The manager of Frasers Centrepoint Trust (FCT) says that the divestment of 10 strata lots at Yishun 10 to Frasers Property has been completed, resulting in a gain of $34.5 million.
Frasers Property, through its wholly-owned subsidiary, Lion (Singapore), entered into a sale and purchase agreement (SPA) with FCT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, on Aug 25.
The properties, located next to Northpoint City, are held under subsidiary strata certificates of title. The lots have a leasehold term of 99 years commencing from April 1, 1990. They were acquired in 2016 and have a total gross floor area of 966 sqm and total net lettable area (NLA) of 961 sqm.
The manager of FCT says that it intends to use the proceeds from the divestment to pare down debt, which will reduce FCT’s aggregate leverage and strengthen its financial position.
Units in FCT closed flat at $2.34 on Sept 23.
