26 Jan 2023
SINGAPORE, 26 JANUARY 2023
Frasers Centrepoint Asset Management Ltd. (“FCAM”) as the manager of Frasers Centrepoint Trust (“FCT”) (the “Manager”) and Frasers Property Limited (“Frasers Property”, and together with its subsidiaries, the “Group”), wish to announce the joint acquisition of 50.0% interest in Gold Ridge Pte. Ltd. (the “Target”) (the “Acquisition”) which holds the suburban retail mall NEX, located at 23 Serangoon Central, Singapore 556083 (the “Property”) for a purchase consideration of S$652.5 million (the “Consideration”).
The Acquisition agreement was signed today between Frasers Property Coral Pte. Ltd. (in its capacity as trustee-manager of NEX Partners Trust1, a private trust held by (i) HSBC Institutional Trust Services (Singapore) Limited (in its capacity as trustee of FCT) and (ii) FCL Emerald (1) Pte. Ltd., a wholly-owned subsidiary of Frasers Property) as purchaser, and Mercatus Tres Pte. Ltd. as vendor.
The Consideration was negotiated on a willing-buyer and willing-seller basis, taking into account, among others, the net asset value of 100.0% of the Target of S$1,305.0 million (as at 30 September 2022), with reference to the agreed property value of the Property of S$2,077.8 million (the “Agreed Property Value”). The appraised value of the Property by independent valuer Colliers International Consultancy & Valuation (Singapore) Pte. Ltd. appointed by FCT and Frasers Property is S$2,078.0 million as at 31 December 2022. The net property income (the “NPI”) yield based on the Property’s NPI in year 2022 is in the region of high 4%.
Mr Richard Ng, Chief Executive Officer of FCAM, said, “NEX is a complementary fit to FCT’s existing suburban retail property portfolio. This acquisition will further enhance FCT’s portfolio diversification and strengthen its performance.”
Ms Soon Su Lin, Chief Executive Officer of Frasers Property Singapore, said, “Retail is one of the five asset classes in Frasers Property’s multinational portfolio. This investment in NEX further strengthens our focus in the suburban retail segment where we already have an established platform and strong capabilities.”
NEX is located within the Serangoon housing estate which has an estimated resident population of 68,800 with 21,634 Housing Development Board (HDB) flats in the area2. NEX is the largest suburban retail mall in Northeast Singapore with total net lettable area of approximately 634,631 square feet spread over seven retail levels, including two basement levels, and the committed occupancy was 99.9% as at end-November 2022. The notable brands among its 332 stores3 include FairPrice Xtra, Isetan, Food Junction, Shaw Theatres, H&M, Food Republic, &Joy Japanese Food Street, Courts, Beauty in the Pot and Cold Storage Supermarket. NEX is easily accessible via the integrated Serangoon Bus Interchange and Serangoon Mass Rapid Transit (the “MRT”) station which connects to the North-East Line and Circle Line of the MRT network, making it a convenient destination for the surrounding residential population and commuters.
This press release is to be read in conjunction with the announcements by FCT and Frasers Property on the proposed joint acquisition of 50% of the shares of Gold Ridge Pte. Ltd. which holds the property at 23 Serangoon Central both dated 26 January 2023.