NEX, an asset of Frasers Centrepoint Trust

Frasers Centrepoint Trust (FCT) is acquiring an additional 24.5% effective interest in the retail mall NEX for an estimated total acquisition cost of SGD523.1 million.

NEX is the largest suburban mall in the northeast of Singapore by net lettable area.

It is fully occupied and features 634,631 square feet of retail space across seven levels.

“The acquisition follows from our initial acquisition of 25.5% in NEX in February 2023 and will raise FCT’s effective interest to 50.0% on completion”, said Richard Ng, CEO of the REIT’s manager.

“NEX is an excellent asset with strong financial and operational performance, and is a strategic fit to FCT’s prime suburban retail portfolio”, he added.

The REIT’s also manager posited that the move would diversify FCT’s income base and enhance its portfolio resilience.

“The growth opportunities at NEX through AEI, tenant remixing and rent improvement will support FCT’s objective to deliver regular and stable distributions to its unitholders”, said Ng, adding that the acquisition will be DPU-accretive.

FCT intends to finance the acquisition with net proceeds from a proposed private placement launched on 25 January 2024, and debt financing.

The placement is being offered at an issue price of between SGD2.1600 and SGD2.2040 and will raise gross proceeds of no less than SGD200.0 million.

Units of FCT are currently halted from trading on the Singapore Exchange but was last done at SGD2.28.

By Shariffa Al-Habshee

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