- 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.
- The divestment benefits Frasers Centrepoint Trust as the proceed can be used to pay off debt and lower its gearing.
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
