The manager of Frasers Centrepoint Trust (FCT) announced that it will be acquiring an additional 10% stake in Waterway Point for $132.3 million, raising its total stake in the mall to 50.0%.
Under the terms of this deal, HSBC Institutional Trust Services, as the trustee of FCT, will be acquiring from Sekisui House 10.0% of the total issued units of Sapphire Star Trust (SST), comprising 500,001 ordinary units and about 59.9 million redeemable preference units; and 10.0% of the issued share capital of FC Retail Trustee, which is the trustee-manager of SST. SST currently holds the retail units in Waterway Point, which is in Punggol.
The acquisition will increase FCT’s interest in each of SST and FCRT (and thereby FCT’s effective interest in Waterway Point) from currently 40.0% to 50.0%.
The total acquisition outlay for this acquisition is approximately $132.3 million, comprising approximately $73.6 million for the purchase consideration for the unit acquisition, approximately $3,626 for the FCRT acquisition, approximately $57.3 million in the pro rata share of bank loan owed by SST, and the sum of approximately $1.4 million for the manager’s acquisition fee, estimated professional and other fees and expenses incurred or to be incurred by FCT in connection with the acquisition.
The purchase consideration of the SST units is based on an agreed property value of the property of about $1.3 billion, after taking into account the estimated net assets and liabilities of SST as at the date of completion under the sale and purchase agreement which was negotiated on a willing-buyer and willing-seller basis taking into account the independent valuation conducted by Savills Valuation and Professional Services.
The manager intends to fund this acquisition less the sum of the bank loan attributable to the SST Units and the acquisition fee with a combination of debt and/or internal sources.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
As at Sept 12, units in FCT closed at $2.29.
