Frasers Centrepoint Trust to acquire remaining 63.1% in AsiaRetail Fund for S$1.06bn

Frasers Centrepoint Trust to acquire remaining 63.1% in AsiaRetail Fund for S$1.06bn
Tampines 1 Retail mall with 5-storeys Image : Frasers Property

Frasers Centrepoint Asset Management (FCAM), the manager of Frasers Centrepoint Trust (FCT), will acquire the remaining approximately 63.1% of the total issued share capital of AsiaRetail Fund Limited(ARF) for approximately S$1,057.4 million.

Frasers Centrepoint Trust, a retail real estate investment trust listed on the SGX-ST, will be one of Singapore’s largest suburban mall owners with 11 malls, 2.3 million square feet of retail net lettable area and 40% increase in catchment population to 3 million, according to a press release.

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“This transaction is a follow-through of our strategy to increase FCT’s stake in ARF. We acquired the initial 17.1% stake in ARF in April 2019, followed by acquisitions of additional interest that increased FCT’s stake to the current 36.9% when the opportunity presented itself. The acquisition of the remaining 63.1% stake is the final step to carry that strategy to fruition. Upon completion of the Transactions, FCT’s retail properties in its portfolio will increase from seven to 118, and its net lettable area will expand by about 64% to 2.3 million square feet, placing FCT among the largest suburban retail mall owners in Singapore. FCT’s portfolio size will increase to approximately S$6,650 million. Post the proposed Equity Fund Raising (as defined below), FCT is expected to be among the top ten largest S-REITs by market capitalisation,” said Richard Ng, Chief Executive Officer of FCAM.