Saturday, 5 November 2016

Frasers Centrepoint Trust Latest Acquisition

FCT acts fast. Hot on the heels of its quarterly results announcement 2 weeks ago where management hinted that they will be looking at acquisition of asset held and managed by their sponsor, they announced yesterday that they will be buying the Yishun 10 Cineplex from Bonvest Holdings.

Yishun 10 houses the only Cineplex – Golden Village in Yishun, and several other retail shops such as Koi, Singpost, Arnold’s Chicken etc. It is located just across the road from Northpoint. It is not a big property and acquisition to be honest, as its NLA is just 10k square feet, about 5% of Northpoint’s NLA. And it cost FCT $37.75m to be paid fully in cash to the seller. The property is valued at $40m and enjoyed 99.5% occupancy.

As a Yishun resident that frequent the cinema there, I am excited to hear this news. I was just commenting to my wife few weeks ago that how good will it be if FCT can buy over Yishun 10, integrate it into part of the enlarged Northpoint City by dovetailing into its ongoing AEI at Northpoint, it will be a great and big shopping mall in the north. Certainly it benefits the northerners, and further cement FCT’s strong position in the north.
Northpoint, Northpoint City, Yishun 10. If all integrated together, it will be huge.
Source: FCT Corporate announcement

As a long term FCT shareholder, I am also excited to witness the rejuvenation of FCT’s assets, especially the developments happening in the north side. I blogged about FCT and Yishun’s potential long time ago, and it seems that vision back then is slowly turning into reality. Not just the better performance of FCT in future, and also tangible benefits in form of better shopping experience and one more weekend destination for me in future.

Not sure if FCT will redevelop Yishun 10 to be seamlessly connected to Northpoint? That should increase its NLA by at least 10%? And hope its next acquisition will be the Waterway Point – another great shopping mall I like over at Punggol. 

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