TCC unit subscribes to 50% stake in Frasers Northpoint City

This allows Frasers to gain $50m over the asset’s last audited book value.

Frasers Property Limited has announced that TCC Prosperity Limited’s (TCC) wholly-owned subsidiary Bright Bloom Capital Limited has subscribed for 50% of the total issued units of North Gem Trust, which owns Northpoint City.

The transaction values Northpoint City (South Wing) at $1.1b. It also allows Frasers to gain $50m over the asset’s last audited book value and strengthen its financial position by reducing its net gearing.

Frasers Property Retail CEO Low Chee Wash adds that the transaction is timely as it maintains the group’s discipline in optimising capital productivity with Northpoint City as a strategic component of the group’s $8.6b retail assets under management in Singapore.

As part of the agreement, Frasers Property and Bright Bloom Capital Limited have pre-emptive rights on each other’s stake in Northpoint City.

Bright Bloom Capital Limited is a wholly-owned subsidiary of TCC, which is part of the TCC Group controlled by Mr. Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi, who are also directors and controlling shareholders of Frasers Property.

The transaction follows the equity injection by a long-term strategic investor in Frasers Tower in FY2019, which resulted in both partners each holding a 50% stake in the property that continues to be managed by Frasers Property.