Frasers Centrepoint Trust said on Thursday entered deals to buy 90,346 shares, or an around 17.1312 percent stake, in PGIM Real Estate AsiaRetail Fund for an aggregate S$342.5 million via 12 separate agreements with certain shareholders.
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 Thursday.
Acquiring the shares is in line with the trust’s investment strategy of seeking mainly retail income-producing properties, and to improve its presence in Singapore’s suburban retail sector, the trust’s manager said, adding it would also offer income diversification and mitigate concentration risk from any single asset or major tenant.
Frasers Centrepoint Trust’s current portfolio includes six Singapore suburban malls in Singapore, located near MRT stations.
The acquisition will be completed via Frasers Centrepoint Trust’s wholly owned subsidiary FCT Holdings (Sigma), the filing said.
The deal follows Frasers Property’s announcement earlier in February that it would acquire a 17.83 percent stake in PGIM Real Estate AsiaRetail Fund from a shareholder for around S$356.4 million.
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.