Frasers Centrepoint Trust among hardest hit by stamp duty remission expiry

Is the group’s growth story still intact?

Singapore-focused Frasers Centrepoint Trust is one of the hardest hit by the non-extension of REITs’ stamp duty remission for domestic property acquisitions.

In spite of this, OCBC Investment Research noted that FCT will continue to focus on Singapore as the 3% stamp duty charge on future acquisitions remains manageable.

“We believe Singapore will remain its core focus given its strong pipeline of potential acquisition targets here. In our view, interesting developments managed by its sponsor Frasers Centrepoint Limited (FCL) include Waterway Point and Northpoint City. The latter will comprise over 500 retail outlets spanning an estimated 850,000 sq ft if we also take into account the existing Northpoint Shopping Centre (owned by FCT),” stated the report.