Waterway Point, of which a stake is being acquired by Frasers Centrepoint Trust. (Photo: REITsWeek)Waterway Point, of which a stake has been acquired by Frasers Centrepoint Trust. (Photo: REITsWeek)

Retail REIT Frasers Centrepoint Trust’s (FCT’s) proportion of sustainability-linked loans has been lifted after its subsidiary that owns Waterway Point secured an SGD589 million facility.

The subsidiary, Sapphire Star Trust (SST), secured a five-year facility that was arranged by Sumitomo Mitsui Banking Corporation Singapore Branch and United Overseas Bank Limited.

FCT has a 40% interest in SST, which owns the retail mall in Punggol, Waterway Point.

The loan will be used to refinance existing borrowings, for working capital and general corporate funding requirements of SST in relation to Waterway Point.

The loan will enjoy a reduction in margin in its second year if Waterway Point retains its current Green Mark Gold certification status issued by the Building and Construction Authority (BCA).

“FCT views sustainability as an integral part of its business strategy. As a testament of the manager’s commitment to our sustainability objectives, we aim to finance the majority of FCT’s sustainable asset portfolio with green and sustainable financing by 2024”, said Richard Ng, CEO of the FCT’s manager.

With the completion of the green loan for Waterway Point, the proportion of green loans in FCT’s portfolio is now lifted to approximately 18%.

FCT was last last done on the Singapore Exchange at SGD2.36, which implies a distribution yield of 5.08% according to data compiled on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.