Yesterday, Frasers Centrepoint Trust (SGX: J69U), or FCT, announced plans to acquire 63.1% in AsiaRetail Fund Limited (“ARF”) for S$1.06 billion, as well as to divest its current stake in Bedok Point. The deal is significant, as it will almost double its retail space. FCT had already acquired an initial stake of 17.1% in ARF as far back as April 2019 and had raised its stake progressively to 36.9% before this announcement.

What is ARF?

ARF owns a portfolio of five suburban malls in Singapore – Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1, as well as a commercial property Central Plaza. The total valuation for these assets is S$3.066 billion as of 1 August 2020. ARF’s retail assets (excluding Central Plaza) have a net lettable area (NLA) of 1.1 million square feet and generate a net property income (NPI) yield of 5%. These acquisitions will increase FCT’s retail mall property portfolio from the current seven