Frasers Centrepoint Trust (FCT) has acquired an additional 24.5% interest in a suburban shopping centre in Singapore for S$523.1m (€359m), valuing the asset at S$2.1bn.
The acquisition from FCL Emerald, a subsidiary of Frasers Property, sponsor of the listed trust, will increase FCT’s interest in the NEX shopping centre in Serangoon to 50%.
The trust has issued a private placement to raise S$200m to part-fund the transaction. It plans to sell almost 82m new shares at S$2.18 each and will finance the balance with debt.
Richard Ng, chief executive officer of the manager, said: “The acquisition follows from our initial acquisition of 25.5% in NEX in February 2023.”
FCT and Frasers Property bought a 50% stake in the mall, which is the second largest mall outside the central area of Singapore, for S$652.5m a year ago from Mercatus Co-Operative.
“NEX is an excellent asset with strong financial and operational performance and is a strategic fit to FCT’s prime suburban retail portfolio. This acquisition reinforces our focus and leadership position in the Singapore prime suburban retail market,” he said.
Post-acquisition, FCT will become the largest owner of suburban malls by floorspace, when they will represent 9.2% of its total floor space under management, placing it ahead of its nearest competitor, CapitaLand Integrated Commercial Trust, with 8.7%.
Ng said the increased stake in NEX would further diversify FCT’s income base, enhance its portfolio resilience and improve its overall retail portfolio performance.
He said the growth opportunities at NEX through asset enhancement, tenant remixing and rent improvement would support FCT’s objective to deliver regular and stable distributions to its unitholders.
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