Frasers Property and FCT raise stakes in PGIM Asia retail property fund for $635 mil

Frasers Property and FCT raise stakes in PGIM Asia retail property fund for $635 mil

PC Lee
21/03/19, 11:30 am

SINGAPORE (Mar 25): Frasers Property Limited and Frasers Centrepoint Trust (FCT) are raising their stakes in PGIM Real Estate Asia Retail Fund for $635 mil in total.

Frasers Property, which is also the sponsor of FCT, says the investments are line with the group's strategy to grow recurring income sources in one of the group’s key asset classes.

The assets owned by PGIM Real Estate Asia Retail Fund are primarily suburban retail properties in Singapore.

“Suburban retail is an asset class that has demonstrated resilience across property cycles. The investments offer an opportunity for the group to grow its presence in the retail sector in Singapore through exposure to the company’s portfolio of quality retail properties,” says Frasers Property in a morning filing.

Frasers Property, which currently owns a 17.8% stake in the fund, is acquiring a further 29.99% stake for about $601.5 million while subsidiary Frasers Property Investments (Bermuda) is acquiring 158,145 shares in the fund. The acquisitions raise Frasers Property’s total stake in the fund to around 47.82%.

In a separate filing, the trustee-manager of FCT says it is increasing its stake in the fund to 18.8% from 17.13% through its wholly own subsidiary FCT Holdings (Sigma). FCT's subsidiary will acquire 8,804 shares which represent a 1.67% stake in the company for around $33.5 million.

FPL intends to finance the latest acquisition via internal funds or external borrowings while FCT trustee-manager says it intends to finance the acquisition through a combination of debt and equity financing.

As at 11.24am, shares in FPL are trading 1 cent higher at $1.78 while units in FCT are up 2 cents at $2.28.

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