Singapore listed Frasers Centrepoint Trust (FCT) has sold a suburban shopping mall in the city state to an unrelated private investment group, Growth Capital, for S$467 million (€316m).
The asset, White Sands, is located in Pasir Ris, a residential estate in the eastern region of Singapore. The six-level mall was last extensively refurbished a decade ago.
Richard Ng, chief executive officer of the manager, said: “White Sands, the smallest mall in our portfolio, has performed well since acquisition. The divestment is part of our proactive portfolio management strategy to strengthen FCT’s portfolio resilience and to unlock value for unitholders.”
Ng said the transaction would enhance FCT’s financial position through the lowering of its aggregate leverage from 40% to 36.5%, strengthening its financial position and creating additional debt headroom to redeploy for future growth opportunities.
Upon completion of the divestment, FCT’s retail portfolio will comprise eight retail properties, located in the suburban regions of Singapore. FCT’s retail property portfolio will have an aggregate net lettable area of approximately 2.84m sq ft, anchored by essential trades and services.
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