Frasers Centrepoint Trust (FCT) announced the acquisition of 100% interest of Northpoint City South Wing on the morning of 25 Mar 2025, following up with another announcement of private placement and preferential offering for investors and unitholders.
Screenshot of Northpoint City from FCT presentation slides.
Some Important Points On The Equity Fund Raising
The total acquisition cost is Singapore Dollar (SGD) 1,172.9 million, with the agreed property value of SGD 1,133 million. No less than SGD 400 million will be raised from private placement and preferential offering (the private placement had just ended with around SGD 220 million raised). From the proceeds of the raised equity, around SGD 415.2 million would be used to repay existing debts, and around SGD 6.1 million would be used for fees and expenses associated with the equity raising exercise.
Post-acquisition, it is expected that the distribution per unit (DPU) accretion increase by 2.0%, with aggregated leverage (a.k.a. gearing) increase 1.3% to 39.8%, all on a pro forma basis and on the assumption that the perpetual securities are issued.
The application for the preferential offering units is scheduled to open on 8 Apr 2025 and close on 16 Apr 2025, with the listing of the units indicatively on 25 Apr 2025.
The Bedokian’s Take
A good outcome from this exercise is that FCT is having full ownership of the entire Northpoint City and with it, cementing their place as the true “King of the North (of Singapore)” of suburban malls, complementing Causeway Point in Woodlands. Positioned at the “heart” of Yishun town with the namesake MRT station and bus interchange, and with 100% occupancy to boot (for both wings as of 31 Dec 2024), it is an almost sure-win in terms of having a captive market population through Yishun residents.
The major risk variable to FCT’s hold in the north is the impact of the Johor Bahru – Singapore Rapid Transit System (RTS), which I had covered here and it represented a double-edged knife, i.e., could go both ways. Overall, we would be going for the preferential offer due to FCT’s suburban mall dominance and to keep our holdings from being diluted (anyway, I had disclosed our intention to add more FCT in our previous post, so this offering had partially fulfilled it).
For the preferential offering, the issuance ratio is 54 units out of every 1,000 units owned. As we prefer our holdings to be rounded to the nearest 100, we are likely to subscribe for additional units to make up the number.
Disclosure
The Bedokian is vested in FCT.
References
Frasers Centrepoint Trust. Presentation in relation to the Proposed Acquisition of 100% interest in Northpoint City South Wing and its Trustee-Manager as an interested person transaction. March 2025. https://links.sgx.com/FileOpen/FCT_SGXAnnouncement_Investor_Presentation.ashx?App=Announcement&FileID=837297 (accessed 28 Mar 2025)
Frasers Centrepoint Trust. Results of the private placement and pricing of new units under the private placement and the preferential offering. 26 Mar 2025. https://links.sgx.com/FileOpen/FCT_SGX_Announcement_Results_of_Private_Placement.ashx?App=Announcement&FileID=837445 (accessed 28 Mar 2025)
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