FCT divests 10 strata lots at Yishun 10 to Frasers Property for $34.5 mil
According to FCT, the divestment is in line with the manager’s proactive portfolio management approach to optimize profile structure and its returns. The supervisor claims it intends to utilize the net profits of $33.8 million to settle “certain financial obligation”, which will certainly lower FCT’s aggregate leverage. The net total accounts for many others divestment associated costs of about $0.2 million and transfer of renters’ down payment of around $0.5 million.
The divestment is exempt to FCT’s unitholders’ confirmation as it makes up 1.17% of the net tangible assets (NTA) and NAV of FCT as at Sept 30, 2024, and less than the requisite 5% of FCT’s newest audited NTA and NAV under Rule 906( 1) of the listing manual and paragraph 5.2 (b) of the property funds appendix.
Frasers Property, via its wholly-owned subsidiary, Lion (Singapore), participated in a sale and purchase arrangement (SPA) with FCT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, on Aug 25.
According to Frasers Property, the proceeding was made to “optimize capital efficiency with active profile management initiatives”. “The suggested purchase will potentially permit the group to create additional worth from the longer-term redevelopment possibility of the asset,” it includes.
The properties, positioned next to Northpoint City, are hosted under branch strata certifications of title. The lots have a leasehold term of 99 years commencing 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.
Canberra Crescent Residences Kheng Leong and Low Keng Huat
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 earnings 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 guidebook.
The sale consideration factored in the most recent valuations of the real estates 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 assessment of $34 million and Savills’ valuation of $35 million.
Frasers Property already possesses the only various other property at Yishun 10, that is the 1,477-seat Golden Village cineplex in Yishun. The company acquired it from Golden Village Multiplex Pte Ltd on Aug 8 for $48 million.
Upon the completion of the most up to date proposed deal, 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 development at 51 Yishun Central 1 (also called Yishun 10) to Frasers Property Limited for $34.5 million.
That said, the divestment is deemed to be an interested person transaction and interested party transaction given that Frasers Property is the REIT’s sponsor. Frasers Property, with Frasers Property Retail Trust Holdings Pte. Ltd. and FCT’s executive, has a 37.94% claim in FCT. FCT’s supervisor is also a wholly-owned subsidiary of Frasers Property Limited, in which the latter is considered as a “managing shareholder” of the supervisor.
