Frasers Centrepoint Trust to raise $421.7m via equity fund

The proceeds will be partially used to fund the acquisition of Sapphire Start Trust units.

Frasers Centrepoint Trust (FCT) is aiming to raise $421.7m through equity fundraising which will be used to finance part of the total expenses for the proposed acquisition of about 33% of issued units in Sapphire Star Trust (SST).

The units will be acquired from Frasers Property’s indirect subsidiary, FCL Emerald, upon entering a conditional unit sale and purchase agreement with FCT. More than half or 58.2% or $245.3m of the gross proceeds are for the said acquisition.

Meanwhile, the remaining $176.4m of the gross proceeds will be used to pare down bridging loans taken up by FCT in connection with the acquisition by FCT Holdings (Sigma) Pte. Ltd. of a stake in PGIM Real Estate AsiaRetail Fund Limited.

The fundraising will be through a private placement of about 135.66 million new units at an issue price of between $2.30 and $2.382 apiece to raise $369.6m. FCT will also conduct a preferential offering of up to 48.3 million new units priced between $2.27 and $2.352 apiece to bag $65.4m.