Frasers Centrepoint Trust Acquire Northpoint City South Wing 117 Bil
Frasers Centrepoint Trust’s manager has recently announced the proposed acquisition of Northpoint City South Wing for a total value of $1,133.0 million. This translates to a cost of $3,757 per sq ft of net lettable area (NLA).
Based on the property’s net property income (NPI) for the financial year ended on Sept 30, 2024, and the agreed value, the NPI yield is estimated to be 4.5%. The total cost of the acquisition for FCT is approximately $1,172.9 million. This includes the acquisition price of $375.2 million, bank loans of approximately $785 million, an acquisition fee of $11.3 million payable to the manager, and other related fees and expenses of around $1.4 million.
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After the announcement, FCT also revealed its plans to raise funds through an equity fundraising (EFR) of no less than $400 million. This includes a placement of $200 million with a unit price range of $2.07 to $2.113, which is 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, representing a discount of 3.8% to 5.7% to VWAP.
In addition, FCT is also planning to raise $200 million in perpetual securities. Based on the fundraising plan and a pro forma basis for the financial year 2024, the distribution per unit is expected to increase by 2%, and the aggregate leverage will rise to 39.8%, compared to 38.5% as of the end of FY2024.
Northpoint City South Wing, the largest suburban mall in north Singapore, is linked to Yishun Integrated Transport Hub and has a 100% committed occupancy. This acquisition will make FCT the largest suburban retail landlord with a 10.3% market share. As of March 24, units in FCT closed at $2.21.
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