Frasers Centrepoint Trust (FCT), a leading mainboard-listed real estate investment trust (REIT), plans to purchase two shopping malls in Singapore for $290.2 million.
It will buy Yew Tee Point and Northpoint 2 from Yishun Development, a wholly-owned subsidiary of its parent company, Neave and Fraser.
FCT has proposed an equity fund raising of up to 152 million new units to partially finance its acquisition. The remaining balance will be paid through its borrowings. The timing and structure of this proposed equity fund raising is yet to be decided.
It will pay $125.65 million for Yew Tee Point and $164.55 million for Northpoint 2.
FCT is optimistic about these proposed acquisitions, expecting a growth of $1.5 billion in its portfolio value.
It added that the addition of the two malls would also improve its already strong position in the resilient retail property market in suburban areas.