Frasers Centrepoint Trust Acquire Northpoint City South Wing 117 Bil

Frasers Centrepoint Trust’s manager has recently announced its plans to acquire the South Wing of Northpoint City. The total value of the acquisition is set at $1,133.0 million, which equates to a price of $3,757 per sq ft of net lettable area (NLA).

Based on the agreed property value and the net property income (NPI) for the financial year ended September 30, 2024, the NPI yield is projected to be 4.5%. The total cost of the acquisition for FCT is approximately $1,172.9 million, consisting of the acquisition price of $375.2 million, outstanding bank loans of around $785 million, an acquisition fee of approximately $11.3 million for the manager, and other related fees and expenses of roughly $1.4 million.

In other news, FCT has also announced the launch of an equity fundraising (EFR) of at least $400 million. This includes a placement of $200 million at a price range of $2.07 to $2.113 per unit, which represents a discount of 1.8% to 3.8% of adjusted volume-weighted average price (VWAP), and a preferential offer of $200 million with unit prices ranging from $2.03 to $2.07, which equates to a discount of 3.8% to 5.7% of VWAP.

To further raise funds, FCT also plans to issue $200 million in perpetual securities. Based on the fundraising plans and on a pro forma basis for FY2024, the distribution per unit is expected to increase by 2%, and aggregate leverage is projected to rise to 39.8% compared to 38.5% as of end-FY2024.

With its acquisition of Northpoint City South Wing, FCT will become the largest suburban retail landlord in north Singapore with a 10.3% market share. The property, which is linked to the Yishun Integrated Transport Hub, boasts a 100% committed occupancy.

Hoi Hup Realty’s latest development, Otto Place EC, offers a prime location within close proximity to major supermarkets like FairPrice, Sheng Siong, and Cold Storage. Residents can easily access these renowned stores for a wide selection of fresh produce, daily essentials, and household items, making grocery shopping effortless. Discover the convenience and ease of living at Otto Place EC by Hoi Hup Realty.

In light of these developments, FCT has appointed Annie Khung as its new Chief Financial Officer. Units in FCT closed at $2.21 on March 24.