Frasers Buying Theatre Complex Next to Northern Singapore Mall for $37M

Just days after entities under its controlling shareholders completed the sale of its remaining wing of a mall in northern Singapore to a REIT under its sponsorship, Frasers Property has acquired a cinema complex next to the shopping centre for S$48 million ($37.3 million).

The developer controlled by Thai liquor baron Charoen Sirivadhanabhakdi is buying the Golden Village Yishun theatre in Singapore’s Yishun area from Hong Kong-listed cinema firm Orange Sky Golden Harvest Entertainment, according to a notice to the HKEX on Monday, with Frasers Centrepoint Trust which took full ownership of the adjacent Northpoint City mall on 26 May, already owning the first floor of the cineplex building.

The deal allows for Orange Sky Golden Harvest, which operates 29 cinemas across Singapore and is a descendant of the studio which produced Bruce Lee’s martial arts movies, to continue leasing the premises from Frasers for a period of 18 months, unless the SGX-listed builder wins approval to redevelop the property before that duration expires.

“Frasers Property has entered into a sale and purchase agreement to acquire the portion of Yishun 10 not currently owned by Frasers Centrepoint Trust,” a Frasers Property spokesperson told Mingtiandi. “With an 18-month lease-back period as part of the agreement, operations at Yishun 10 will continue as usual following the acquisition. The acquisition of this strategic asset is in line with the Group’s active portfolio management approach.”

Consolidating ownership of the theatre complex under entities managed by Frasers Group could give the property player an opportunity to redevelop the theatre building or merge it with the adjacent mall as part of a larger, mixed-use property.

Last Picture Show

Orange Sky Golden Harvest is selling the nearly 41,500 square foot property after reporting a loss attributable to equity holders of HK$243 million ($31 million) for 2024, sliding deeper into the red after suffering a HK$90 million shortfall a year earlier. 

“Taking into consideration the current financial and liquidity position of the Group, the Board is of the view that the Disposal will allow the Group to realise its investment in the Property and generate additional working capital for the Group, and the Leaseback Arrangements shall allow the Group to continue operating it cinema business out of the Property, thereby facilitating a stable business environment for such cinema business,” Orange Sky Golden Harvest said in a statement. 

Frasers Property had yet to make a statement on the acquisition by the time of publication.

The sale price is base on the average of a pair of independent valuations of the property, with Orange Sky Golden Harvest eligible to receive an additional S$2 million in compensation should Frasers secure building permission for redevelopment of the property within 12 months of completion of the acquisition. 

Bloomberg reported late last year citing sources familiar with Orange Sky Golden Harvest’s plans, that the company, which produces, finances and distributes films, was mulling sales of its theatres in Singapore and Taiwan, with such disposals having the potential to raise $400 million for the filmmaker.

Northern Singapore Shifting

Frasers Property, which has reportedly been conducting a strategic review of its business, passed full control of the Northpoint City mall to Frasers Centrepoint Trust through a S$1.17 billion (then $880 million) deal in March. That transaction saw the REIT acquire the south wing of the shopping centre from a trust jointly held by FCT sponsor Frasers Property; the developer’s controlling shareholder, Charoen Sirivadhanabhakdi; and the estate of the Thai billionaire’s late wife. 

The developer and the manager of the listed REIT each announced completion of that deal on 26 May.

Frasers Property developed Northpoint City’s south wing as part of a mixed-use development that integrates the newer mall into the older north wing, which was built in the 1990s, as well as the Yishun bus interchange and the nearby MRT station. A 920-unit condominium, North Park Residences, sits atop the retail podium.