Frasers Property unit to buy rest of Yishun 10 complex from Frasers Centrepoint Trust for S$34.5 million
FCT says net proceeds from the sale of the 10 strata lots to its sponsor will be used to repay debt and lower its aggregate leverage
[SINGAPORE] Frasers Property is proposing to buy the remaining properties at Yishun 10 complex that it does not as yet own from Frasers Centrepoint Trust (FCT) .
This comes after Frasers Property, FCT’s sponsor, acquired a cinema at the shopping and entertainment development from Golden Village (GV) Multiplex earlier this year.
On Monday (Aug 25), Frasers Property’s wholly owned subsidiary Lion (Singapore) entered a sale and purchase agreement with HSBC Institutional Trust Services, the trustee of FCT, to acquire 10 strata lots at 51 Yishun Central 1.
The lots are located in Yishun 10, the strata-titled development next to the Northpoint City mall. They have a 99-year leasehold term which commenced on Apr 1, 1990, and a combined area of 966 square metres. In March this year, FCT moved to take full ownership of Northpoint City for S$1.17 billion.
The consideration for the proposed transaction is S$34.5 million, an average of two independent valuations of the properties as at May 31, 2025.
Independent property valuers Savills Valuation and Professional Services and Jones Lang LaSalle Property Consultants valued the Yishun 10 units at S$35 million and S$34 million, respectively, as at end-May.
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Lion (Singapore) already owns the only other property at Yishun 10, the cinema on the second floor of the complex. It completed its S$48 million acquisition of the cinema from GV Multiplex on Aug 8, 2025, and leased it back to the cinema operator for an 18-month period starting from that date.
Hence, Lion (Singapore) will have full ownership of Yishun 10 once the proposed transaction is complete.
Frasers Property said that the proposed transaction aligns with its strategy of optimising capital productivity through active portfolio management initiatives.
It will potentially allow the group to generate additional value from the longer-term redevelopment potential of the asset, Frasers Property said.
The manager of FCT said the divestment will benefit unitholders of the trust, as it aligns with its portfolio management strategy.
Net proceeds from the divestment – of around S$33.8 million after deducting related expenses – will be used to repay debt, which will reduce FCT’s aggregate leverage and strengthen its financial position, the manager said.
FCT in March entered an agreement to purchase the South Wing of Northpoint City, the mall next to Yishun 10. As FCT already owned the mall’s North Wing, which it acquired back in 2006, the acquisition of the South Wing would grant it full control of Northpoint City.
This would allow FCT to implement holistic asset enhancement initiatives and tenant mix strategies that unlock greater value across both wings of the property, Richard Ng, chief executive of the manager of the trust, said in March.
Shares of Frasers Property ended 1.5 per cent or S$0.015 lower at S$0.985 on Tuesday; units of FCT closed 0.4 per cent or S$0.01 higher at S$2.30.
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