Frasers Centrepoint Trust to raise stake in PGIM Real Estate Fund for S$197.2m, Companies & Markets

Frasers Centrepoint Trust to raise stake in PGIM Real Estate Fund for S$197.2m, Companies & Markets

Tue, Jun 30, 2020 - 11:38 PM FRASERS Centrepoint Trust (FCT) is acquiring an additional 12.07 per cent stake in PGIM Real Estate Asia Retail Fun

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Tue, Jun 30, 2020 – 11:38 PM

FRASERS Centrepoint Trust (FCT) is acquiring an additional 12.07 per cent stake in PGIM Real Estate Asia Retail Fund (ARF) for S$197.2 million, in line with plans to bolster its presence in Singapore’s suburban retail sector. 

FCT now holds a 24.82 per cent interest in ARF, through its wholly-owned subsidiary FCT Holdings (Sigma). The acquisition, expected to be completed in July, will raise FCT’s interest in the fund to 36.89 per cent.

FCT Holdings (Sigma) had exercised its right of pre-emption as a shareholder of ARF to buy the shares from certain shareholders that had indicated their desire to sell. Frasers Property Limited owns the remaining stake of about 63.1 per cent in ARF.

The acquisition is accretive to FCT’s distribution per unit, based on the assumption that the deal had been effected at the beginning of FY2019. But with the acquisition, which will be fully funded by debt, FCT’s pro forma gearing is 36.2 per cent as at Sept 30, 2019.

The net asset value of the stake as at March 31, 2020 amounts to about S$194 million in total. 



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