Frasers Centrepoint Trust to divest YewTee Point for $220m
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Frasers Centrepoint Trust (FCT) will divest YewTee Point for $220 million, having entered into a sale-and-purchase agreement with an unrelated third party.
Its manager, Frasers Centrepoint Asset Management (FCAM), said in a regulatory filing on Friday night that the transaction is expected to be completed on May 28.
FCAM intends to use the net sales proceeds, estimated at $219.9 million, to repay debt and lower the trust's gearing level.
The Choa Chu Kang mall was valued at $200 million by Savills Valuation and Professional Services as at Jan 31.
FCAM stated that the divestment is in line with its proactive portfolio management strategy to optimise the trust's portfolio composition and the returns objectives for its unit holders.
Upon completion of the divestment, FCT's retail portfolio will comprise nine retail properties, all located in the suburbs of Singapore.
They are Causeway Point, Northpoint City North Wing, Changi City Point, Waterway Point (in which the trust holds a 40 per cent interest), Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1.
YewTee Point has a net lettable area of about 73,669 sq ft.
The mall has 70 tenants as at end-September last year, including supermarket chain FairPrice, Koufu foodcourt, Watsons and KFC.
The counter ended flat at $2.56 on Friday, before this announcement was made.
THE BUSINESS TIMES
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$200m
Amount YewTee Point was valued at by Savills Valuation and Professional Services as at Jan 31.
