Frasers Centrepoint Trust to acquire South Wing of Northpoint City for S$1.17 billion.

Frasers Centrepoint Trust Acquires South Wing of Northpoint City

S$1.17 billion Deal

Frasers Centrepoint Trust (FCT) has entered into unit purchase agreements with FCL Amber and Bright Bloom respectively, to acquire the South Wing of Northpoint City for S$1.17 billion. This acquisition is done through the purchase of all the units in North Gem Trust (NG Trust), a private trust that holds the interests in the South Wing of Northpoint City.

FCL Amber and Bright Bloom Hold 50% Stake Each

FCL Amber and Bright Bloom each hold 50% of the total number of issued units in NG Trust. FCL Amber is a wholly-owned subsidiary of Frasers Property, while Bright Bloom is a wholly-owned subsidiary of TCC Prosperity, a company owned by Thai billionaire Charoen Sirivadhanabhakdi and the estate of the late Khunying Wanna Sirivadhanabhakdi in equal shares.

FCT to Have Full Ownership

Following the acquisition, FCT will have full ownership of Northpoint City. Richard Ng, chief executive of the manager of FCT, noted, "With full control, FCT will be able to implement holistic asset enhancement initiatives and tenant mix strategies to unlock further value across both wings."

Unlocking Value

The acquisition will consolidate FCT’s position as Singapore’s leading prime suburban retail space owner, enabling the trust to deliver regular and stable distributions to its unitholders.

Funding the Acquisition

The manager intends to finance the acquisition by utilising the net proceeds raised from the issuance of new equity via an equity fund-raising launched on Tuesday. This will include a private placement offering to raise gross proceeds of no less than approximately S$200 million and a preferential offering to raise gross proceeds of about S$200 million. The manager also intends to raise proceeds through debt financing and potentially issuing subordinated perpetual securities of no more than approximately S$200 million.

Subject to Approval

The proposed acquisition is subject to approval by unitholders of FCT at an extraordinary general meeting to be convened by the trust at a later date to be determined by the manager.

Market Reaction

Units of FCT closed 0.5% or S$0.01 higher at S$2.21 on Monday.

Conclusion

The acquisition of the South Wing of Northpoint City by FCT is a significant milestone for the trust, providing an opportunity to unlock further value and solidify its position as a leading prime suburban retail space owner in Singapore.

Frequently Asked Questions

Q: What is the acquisition price of the South Wing of Northpoint City?
A: The acquisition price is S$1.17 billion.

Q: Who holds 50% stake in NG Trust?
A: FCL Amber and Bright Bloom each hold 50% of the total number of issued units in NG Trust.

Q: What is the funding plan for the acquisition?
A: The manager intends to finance the acquisition by utilising the net proceeds raised from the issuance of new equity via an equity fund-raising, debt financing, and potentially issuing subordinated perpetual securities.