Frasers Centrepoint Trust to acquire one-third stake in Waterway Point for S$433 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.

Frasers Centrepoint Trust entered a deal to acquire a one-third stake in the Waterway Point mall for S$433.3 million from a subsidiary of Frasers Property, the trust said in a filing to SGX Thursday.

The purchase price is based on agreed property value of S$1.3 billion for the four-storey mall, which is located in Singapore’s Punggol area in the Northeast, the filing said.

The trust said it plans to finance the acquisition using the proceeds of a private placement and non-renounceable preferential offering.

“Waterway Point is a high-quality suburban mall with excellent connectivity to public transport and roads, while its already impressive market catchment is poised for further substantial growth in the near future,” Chew Tuan Chiong, CEO of Frasers Centrepoint Asset Management, the trust’s manager, said in the statement.

“Waterway Point is an excellent fit with our existing portfolio of suburban retail malls,” Chew added, pointing to the acquisition’s entry yield of 4.7 percent.

The trust pointed to independent market research showing Singapore’s Outer North-East has among the lowest retail mall floor space per capita in the city-state.

“This implies the population growth in the Outer North-East area would outpace the growth in retail floor space over the next few years, and it would support Waterway Point’s future growth,” the trust said.

While you’re here, we’re hoping you can help us out.

Shenton Wire has been providing you with quick news and market analysis. But we need your support to continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.

Your monthly contribution will directly fund our journalism.

S$2     S$4       S$8

S$18       S$28       S$88

You can check your existing account here. You can also contact us about other contribution levels or for corporate subscriptions and syndication queries.