FCT divests 10 strata lots at Yishun 10 to Frasers Property for $34.5 mil
According to FCT, the divestment remains in line with the supervisor’s proactive portfolio management strategy to optimise profile composition and its revenues. The manager says it means to make use of the net proceeds of $33.8 million to repay “certain financial debt”, which will certainly minimize FCT’s aggregate leverage. The net sum accounts for other divestment related costs of around $0.2 million and transfer of occupants’ security deposits of roughly $0.5 million.
The sale consideration factored in the current valuations of the properties as at May 31. The properties were worth by Jones Lang LaSalle Property Consultants Pte Ltd (JLL) and Savills Valuation and Professional Services (S) Pte Ltd. The concurred property worth is the standard of JLL’s evaluation of $34 million and Savills’ assessment of $35 million.
According to Frasers Property, the deal was made to “optimize capital productivity with active profile management initiatives”. “The suggested deal will possibly permit the group to create additional worth from the longer-term redevelopment capacity of the asset,” it adds.
The divestment is exempt to FCT’s unitholders’ approval as it makes up 1.17% of the net tangible assets (NTA) and NAV of FCT as at Sept 30, 2024, and lower than the required 5% of FCT’s latest audited NTA and NAV under Rule 906( 1) of the advertisement manual and paragraph 5.2 (b) of the property funds appendix.
The properties, situated beside Northpoint City, are operated under subsidiary strata certifications of title. The lots have a leasehold term of 99 years starting from April 1, 1990. They were obtained in 2016 and have a total gross floor surface area of 966 sqm and overall net lettable area (NLA) of 961 sqm.
Frasers Property currently owns the just various other property at Yishun 10, that is the 1,477-seat Golden Village cineplex in Yishun. The business obtained it from Golden Town Multiplex Pte Ltd on Aug 8 for $48 million.
Frasers Property, via its wholly-owned subsidiary, Lion (Singapore), participated in a sale and acquisition contract (SPA) with FCT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, on Aug 25.
That stated, the divestiture is deemed to be an interested person transaction and interested party transaction considered that Frasers Property is the REIT’s sponsor. Frasers Property, with Frasers Property Retail Trust Holdings Pte. Ltd. and FCT’s manager, has a 37.94% stake in FCT. FCT’s manager is in addition a wholly-owned subsidiary of Frasers Property Limited, wherein the latter is considered a “managing shareholder” of the supervisor.
Upon the completion of the latest recommended transaction, Frasers Property will assume full possession of Yishun 10 and operations at Yishun 10 will proceed customarily.
Considered that the net asset value (NAV) of the estates of $33.5 million is 0.8% to FCT’s NAV of $4.15 billion and the net revenues attributable to the properties of $0.2 million is 0.2% of FCT’s net revenue of $97 million, the divestment is classified as a “non-discloseable transaction” under Rule 1008 of the listing handbook.
Frasers Centrepoint Trust (FCT) has divested 10 strata lots in a strata-titled retail property development at 51 Yishun Central 1 (also known as Yishun 10) to Frasers Property Limited for $34.5 million.
