Thursday, August 25, 2011

Fraser Centrepoint Trust

Fraser Centrepoint Trust: A leasehold plot at the rear of The Centrepoint mall could be put on sale together with some 66 apartments. Co reportedly owns 64 of the apts and has around 40-50% of strata area on this plot. A sales committee for the collective sale has been set up and co has representation though not majority in this committee. A min of 80% of both share value and strata area have to agree for any collective sale to go through. Co is expected to be a natural contender in any sale and an expected sale price would be approx $1700-1800 psf ppr. Accessibility issues also have to be sort out due to the leasehold site sharing the same carpark as Centrepoint mall and owning the land in which the carpark entrance is on.

In separate news, co shed some light on the funding of the acquisition of Bedok Point. Up to 55m units could be sold at $1.38 per unit, raising $75.9m of the $127m needed with $65m raised in debt to finance the acquisition. Co has guided gearing to increase to 33.5% from 31.7%. This acquisition will increase DPU yield from current 5.86% to 5.92%

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