Frasers Centrepoint Trust buys one-third stake in Singapore Mall for US$319m

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Frasers Centrepoint Trust (FCT) has acquired a one-third interest in the Waterway Point mall in Singapore from another Frasers Property subsidiary for S$440.6m (US$319.9m).

Waterway Point is a 34,485 sq.m. suburban shopping centre located next to the Punggol light rail and train station, Frasers Property announced.

The property is 98.1% occupied and has a wide range of tenants including FairPrice Finest, Shaw Theatres, Uniqlo and H&M.

Waterway Point (image: Frasers Property)

The shopping centre had an annual footfall of 29.1m in 2018, up 3.9% on the year prior, while tenant sales also rose 10% to S$379.1m last year.

Frasers Property said the mall, valued at S$1.3bn, was located in a favourable catchment area supported by strong population growth.

The deal will see FCT acquire a third of Frasers-owned Sapphire Star Trust (SST), which owns the mall.

It will also acquire a third interest in FC Retail Trustee, the trustee-manager of SST, as well as taking on a S$191m loan.

FCT will fund the deal through a private placement of new units and a non-renounceable preferential offering of new units to existing unitholders.

FCT is listed on the Singapore stock exchange and owns a S$2.77bn portfolio of suburban shopping centres throughout Singapore.

It owns the Causeway Point, Northpoint City North Wing, Anchorpoint, YewTee Point, Bedok
Point and Changi City Point malls.

FCT holds an 18.8% stake in PGIM Real Estate AsiaRetail Fund, a non-listed retail fund that owns six malls and an office in Singapore and four shopping centres in Malaysia, as well as a 31.15% stake in Malaysia-listed retail REIT, Hektar Real Estate Investment.