Frasers Centrepoint Trust Buying Out Northern Singapore Mall for $880M

Frasers Centrepoint Trust has agreed to acquire the remaining half of a northern Singapore mall complex that it doesn’t already own for S$1.17 billion ($880 million), the SGX-listed REIT announced Tuesday.

The seller of Northpoint City’s south wing is 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 consideration for the asset in the Yishun area includes the S$375.2 million acquisition price, S$785 million in loans owed by the seller and fees related to the deal, FCT’s manager said in a release.

Upon consolidating ownership of the mall’s north and south wings, FCT’s market share in private suburban shopping centres by net lettable area will increase from 9.1 percent to 10.3 percent, according to the manager.

“With full control, FCT will be able to implement holistic asset enhancement initiatives and tenant mix strategies to unlock further value across both wings,” said Richard Ng, CEO of the manager. “The acquisition consolidates FCT’s position as Singapore’s leading prime suburban retail space owner and enables FCT to deliver regular and stable distributions to its unitholders.”

Ruling the Suburbs

With a combined NLA of over 531,000 square feet (49,332 square metres), Northpoint City is the largest suburban mall in northern Singapore and the fifth-largest suburban mall islandwide, according to FCT.

Of the 10 largest malls by NLA outside the central region, the REIT owns or jointly owns four, including 50 percent interests in the NEX shopping centre in Serangoon and the Waterway Point mall in Punggol.

Frasers 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.

FCT’s manager said unitholders would benefit from the fully occupied mall’s strong tenant base, healthy foot traffic and limited competing supply in the catchment area. To help fund the acquisition, the REIT will raise S$400 million from the issuance of new units, according to a filing with the Singapore Exchange.

Tycoon Rings the Register

The trust disposing of Northpoint City’s south wing is a 50:50 vehicle of Frasers Property and an entity equally held by Charoen and the estate of Khunying Wanna Sirivadhanabhakdi.

Frasers Property’s largest shareholder is the Charoen-controlled private firm TCC Assets, which secured an 86.89 percent stake in the SGX-listed developer following last year’s share swap deal with ThaiBev, the Bangkok-headquartered drinks company founded by Charoen.

The 80-year-old patriarch stepped down from his role as Frasers Property chairman last month and received the honorary title of chairman emeritus.