Fct Divests 10 Strata Lots Yishun 10 Frasers Property 345 Mil
The Divestment of Strata Lots at Yishun 10 by Frasers Centrepoint Trust (FCT)
Frasers Centrepoint Trust (FCT) has completed the sale of 10 strata lots within the strata-titled retail development known as Yishun 10 located at 51 Yishun Central 1 for a total consideration of $34.5 million. The buyer, Frasers Property Limited, entered into a Sale and Purchase Agreement with FCT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, on August 25.
The properties, which are located next to Northpoint City, were acquired in 2016 and are held under subsidiary strata certificates of title with a leasehold term of 99 years commencing from April 1, 1990. They have a total gross floor area of 966 sqm and a total net lettable area (NLA) of 961 sqm.
The sale consideration took into account the latest valuations of the properties as at May 31, which were carried out by Jones Lang LaSalle Property Consultants Pte Ltd (JLL) and Savills Valuation and Professional Services (S) Pte Ltd. The agreed upon property value is the average of JLL’s valuation of $34 million and Savills’ valuation of $35 million.
The divestment is in line with FCT’s proactive portfolio management strategy to optimize portfolio composition and its returns. The proceeds of $33.8 million will be used to repay certain debt, which will reduce FCT’s aggregate leverage. After accounting for divestment-related expenses of approximately $0.2 million and the transfer of tenants’ security deposits of approximately $0.5 million, the net proceeds amount to $33.8 million.
As the net asset value (NAV) of the properties is $33.5 million, which accounts for 0.8% of FCT’s NAV of $4.15 billion, and the net profits attributable to the properties is $0.2 million, which accounts for 0.2% of FCT’s net profit of $97 million, the divestment is considered a “non-disclosable transaction” under Rule 1008 of the listing manual. However, it is still classified as an interested person transaction and an interested party transaction given that Frasers Property is the sponsor of FCT. Frasers Property, through Frasers Property Retail Trust Holdings Pte. Ltd., and FCT’s manager, owns a 37.94% stake in FCT. FCT’s manager is also a wholly-owned subsidiary of Frasers Property Limited, making the latter a “controlling shareholder” of the manager.
Since the divestment makes up only 1.17% of the net tangible assets (NTA) and NAV of FCT as at September 30, 2024, it does not require unitholders’ approval under Rule 906(1) of the listing manual and paragraph 5.2 (b) of the property funds appendix.
Frasers Property states that the transaction is part of its efforts to “optimize capital productivity through active portfolio management initiatives”. It also believes that the divestment will allow for the potential generation of additional value from the longer-term redevelopment potential of the asset.
Frasers Property already owns the only other property at Yishun 10, which is the 1,477-seat Golden Village cineplex in Yishun. The company acquired it from Golden Village Multiplex Pte Ltd on August 8 for $48 million.
After the completion of this latest transaction, Frasers Property will assume full ownership of Yishun 10, and operations will continue as usual. This story was first published on .
Tampines is an ideal location for families with older children or even adults who are looking to continue their education. This vibrant neighborhood provides convenient access to numerous tertiary institutions that offer a diverse selection of diploma and degree programs. Additionally, with the upcoming Aurelle of Tampines EC, residents will have even more educational opportunities right at their doorstep.
