Frasers Centrepoint Trust (FCT), part of Singapore’s Frasers Group, has paid S$197.2m (€126m) to acquire a remaining 12.7% interest in PGIM Real Estate AsiaRetail Fund (ARF).
The acquisition marks a complete exit of the original investors from the open-ended core fund, which is now 100%-owned by the Frasers Group. FCT will hold a 36.89% interest in ARF when the acquisition is completed this month.
ARF, the largest non-listed retail mall fund in Singapore, owns five retail malls in close proximity to subway stations, an office property in Singapore, and one retail mall in Malaysia.
Since 2018, when investors began redeeming their investments in ARF, their shares have been purchased by companies in the Frasers group as they have become available.
Richard Ng, CEO of Frasers Centrepoint Asset Management, FCT’s manager, said the additional stake marked a “significant step forward” in ensuring FCT’s ability to continue to deliver long-term growth and returns.
“The ARF portfolio of suburban retail malls shares similar characteristics to FCT malls, which focus on essential spending and food and beverage trades as well as their locations in populous residential areas in close proximity to transportation nodes,” he said.
“These characteristics continue to underpin the resilience of the suburban retail sector, notwithstanding the difficult COVID-19 period.”
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