Frasers Centrepoint Asset Management Ltd., the manager of Frasers Centrepoint Trust (FCT), has announced that HSBC Institutional Trust Services (Singapore) Ltd., in its capacity as trustee of FCT, has entered into a sale and purchase agreement with an unrelated third party, in relation to the proposed divestment of FCT’s ownership in YewTee Point for S$220 million ($164 million).
The divestment is in line with the manager’s proactive portfolio management strategy to optimize FCT’s portfolio composition and the returns objectives for FCT and its unitholders.
The manager intends to use the net sale proceeds to repay debt, which will lower FCT’s gearing level. The divestment is expected to complete in May 2021.
Upon completion of the divestment, FCT’s retail portfolio will comprise nine retail properties, all located in the suburban regions of Singapore. FCT’s retail property portfolio has an aggregate net leasable area of approximately 207,800 square m
