Frasers Centrepoint Trust's manager has announced the proposed acquisition of Northpoint City South Wing. The agreed value of the property is $1,133.0 million, which translates into $3,757 per sq ft of net lettable area (NLA).
The net property income (NPI) yield based on the property’s NPI for the financial year ended Sept 30, 2024 and the NPI yield based on the agreed property value is 4.5%.
FCT’s total cost of the acquisition is approximately $1,172.9 million, comprising $375.2 million for the acquisition price, the bank loans owed of approximately $785.0 million, the acquisition fee payable to the manager of approximately $11.3 million, and other acquisition-related fees and expenses of approximately $1.4 million.
FCT has announced the launch of an equity fund raising (EFR) of no less than $400 million, comprising a placement of $200 million at a price of $2.07 to $2.113 per unit, which translates into a discount of 1.8% to 3.8% of adjusted VWAP; and a preferential offer of $200 million with unit prices ranging from $2.03 to $2.07, representing a discount to VWAP of 3.8% to 5.7%.
FCT also plans to raise $200 million in perpetual securities.
Based on the fund raising plan and on an FY2024 pro forma basis, the distribution per unit accretion is 2% and aggregate leverage rises to 39.8% compared to 38.5% as of end-FY2024.
See also: ESR-REIT completes divestment of Lok Yang Road property for $6.8 mil
Northpoint City South Wing is the largest suburban mall in north Singapore. It is linked to Yishun Integrated Transport Hub and has a 100% committed occupancy.
The acquisition will turn FCT into the largest suburban retail landlord with a 10.3% market share.
Units in FCT closed at $2.21 on March 24.
