Frasers Centrepoint Trust Raises S\$421.3 Million to Fund Acquisition and Debt Repayment
In a move that could significantly impact the share price of Frasers Centrepoint Trust (FCT), the real estate investment trust has successfully raised S\$421.3 million through an equity fund-raising exercise. The funds will be used to repay existing debts and finance the acquisition of a 100% interest in the private trust known as North Gem Trust (NG Trust) and its trustee-manager, Frasers Property North Gem Trustee Pte. Ltd.
Key Highlights:
- Gross proceeds of S\$421.3 million raised from a private placement and a preferential offering [[2]]
- S\$218 million from the private placement has been utilized to repay existing debts [[2]]
- Remaining S\$197.2 million from the preferential offering will be used to fund the acquisition of NG Trust and its trustee-manager [[2]]
- The acquisition is considered an interested person transaction and is subject to approval from unitholders [[2]]
The acquisition of NG Trust and its trustee-manager is a strategic move by FCT to expand its portfolio and strengthen its position in the Singapore real estate market. The transaction is expected to be accretive to FCT’s distribution per unit and net asset value per unit, potentially driving up the unit price.
Investors should closely monitor the progress of the acquisition and the utilization of the funds raised, as these developments could have a significant impact on the future performance and valuation of FCT.
Disclaimer: This article is for informational purposes only and does not constitute a recommendation to buy or sell any securities. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.
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