30 Jun 2020
SINGAPORE, 30 JUNE 2020
Frasers Centrepoint Asset Management Ltd. (“FCAM”) as the manager of Frasers Centrepoint Trust (“FCT”), is pleased to announce that FCT Holdings (Sigma) Pte. Ltd., a wholly owned subsidiary of FCT, has exercised its rights of pre-emption under the Bye-laws of PGIM Real Estate AsiaRetail Fund Limited1 (“ARF”) to acquire an aggregate of 12.07% of the capital in ARF (the “Acquisition”) for a purchase consideration of approximately S$197.2 million.
The Acquisition is expected to complete in July 2020 and will increase FCT’s interest in ARF to 36.89%2 from 24.82% prior to the Acquisition. The Acquisition is accretive to FCT’s DPU based on the assumption that the Acquisition had been effected at the beginning of FY2019. The pro forma gearing of FCT post Acquisition is 36.2%3 as at 30 September 2019.
Mr Richard Ng, Chief Executive Officer of FCAM said, “This Acquisition further strengthens FCT’s interest in ARF and is a significant step forward in FCT’s growth strategy. The ARF portfolio of suburban retail malls shares similar characteristics to FCT’s malls, which focuses on essential spending and F&B trades as well as their locations in populous residential areas and close proximity to transportation nodes. These characteristics continue to underpin the resilience of the suburban retail sector, notwithstanding the difficult COVID-19 period. This Acquisition will further enhance FCT’s ability to continue to deliver long-term growth and good returns for FCT and its unitholders.”
1 ARF is an open-end private investment vehicle set up as a company incorporated in Bermuda and the largest non-listed retail mall fund in Singapore. ARF owns five retail malls in close proximity to MRT subway stations (Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1) and an office property (Central Plaza) in Singapore, and one retail mall in Malaysia. ARF is managed by PGIM Real Estate, the real estate investment business of PGIM, Inc, the US$1 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU). Prudential Financial, Inc. is not affiliated with Prudential plc, which is headquartered in the United Kingdom.
2 Frasers Property Limited owns the remaining stake of approximately 63.1% in ARF.
3 Computed as gross borrowings over total assets.