On Sept 3, the manager of Frasers Centrepoint Trust announced its plans to acquire the 63.1% in PGIM Asia Retail Fund (ARF) it does not own, currently held by Frasers Property (FPL). FCT's manager also announced the proposed sale of Bedok Point. Prior to the acquisition, ARF will divest a Malaysian mall.
Upon completion of the transactions, FCT’s retail properties in its portfolio will increase from seven to 11, and its net lettable area will expand by about 64% to 2.3 million square feet, placing FCT among the largest suburban retail mall owners in Singapore. FCT’s portfolio size will increase to approximately $6,650 million. Post the proposed Equity Fund Raising, FCT is expected to be among the top ten largest S-REITs by market capitalisation, the manager announced.
ARF’s portfolio of suburban retail malls shares similar characteristics to FCT’s malls, which includes the focus on Essential Services, being located in populous residential areas and above or near transportation nodes. ARF’s Singapore portfolio includes five retail malls: Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1 and one office property Central Plaza.