Singapore retail real estate investment trust Frasers Centrepoint Trust said on Thursday it is acquiring an additional 24.5% effective interest in retail mall NEX for S$523.1 million ($390.4 million).
“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,” FCT’s Chief Executive Officer Richard Ng said in a statement.
The acquisition values the whole of NEX, the largest suburban mall in the northeast of Singapore by net lettable area, at S$2.13 billion, according to the statement.
“This acquisition reinforces our focus and leadership position in the Singapore prime suburban retail market,” Ng said. “The increased stake in NEX will further diversify FCT’s income base.”
FCT said it intends to finance the acquisition via net proceeds from a proposed private placement of S$200 million launched on Thursday, and from debt financing.
Bank of America, DBS, OCBC, UOB, and Maybank are the underwriters for the private placement, according to a separate term sheet on Thursday.
Reuters