SINGAPORE: Frasers Centrepoint Asset Management Ltd. as the manager of Frasers Centrepoint Trust (FCT), announced 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 Limited (ARF) to acquire an aggregate of 12.07% of the capital in ARF 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% 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 AsiaRetail Fund and is a significant step forward in FCT’s growth strategy. The AsiaRetail Fund 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.”