Frasers Centrepoint Trust to divest YewTee Point for S$220m

FRASERS Centrepoint Trust will divest YewTee Point for S$220 million, having entered into a sale-and-purchase agreement with an unrelated third party.

Its manager, Frasers Centrepoint Asset Management (FCAM), said in a regulatory filing on Friday night that the transaction is expected to be completed on May 28.

FCAM intends to use the sales proceeds to repay debts and lower the trust's gearing level.

The Choa Chu Kang mall was valued at S$200 million by Savills Valuation and Professional Services as at Jan 31.

FCAM stated that the divestment is in line with its proactive portfolio management strategy to optimise the trust's portfolio composition and the returns objectives for its unitholders. Upon completion of the divestment, FCT's retail portfolio will comprise nine retail properties, all located in the suburbs of Singapore.

The counter ended flat at S$2.56 on Friday, before this announcement was made.

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