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Frasers Property, via its fully-owned subsidiary Frasers Property Crystal, has agreed to acquire a 17.83 percent stake in open-end private investment vehicle PGIM Real Estate AsiaRetail Fund for $356.4 million.
Singapore’s largest non-listed retail mall fund, PGIM Real Estate AsiaRetail Fund owns and manages six retail malls located near MRT stations – namely White Sands, Tiong Bahru Plaza, Hougang Mall, Liang Court, Tampines 1 and Century Square (pictured). It also owns office property Central Plaza in Singapore as well as four retail malls in Malaysia.
The fund is managed by PGIM Real Estate, which is the real estate investment arm of PGIM, which in turn is Prudential Financial’s global investment management business.
In an SGX filing, Frasers Property revealed that the sale shares’ book value and net asset value as at 31 December 2018 stood at around $355.5 million, including the fourth quarter 2018 dividend.
It explained that the acquisition is in line with the strategy of the group to grow recurring income sources in one of its key asset classes, that is, suburban retail properties within the city-state.
“Suburban retail is an asset class that has demonstrated resilience across property cycles. The acquisition offers 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,” it added.
Frasers Property intends to fund the acquisition via internal funds or external borrowings or a combination of both.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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