Waterway Point, in Punggol. Frasers Centrepoint Trust has acquired a stake in the mall. (Photo: REITsWeek)

Frasers Centrepoint Trust (FCT) has acquired another 10% stake in Waterway Point.

The stake was acquired in a sale and purchase agreement (SPA) with Sekisui House.

It involved procuring 10% of Sapphire Star Trust (SST), which owns the retail units at the asset, for a total acquisition outlay of SGD132.3 million.

The SPA includes the acquisition of 10% of the issued share capital of FC Retail Trustee (FCRT), the trustee-manager of SST.

The acquisition raises the REIT’s stake in the Punggol shopping centre to 50%.

The total acquisition outlay comprises the purchase consideration of the SST units for SGD73.6 million, the amount of SGD3,626.59 to be paid for the FCRT shares, and other expenses.

The outlay also includes the pro rata share of a bank loan owed by SST to certain financial institutions of around SGD57.3 million.

Prior to the SPA, FCT owned a 40% stake in each of SST and FCRT, while Sekisui House held a 20% stake in each of SST and FCRT.

The remaining 40% stake is held by an unrelated third party.

FCT will fund the acquisition, less the sum of the bank loan attributable to the SST units, with a combination of debt and internal cash sources.

FCT was last done on the Singapore EXchange at SGD2.29, which presently implies a distribution yield of 5.36% according to data on the Singapore REITs table.

Related: Frasers Centrepoint Trust ready to acquire Northpoint City South

By Shariffa Al-Habshee

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