The director of Frasers Centrepoint Trust (FCT) is likely to get the residual 63.1% stake in PGIM’s Asia Retail Fund (ARF), presently held by Frasers Property (FPL) for $1.06 billion. ) FCT’s supervisor is also proposing to divest Bedok Point for an account of $108 million.
The Ryse Residences showroom will have a commercial and residential component which is integrated with the future bus interchange.
Upon the conclusion of the trades, FCT’s retail properties in its portfolio increases from seven to 11 malls, which makes it one of the biggest suburban retail mall owners in Singapore. The total net area is going to be enlarged by roughly 64% to 2.3 million sq ft. The catchment population increases from two million to approximately 3 million, and is estimated to rise to 3.15 million in five years’ period.
More than half of those retail operators at ARF Are Crucial services, based on Richard Ng, CEO of Frasers Centrepoint Asset Management. Along with the first seven malls, FCT will set a solid presence from the south-west and eastern areas of Singapore, he adds.
To finance the purchase, the supervisor has declared a $1.39-billion positioning and preferential equity fund raising. The purchase fee payable to the director for the projected ARF acquisition is $19.3 million. Following the projected equity fund raising, FCT will be among the best 10 S-REITs in Singapore by market capitalisation.
Ng says the two portfolios are complementary, together with crucial shopping malls in both portfolios located alongside key transportation nodes like MRT stations and bus interchanges.
Besides fundamental services, malls also function as a social hub, because public services are also contained.” For Example, he cites Northpoint City which homes Yishun Public Library and Nee Soon Central Community club.
FCT will continue to pursue omni-channel retail opportunities, like incorporating both loyalty plans from ARF and FCT, which have a joint loyalty foundation of 8,000 shoppers in Singapore.
For both portfolios, mall shopper visitors as at July have recovered to between 60% and 70% of the year’s level.