FCOT seeks approval to sell KeyPoint

Posted on 19 Jun 2012 | Comments Off on FCOT seeks approval to sell KeyPoint

Frasers Centrepoint Asset Management (Commercial), the manager of Frasers Commercial Trust (FCOT), is seeking unitholder’s approval for the proposed sale of KeyPoint, its property at Beach Road, to Bayfront Ventures for S$360 million.

It is also seeking a mandate to buy back units of FCOT in the future without prior approval of unitholders.

Mr Low Chee Wah, chief executive officer of FCOT, said: “The unit buy-back mandate is a flexible and cost-effective way to boost the unitholders’ funds per unit.”

The company said in a statement that the estimated net proceeds from the sale of KeyPoint is about S$357.8 million.

This is after taking into consideration professional and related expenses of S$2.2 million.

It added that the proposed sale will enable FCOT to realise a S$72.8 million gain.

The proceeds will be used to reduce FCOT’s debt, to fund the proposed buy-back of FCOT units and the partial redemption of its Convertible Perpetual Preference Units.

The remainder may be used for general corporate and working capital purposes.

An Extraordinary General Meeting for unitholders will be held on 12 July.

Source : CNA – 2012 Jun 19

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Retail rents in S’pore edge up in Q2

Posted on 18 Jun 2012 | Comments Off on Retail rents in S’pore edge up in Q2

Singapore’s retail rents remained resilient in Q2 2012, supported by a high employment rate and tourist arrivals.

According to property consultancy DTZ, the average rents of prime retail space in Orchard/Scotts Road rose marginally by 0.1 per cent quarter-on-quarter to S$30.33 per sq ft per month. Meanwhile, average rents in suburban areas increased 0.2 per cent to S$28.35 per sq ft per month.

However, DTZ said average retail rents in Singapore are expected to remain flat for the rest of the year. This is due to uncertainties in the eurozone which could curtail consumer spending as well as the tight labour market which could hamper retailers’ expansion plans.

Meanwhile, Singapore is also seeing supply-side pressure from the development pipeline such as The Atrium@Orchard, orchardgateway, Westgate, Jem, Star Vista, which will be completed in 2012 and 2013.

Ms Chua Chor Hoon, Head of DTZ Asia Pacific Research, said, “While landlords are becoming more selective in offering space to control their tenant mix, retailers are at the same time getting more careful in committing to rental space as they desire prime frontage and good shopper traffic.

“This has resulted in temporary vacancies in some shopping centres, especially those in non-prime locations, as landlords were not able to find the right mix of tenants.”

Source : CNA – 2012 Jun 18

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Posted in Office / Retail / Industrial

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