- FCT, together with Sunway-MCL and Sekisui House, has submitted a bid for the Bayshore Drive Government Land Sale (GLS) site—the only mixed-use site in the new Bayshore precinct.
- The tender price is \$2.1 billion (\$1,323 psf per plot ratio) for a site area of 618,506 sf and maximum GFA of ~1.6 million sf.
- FCT will own 50% of the commercial component, estimated at 237,882 sf GFA and 160,000–180,000 sf NLA.
- Total development cost is about \$613 million (commercial), with an attractive yield on cost of ~5%.
- Funding will leverage internal resources, external borrowings, and proceeds from the White Sands divestment.
- Target completion is end-2030, and the site is expected to benefit from upcoming population growth and improved connectivity.
- The move signals strategic expansion and could be price-sensitive due to future earnings potential and growth pipeline.
- Retail portfolio committed occupancy remains high at 99.6%.
- Shopper traffic and tenants’ sales continued growth: FY26 YTD figures are up 2.0% (traffic) and 1.8% (sales) year-on-year.
- Healthy capital management: Cost of debt reduced to 3.0% in 3QFY26, with undrawn facilities of \$861.1 million and a Baa2 (Stable) Moody’s credit rating.
- Aggregate leverage is expected to drop further post-White Sands divestment, enhancing financial resilience.
- Hougang Mall AEI: Over 98% of AEI space committed, with completion on track for September 2026. New FairPrice Finest anchor tenant and expanded library will enhance tenant mix and shopper experience.
- NEX AEI: Phase 1 works commenced May 2026, with 87% leasing pre-commitment (73% new-to-mall brands). Target completion is Q4 2028, with a 7% target ROI on \$90 million capex.
- AEIs are expected to drive rental growth, increase asset values, and attract new tenants, potentially impacting future earnings.
- Singapore GDP grew 5.7% in Q2 2026.
- Retail sales remain robust, with FCT’s portfolio outperforming the national average.
- Prime suburban retail rents forecasted to grow by 1–2% in 2026.
- Limited new suburban retail supply (447,000 sf between 2026–2029) supports rental growth and occupancy rates.
- FCT owns four of Singapore’s top ten largest suburban malls.
- Portfolio serves ~3.0 million catchment population (about half of Singapore’s population).
- Essential services account for ~55% of retail portfolio trade mix by GRI, ensuring stability against economic cycles.
- Top tenants include NTUC FairPrice, BreadTalk Group, Metro, Courts, Uniqlo, SK Jewellery, McDonald’s, Koufu, and Minor Food.
