It’s a wrap: FCT grabs Changi City Point for $305m

The new mall will propel growth by leaps and bounds.

Frasers Centrepoint Trust (FCT) announced on Monday that it has completed the acquisition of Changi City Point (CCP) from a JV Ascendas Frasers Pte Ltd.

According to OCBC, this marks the end of a deal that the FCT first proposed on April 8. The mall was acquired for a purchase consideration of S$305.0m (or S$1,472 psf NLA) on 8 Apr.

“CCP is expected to generate an NPI yield of 5.43% and to contribute positively to DPU, assuming that the transaction is funded via a combination of debt and equity,” the report stated.

Here’s more from OCBC:

FCT has since launched a private placement of 88m new units at an issue price of between S$1.79 and S$1.835 per unit, upon getting unitholders’ approval for the related-party transaction. We note that the issue price was later fixed at the top range of S$1.835, backed by strong demand from new and existing Asian and European institutional investors.

This represents a slight 3.6% discount to the VWAP for the full market day prior to the placement announcement. The total net proceeds of S$158.7m raised from the placement exercise was used to part finance the acquisition, while the remaining balance of the purchase price was funded by borrowings and internal resources.

Based on our projections, the CCP deal is expected to add an annualized 0.12 S cents to FCT’s DPU. FCT’s gearing ratio, on the other hand, is likely to increase from 27.7% as at 31 Mar to 30.3%.