Frasers Centrepoint, Frasers Property to increase stakes in Tiong Bahru Plaza owner

Singapore 50 dollar bill

Frasers Centrepoint Trust and Frasers Property announced separately on Thursday that they entered deals to increase their stakes in PGIM Real Estate AsiaRetail Fund, the owner of the Tiong Bahru Plaza mall, for a combined price of around S$635 million.

That will bring their combined holdings to around 66.62 percent.

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.

Frasers Property’s wholly owned subsidiary Frasers Property Investments (Bermuda) entered a deal to acquire 158,145 shares of PGIM Real Estate AsiaRetail Fund, or a 29.99 percent stake, from a shareholder for S$601.5 million, the Singapore property company said in a filing to SGX before the market open on Thursday.

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.

The second acquisition would bring its total stake in the fund to around 47.82 percent, the filing said.

Frasers Property said the acquisition was in line with its strategy to increase recurring income sources in one of its key asset classes, which is mainly suburban retail properties in Singapore.

“Suburban retail is an asset class that has demonstrated resilience across property cycles. The investments offer an opportunity for the group to grow its presence in the retail sector in Singapore through exposure to the company’s portfolio of quality retail properties,” Frasers Property said.

It said it intended to finance the second acquisition of shares via internal funds or external borrowings or a combination of the two.

Frasers Centrepoint also boosts stake

In a separate filing to SGX on Thursday, Frasers Centrepoint Trust said it entered a deal to acquire 8,804 shares of PGIM Real Estate AsiaRetail Fund, or an around 1.67 percent stake, from a shareholder for S$33.5 million.

At end-February, Frasers Centrepoint Trust announced it 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.

The second acquisition would bring the trust’s total stake in the fund to around 18.80 percent, the filing said.

The deal will be financed with a combination of debt and equity financing, including bridge loan facilities, Frasers Centrepoint said, adding the proportion of debt and equity would be made after taking into account market conditions.

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.

Get the Shenton Wire morning briefing in your inbox