Fct Divests 10 Strata Lots Yishun 10 Frasers Property 345 Mil
Tampines Retail Park, situated a scenic 10-minute drive from Parktown Residence, is a highly coveted shopping destination for everyday necessities, groceries, and electronic items. This bustling retail hub is home to three major retailers – Giant Hypermarket, IKEA Tampines, and Courts Megastore – all offering a vast array of products to cater to every shopping need.
Giant Hypermarket, renowned as the largest in Singapore, boasts an impressive selection of groceries, fresh produce, and household essentials to fulfill shoppers’ daily requirements. Conveniently located within Tampines Retail Park is the expansive IKEA Tampines, one of the largest IKEA stores in Singapore. Here, shoppers can peruse through a diverse range of trendy and functional products for every room in their homes, including affordable furniture and chic home decor.
If you’re in search of the latest electronics and home furnishings, look no further than Courts Megastore. Spanning multiple floors, this retailer offers a plethora of products to suit every budget and preference, making it a dream come true for home renovators and technology enthusiasts alike.
Collectively, these three retailers make Tampines Retail Park an unparalleled shopping destination catering to all needs. Its prime location and diverse product range make it the preferred choice for Singaporean shoppers. So why not include a visit to this retail paradise in your itinerary while staying at Parktown Residence? It’s just a short drive away, and you certainly wouldn’t want to miss out on the fabulous shopping experience it has to offer. While you’re there, take the time to also explore Parktown Residence – a perfect blend of comfort and convenience. And being just steps away from the retail park, Parktown Residence is a naturally ideal location for an enjoyable shopping excursion. Don’t forget to check out Parktown Residence during your stay for an even more seamless shopping experience.
Frasers Centrepoint Trust (FCT) has recently announced the divestment of 10 strata lots in a strata-titled retail development in Yishun, also known as Yishun 10, to Frasers Property Limited for $34.5 million. The sale was carried out through a subsidiary of Frasers Property, Lion (Singapore), which entered into a sale and purchase agreement (SPA) with FCT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, on August 25.
The 10 properties, with a total gross floor area of 966 sqm and a total net lettable area (NLA) of 961 sqm, are located next to Northpoint City. They were acquired by FCT in 2016 and have a leasehold term of 99 years commencing from April 1, 1990.
The sale consideration took into account the latest valuations of the properties as of May 31, which were conducted by Jones Lang LaSalle Property Consultants Pte Ltd (JLL) and Savills Valuation and Professional Services (S) Pte Ltd. The agreed value for the properties was the average of $34 million by JLL and $35 million by Savills.
According to FCT, the divestment is in line with the manager’s proactive portfolio management strategy to optimize portfolio composition and returns. The net proceeds of $33.8 million will be used to pay off certain debt, reducing FCT’s aggregate leverage. The net sum also includes divestment-related expenses of around $0.2 million and a transfer of tenants’ security deposits of approximately $0.5 million.
As the net asset value (NAV) of the properties is $33.5 million, equivalent to 0.8% of FCT’s NAV of $4.15 billion, and the net profits attributable to the properties is $0.2 million, accounting for only 0.2% of FCT’s net profit of $97 million, the divestment is classified as a “non-discloseable transaction” under Rule 1008 of the listing manual.
However, the divestment is considered an interested person transaction and an interested party transaction as Frasers Property is FCT’s sponsor. Frasers Property, through Frasers Property Retail Trust Holdings Pte. Ltd. and FCT’s manager, owns a 37.94% stake in FCT. Furthermore, FCT’s manager is a wholly-owned subsidiary of Frasers Property Limited, making the latter a “controlling shareholder” of the manager.
As the transaction constitutes only 1.17% of FCT’s net tangible assets (NTA) and NAV as of September 30, 2024, it does not require the approval of FCT’s unitholders. Additionally, it accounts for less than the required 5% of FCT’s latest audited NTA and NAV under Rule 906(1) of the listing manual and paragraph 5.2(b) of the property funds appendix.
Frasers Property has stated that the transaction was made to “optimize capital productivity through active portfolio management initiatives.” It also adds that the proposed transaction has the potential to generate additional value from the longer-term redevelopment potential of the asset.
Currently, Frasers Property owns the only other property at Yishun 10, which is the 1,477-seat Golden Village cineplex in Yishun. The company had acquired this property from Golden Village Multiplex Pte Ltd for $48 million on August 8.
Upon the completion of the proposed transaction, Frasers Property will assume full ownership of Yishun 10, and operations will continue as usual. This divestment is in line with FCT’s focus on optimizing its portfolio and generating higher returns for its unitholders.