The Capital Group Companies Inc. has disposed 4.06 million units of Singapore-listed Retail REIT, Frasers Centrepoint Trust (FCT) (SGX: J69U). The Capital Group Companies Inc. is the parent company of Capital Research and Management Company, a U.S.-based investment management company that manages the American Funds family of mutual funds.

Frasers Centrepoint looks set to acquire the Changi City Point shopping mall in 2014.

The disposal was done on the 11 October and effectively ceases the status of Capital Group Companies as a substantial unit holder in the Frasers Centrepoint Trust. The fund manager continues to hold on to, 37,425,000 units, representing a stake 4.54 per cent in the REIT.

News of the disposal comes on the back of news that Frasers Centrepoint is slated to acquire Changi City Point in 2014. A report by DBS has stated that the mall will be acquired by the REIT for a price of S$400 million and will be funded with a mixture of debt and equity.

Units of FCT are currently trading at S$1.85 on the Singapore Exchange

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.