Frasers Property to acquire 18 percent stake in Tiong Bahru Plaza owner for around S$356 million

Waterway Point mall, by Frasers Property, at Punggol New Town in Singapore; taken August 2018.Frasers Property‘s Waterway Point mall at Punggol New Town in Singapore. The property is 40 percent owned by Frasers Centrepoint Trust.

Frasers Property said on Monday it would acquire around 94,000 shares, or a 17.83 percent stake, in Tiong Bahru Plaza owner PGIM Real Estate AsiaRetail Fund for around S$356.4 million.

PGIM Real Estate AsiaRetail Fund, an open-end private investment vehicle, is the largest unlisted retail mall fund in Singapore, and it owns and manages six malls near MRT stations, as well as a Singapore office property and four malls in Malaysia, it said in a filing to SGX before the market open on Monday.

Frasers Property, which is making the acquisition via its wholly owned subsidiary Frasers Property Crystal, said the deal was in line with its strategy of increasing its recurring income sources.

“The assets in the company are primarily suburban retail properties in Singapore, an asset class in which the group has significant experience,” Frasers Property said, adding that suburban retail typically shows resilience across property cycles.

The book value and net asset value of the shares were around S$355.5 million, as of end-December, it said.

PGIM Real Estate AsiaRetail Fund is managed by PGIM Real Estate, part of PGIM, which is Prudential Financials’ global investment management business with more than US$1 trillion under management.

The six Singapore malls owned by PGIM Real Estate AsiaRetail Fund are Tiong Bahru Plaza, White Sands, Liang Court, Hougang Mall, Century Square and Tampines 1, and the office property Central Plaza, the filing said.

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