SINGAPORE (THE BUSINESS TIMES) - Frasers Centrepoint Trust 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 (March 19) 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 unitholders.
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 in Choa Chu Kang has a net lettable area of about 6,844 square metres or 73,669 square feet. The mall has 70 tenants as of end-September last year, including NTUC FairPrice, Koufu food court, Watson’s and KFC.
The counter ended flat at $2.56 on Friday, before this announcement was made.