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New units issue in Aquamarine Star Trust to raise S$442.7m

THE trustee-manager of Aquamarine Star Trust (AST) is raising S$442.7 million from the issue of new units to a long-term strategic investor, said Frasers Property Limited, the parent company of the trustee-manager.

The issue by Frasers Property Aquamarine Trustee will be such that the new investor and FCL Aquamarine, which currently owns 100 per cent of the existing units in issue in AST, will each hold half of the units in issue upon the closing of the transaction.

AST holds Frasers Tower, a 38-storey premium Grade A office development with a three-storey adjacent retail podium, located on Cecil Street. It has total net lettable area of about 685,000 square feet, of which around 93 per cent is leased to a "diversified base of reputable tenants" as at March 31, 2019. 

The agreed value of the property is S$1.97 billion, negotiated between the investor and FCL Aquamarine. It took into account independent valuations of the property as at Apr 30, 2019 by Knight Frank and Cushman & Wakefield VHS, based on the capitalisation approach and a discounted cash flow analysis.

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The expected proceeds of S$442.7 million was based on 50 per cent of AST's adjusted net asset value immediately after the closing of the proposed transaction.

Shares in Frasers Property closed at S$1.87 on Wednesday, up S$0.03 or 1.63 per cent.