Frasers Centrepoint Trust buys remaining 63.1% capital in AsiaRetail Fund for $1.06b

FCT also plans to raise $1.3b via an equity fundraising.

Frasers Centrepoint Trust has acquired the remaining 63.1% of total issued share capital of AsiaRetail Fund (ARF) for approximately $1.06b from a subsidiary of Frasers Property Limited, according to an announcement.

Upon completion of the transactions, FCT’s retail properties in its portfolio will increase from seven to 118, and its net lettable area will expand by about 64% to 2.3 million sqft. This will make FCT amonst the largest suburban retail mall owners in Singapore, the REIT said.

FCT’s portfolio size will also increase to approximately $6.65b.

The transaction is a follow-through of our strategy to increase FCT’s stake in ARF, said Richard Ng, Chief Executive Officer of FCAM. 

FCT also announced plans for an equity fundraising to raise approximately $1.3b. It may comprise of a private placement of new FCT units to institutional and other investors, or a preferential offering of new units to existing unitholders on a pro rata basis.

Post the proposed equity Fund Raising, FCT is expected to be among the top ten largest S-REITs by market capitalisation.

FCT acquired an initial 17.1% stake in ARF in April 2019, followed by acquisitions of additional interest that increased FCT’s stake to the current 36.9%.

Prior to the proposed ARF Acquisition, ARF will be divesting Mallco, a wholly-owned subsidiary of ARF which holds Setapak Central, a retail mall in Malaysia, for a sale price of approximately $39.7m, to a wholly-owned subsidiary of the FCAM.

As part of its proactive portfolio management strategy, FCAM is also seeking to divest Bedok Point for a sale price of $108m.