Singapore listed Frasers Centrepoint Trust (FCT), a retail real estate investment trust (REIT), said it will acquire additional 12% interest in AsiaRetail Fund Limited (ARF), managed by PGIM Real Estate, for S$197.2 million.
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.
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.
“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 characteristicscontinue 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,” said Richard Ng, Chief Executive Officer of FCAM.
Listed on the Main Board of the Singapore Exchange Securities Trading Limited since 5 July 2006, Frasers Centrepoint Trust is managed by Frasers Centrepoint Asset Management Ltd., a real estate management company and a subsidiary of Frasers Property Limited.
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).