Frasers Centrepoint Trust To Acquire Remaining 63.1% In AsiaRetail Fund Limited
September 4, 2020 – Frasers Centrepoint Asset Management Ltd., the manager of Frasers Centrepoint Trust (FCT) announced the proposed acquisition of the remaining approximately 63.1% of the total issued share capital of AsiaRetail Fund Limited for approximately S$1.057 billion (US$770 million) from a wholly-owned subsidiary of Frasers Property Limited, the sponsor of FCT.
Mr Richard Ng, Chief Executive Officer of FCAM said, “This transaction is a follow-through of our strategy to increase FCT’s stake in ARF. We acquired the initial 17.1% stake in ARF in April 2019, followed by acquisitions of additional interest that increased FCT’s stake to the current 36.9% when the opportunity presented itself.
The acquisition of the remaining 63.1% stake is the final step to carry that strategy to fruition.Upon completion of the Transactions, FCT’s retail properties in its portfolio will increase from seven to 11, and its net lettable area will expand by about 64% to 2.3 million square feet, placing FCT among the largest suburban retail mall owners in Singapore.
FCT’s portfolio size will increase to approximately S$6,650 million. Post the proposed Equity Fund Raising (as defined below), FCT is expected to be among the top ten largest S-REITs by market capitalisation.”
ENLARGED SCALE WITH PORTFOLIO GROWTH AND DIVERSIFICATION
ARF’s portfolio of suburban retail malls shares similar characteristics to FCT’s malls, which includes the focus on Essential Services5, being located in populous residential areas and above or near transportation nodes. ARF’s Singapore portfolio includes five retail malls: Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1 and one office property Central Plaza.
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