Shares & Derivatives
Frasers Centrepoint Trust Divest Hektar REIT
By My Sweet Retirement  •  September 24, 2023
Frasers Centrepoint Trust divest Hektar REIT. Following my previous post Frasers Centrepoint Trust Hektar REIT Diversifies, Frasers Centrepoint Trust has decided to divest all units of Hektar REIT. Rationale for Divestment of Hektar REIT As shared in the announcement, the manager share that Frasers Centrepoint Trust’s unitholding in Hektar REIT is non-core to its portfolio and investment strategy. The Divestment enables Frasers Centrepoint Trust to recycle the net proceeds to be deployed for capital management, working capital and/or investments that are consistent with its core suburban retail strategy. In my opinion, the divestment make senses
  1. Frasers Centrepoint Trust has a high gearing of 40.2%. After divestment of Changi City Point, the gearing is 37.1%. With the possibility of Hektar REIT asking for more money via placement, Frasers Centrepoint Trust is receptive against this.
  2. The divestment benefits Frasers Centrepoint Trust as the proceed can be used to pay off debt and lower its gearing.
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By My Sweet Retirement
I am a working salaried professional in my mid 30s. Just like most Singaporeans, I worked long office working hours, often trying very hard to find some work life balance. The Sweet Retirement Blog was created to share my journey towards achieving a comfortable retirement life. I believe we cannot simply rely solely on our Central Provident Fund savings when reaching old age. Neither can we rely solely on our bank savings as we all know the interest rates cannot beat inflation.

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