Frasers Centrepoint Trust to acquire Bedok Point for $127m

FCT’s portfolio is now expected to grow to S$1.66 billion from S$1.53 billion.

According to a release, Frasers Centrepoint Asset Management Ltd., the manager of Frasers Centrepoint Trust, announced that it has entered into a conditional sale and purchase agreement to acquire Bedok Point for a purchase consideration of S$127 million.

Dr Chew Tuan Chiong, Chief Executive Officer of FCAM said, “The proposed acquisition is another testament to our strategy of investing in quality income-producing assets. Bedok Point will be the fifth mall in our Singapore portfolio and this acquisition will reinforce FCT’s position as a pure-play suburban retail mall Singapore REIT. In addition to the benefits from income diversification, a larger market share of the suburban retail mall market and an enlarged tenant base, our unitholders can expect to enjoy higher distribution per unit from this yield-accretive acquisition.”

The Acquisition

The Acquisition was negotiated on an arm’s length basis between FCAM, on behalf of the trustee of FCT, and the vendor, Woodlands Complex Pte Ltd, a wholly-owned subsidiary of Frasers Centrepoint Limited. The purchase consideration of S$127 million is the average of two valuations by independent valuers, Knight Frank Pte Ltd and Jones Lang LaSalle Property Consultants Pte Ltd.

FCAM is in the process of determining an optimal debt and equity financing plan for the Acquisition. Debt financing is expected to be in the form of a drawdown from loan facilities available to FCT while equity financing is expected to be in the form of a private placement. Details of the financing structure will be set out in the Unitholders’ Circular that will be sent to all unitholders in due course.

About Bedok Point

Bedok Point is a four-storey suburban shopping mall located in the town centre of Bedok in Singapore’s eastern region. The mall has a net lettable area of 80,985 square feet and it has a diverse base of quality tenant comprising restaurants, food court and outlets, personal care services, specialty retail units, book store and entertainment
outlets.

The locality is predominantly residential in nature, comprising Housing & Development Board flats and private condominiums as well as educational institutions and public amenities. Bedok Point is well served by public transport facilities such as the nearby Bedok MRT station and the Bedok bus interchange. It also benefits from good
vehicular access to the city area and other parts of Singapore via the East Coast Parkway and the Pan Island Expressway.