Frasers Property arm to buy stake in PGIM Real Estate AsiaRetail Fund for $356.4m

The 17.83% stake is equivalent to 94,013 shares.

Frasers Property has entered a conditional sale and purchase agreement to acquire a 17.83% stake in open-end private investment vehicles PGIM Real Estate AsiaRetail Fund for $356.4m, an announcement revealed.

According to the firm, Frasers Property’s subsidiary Frasers Property Crystal will purchase some 94,013 shares from a shareholder of PGIM Real Estate AsiaRetail Fund.

Also read: Frasers Property arm buys majority stakes in Vietnamese real estate firm

PGIM Real Estate AsiaRetail Fund is reportedly the largest non-listed retail mall fund in Singapore, which owns and manages six retail malls comprising of Tiong Bahru Plaza, White Sands, Liang Court, Hougang Mall. Century Square and Tampines 1. Additionally, it owns office property Central Plaza in Singapore, and four retail malls in Malaysia. The firm is managed by Prudential Financial Inc.’s global investment management business PGIM Real Estate.

The acquisition is said to be in line with Frasers Property’s strategy to grow recurring income sources in one of its key asset classes, which are primarily suburban retail properties in Singapore.

“Suburban retail is an asset class that has demonstrated resilience across property cycles,” the firm explained in a statement. “The acquisition offers an opportunity for the Group to grow its presence in the retail sector in Singapore through exposure to PGIM Real Estate’s portfolio of quality retail properties.”

Also read: Frasers Property Q1 profits surged 76.1% to $145.59m

Following the acquisition, the pro forma financial effects for Frasers Property’s could see profit after tax and non-controlling interests rise up to $763m from $759m.

Frasers Property said it intends to finance the acquisition via internal funds or external borrowings, or a combination of both.