FCT divests 10 strata lots at Yishun 10 to Frasers Property for $34.5 mil
Frasers Property, via its wholly-owned subsidiary, Lion (Singapore), participated in a sale and purchase contract (SPA) with FCT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, on Aug 25.
Frasers Property currently possesses 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 Village Multiplex Pte Ltd on Aug 8 for $48 million.
The divestment is exempt to FCT’s unitholders’ authorization 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 requisite 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.
Upon the completion of the current recommended purchase, Frasers Property will conclude full ownership of Yishun 10 and business at Yishun 10 will proceed as usual.
Frasers Centrepoint Trust (FCT) has unloaded 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.
That claimed, the divestment is regarded to be an interested person transaction and interested party transaction considered that Frasers Property is the REIT’s sponsor. Frasers Property, via Frasers Property Retail Trust Holdings Pte. Ltd. and FCT’s executive, owns a 37.94% claim in FCT. FCT’s executive is also a wholly-owned subsidiary of Frasers Property Limited, wherein the latter is regarded as a “controlling shareholder” of the manager.
The sale consideration factored in the most recent valuations of the real estates as at May 31. The properties were valued by Jones Lang LaSalle Property Consultants Pte Ltd (JLL) and Savills Valuation and Professional Services (S) Pte Ltd. The concurred property value is the average of JLL’s appraisal of $34 million and Savills’ valuation of $35 million.
The properties, situated alongside Northpoint City, are hosted under branch strata certificates of title. The lots have a leasehold term of 99 years beginning from April 1, 1990. They were gotten in 2016 and have a total gross flooring area of 966 sqm and complete net lettable area (NLA) of 961 sqm.
According to Frasers Property, the deal was made to “optimise capital productivity with active profile management initiatives”. “The recommended deal will possibly enable the group to produce additional worth from the longer-term redevelopment potential of the asset,” it adds.
According to FCT, the divestment is in line with the manager’s proactive portfolio management approach to optimize profile composition and its yields. The manager says it intends to use the net proceeds of $33.8 million to settle “specific financial debt”, which will certainly lower FCT’s aggregate leverage. The net total accounts for many others divestment related expenses of about $0.2 million and transfer of occupants’ security deposits of roughly $0.5 million.
Considered that the net asset value (NAV) of the real properties 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.
