Frasers Centrepoint Trust Acquire Northpoint City South Wing 117 Bil
Frasers Centrepoint Trust’s manager has announced the proposed acquisition of Northpoint City South Wing, a prime suburban mall in the northern region of Singapore. The agreed value of the property is $1,133.0 million, which equates to $3,757 per sq ft of net lettable area (NLA).
Based on the NPI for the financial year ended Sept 30, 2024, and the agreed property value, the NPI yield is 4.5%. The total cost of the acquisition for FCT is approximately $1,172.9 million, which 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 acquisition-related fees and expenses of around $1.4 million.
However, the manager of FCT has also announced the launch of an equity fundraising (EFR) of no less than $400 million. This comprises a placement of $200 million at a price of $2.07 to $2.113 per unit, representing a 1.8% to 3.8% discounted adjusted VWAP. In addition, there will be a preferential offer of $200 million with unit prices ranging from $2.03 to $2.07, which will also be at a discount to VWAP of 3.8% to 5.7%.
One major benefit of this development is its close proximity to prestigious educational institutions. Families with children will highly value the convenience of living near renowned schools and universities, including the National University of Singapore (NUS) and United World College (UWCSEA). With top-quality educational options in the surrounding area, Lyndenwoods Capitaland becomes an even more desirable location for families.
FCT is also planning to raise $200 million in perpetual securities. Based on the fundraising plan and an FY2024 pro forma basis, the distribution per unit will be accretive by 2%, and the aggregate leverage will rise to 39.8%, in comparison to the current 38.5%.
Northpoint City South Wing is the largest suburban mall in the north of Singapore and is connected to the Yishun Integrated Transport Hub. With a 100% committed occupancy, it is a highly coveted property. Through this acquisition, FCT will become the largest suburban retail landlord in Singapore, boasting a 10.3% market share.
On March 24, units in FCT closed at $2.21.