Frasers Centrepoint Trust (FCT) has acquired an additional 24.5 per cent effective interest in the retail mall Nex for approximately SG$523.1 million (US$390 million), as part of a share purchase agreement with HSBC Institutional Trust Services.
The deal follows Frasers’ initial acquisition of 25.5 per cent in Nex in February last year.
Richard Ng – CEO of Frasers Centrepoint Asset Management, the manager of FCT – described Nex as an “excellent asset” with strong financial and operational performance and a “strategic fit” to the company’s prime suburban retail portfolio.
“The increased stake in Nex will further diversify FCT’s income base, enhance its portfolio resilience and improve its overall retail portfolio performance,” he added.
Nex is the largest suburban mall in the northeast of Singapore by net lettable area (634,631sqft). The mall features a broad mix of retail, entertainment and dining options, including supermarket FairPrice Xtra, department store Isetan, H&M, Food Junction and Shaw Theatres cineams. It has seven levels of retail space, including two basement levels, and 400 car parks.
Frasers plans to finance the total acquisition cost through the net proceeds from a proposed private placement and debt financing.
