on 19 June.