Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Merger or Acquisition (January 2024)
22 slides from Frasers Centrepoint Trust's merger presentation, Jan 25, 2024
Slide 1: Proposed acquisition of an additional 24.5% effective interest in NEX
Proposed acquisition of an additional 24.5% effective interest in NEX 25 January 2024
Slide 2: Important Notice
Important Notice • This presentation shall be read in conjunction with Frasers Centrepoint Trust's ("FCT") announcement dated 25 January 2024 titled "The Proposed Acquisition of the Remaining 49.0% Interest in Each of NEX Partners Trust and its Trustee-Manager as an Interested Person Transaction". •
Slide 3: Overview of Proposed Acquisition
Overview of Proposed Acquisition Proposed Acquisition ▪ Proposed acquisition of an additional 24.5% effective interest in NEX (“Proposed Acquisition”)1 ▪ After the Proposed Acquisition, FCT will have an effective 50.0% interest in NEX Agreed Property Value ▪ S$2,127.0 million (S$3,352 per sq ft of N
Slide 4: Property highlights – NEX
Property highlights – NEX Largest suburban retail mall in the Northeast of Singapore 23 Serangoon Central, Location Singapore 556083 99-year leasehold title commencing Title from 26 June 2008 (Approximately 84 years remaining) Seven levels of retail space, Description including two basement levels (
Slide 5: Investment rationale
NEX, Singapore Investment rationale
Slide 6: Investment rationale
Investment rationale High quality prime suburban retail Well-positioned to grow 1 asset 3 • Growth through AEI, tenant remix strategy and • Well-located with excellent transportation links rent improvement • Largest prime suburban mall in Northeast Singapore • Improvement in gross revenue per NLA an
Slide 7: High quality prime suburban retail asset
High quality prime suburban retail asset 1 Largest prime suburban mall in Northeast Singapore with connectivity to transport hub ▪ NEX is the largest prime suburban mall by NLA in Northeastern region of Singapore1 ▪ NEX attracted approximately 36.2 million shopper traffic in FY2023, the second highe
Slide 8: High quality prime suburban retail asset
High quality prime suburban retail asset 1 Excellent catchment with projected population growth supported by housing developments ▪ NEX’s primary and secondary trade areas have an average population density of approximately 19,600 per sq km, which is more than twice the national population density o
Slide 9: Strategic fit to FCT’s prime suburban retail portfolio
Strategic fit to FCT’s prime suburban retail portfolio 2 Strengthens FCT’s leading position in the Singapore prime suburban retail market Owners of retail malls outside the Central Area by floor space1 ▪ Acquisition of NEX will uplift FCT to be FCT 8.6% 9.2% (Before Proposed Acquisition) the largest
Slide 10: Strategic fit to FCT’s prime suburban retail portfolio
Strategic fit to FCT’s prime suburban retail portfolio 2 Strengthens FCT’s leading position in the Singapore prime suburban retail market ▪ Acquisition of NEX strengthens FCT’s leading position in Singapore’s prime suburban retail market with four prime suburban malls among the top ten largest retai
Slide 11: Strategic fit to FCT’s prime suburban retail portfolio
Strategic fit to FCT’s prime suburban retail portfolio 2 Enhances the diversification and resilience of FCT’s Retail Portfolio ▪ FCT’s Retail Portfolio’s revenue base will be further diversified with the increased contribution from NEX post-acquisition from 8.1% to 14.7% and improve the resilience o
Slide 12: Strategic fit to FCT’s prime suburban retail portfolio
Strategic fit to FCT’s prime suburban retail portfolio 2 Enhances the diversification and resilience of FCT’s Retail Portfolio ▪ Essential trades make up nearly 50% of NEX’s trade mix, similar to the comparable malls in FCT’s Retail Portfolio. ▪ This reinforces FCT’s trade mix focus on essential tra
Slide 13: Strategic fit to FCT’s prime suburban retail portfolio
Strategic fit to FCT’s prime suburban retail portfolio 2 Enhances the diversification and resilience of FCT’s Retail Portfolio ▪ The similarity between NEX’s trade mix and the comparable malls in FCT’s Retail Portfolio also helps to strengthen FCT’s partnerships with its retailers and provide wider
Slide 14: Well-positioned to grow: AEI, tenant remix and rent improvement
Well-positioned to grow 3 Growth through AEI, tenant remix strategy and rent improvement Key AEI opportunities to unlock value and improve performance1 • Re-deploy approximately 60,000 sq ft2 of non-commercial carpark GFA for retail and office use; • Slab over voids on multiple floors to create new
Slide 15: Well-positioned to grow: AEI, tenant remix and rent improvement
Well-positioned to grow 3 Growth through AEI, tenant remix strategy and rent improvement ▪ There is opportunity for NEX to re-configure and right size to improve trading productivity and rental yield. ▪ This will further diversify the retail offering for its shoppers. Proportion by NLA (%) Proportio
Slide 16: Well-positioned to grow: AEI, tenant remix and rent improvement
Well-positioned to grow 3 Growth through AEI, tenant remix strategy and rent improvement ▪ NEX has a healthy effective occupancy cost and there is good rental growth potential. FY2023 Effective Occupancy Cost1,2 15.7% 15.5% FCT Retail Portfolio FCT Retail Portfolio (Before inclusion of NEX) 1. FY202
Slide 17: Improvement in gross revenue and shopper traffic; tax transparency
Well-positioned to grow 3 Improvement in gross revenue and shopper traffic; tax transparency Strong growth potential from both rents and ancillary revenue Potential opportunity to restructure ▪ Improve NEX’s gross revenue per NLA through rent growth and for tax transparency, directly increasing cont
Slide 18: DPU-accretive acquisition
DPU-accretive acquisition 4 Expected to be 1.5% DPU-accretive on Combined Acquisition basis Acquisition Combined Acquisition1 No adjustment for divestment of Changi City Point and Hektar REIT Including adjustments for divestment of Changi City Point and Hektar REIT DPU (Singapore Cents) DPU (Singapo
Slide 19: Total Acquisition Cost and Capital Structure
Total Acquisition Cost and Capital Structure Total Acquisition Cost Pro Forma Capital Structure S$ million Aggregate Leverage Acquisition Price 321.3 2 39.3% 3,4 37.8% Acquisition Fee Units 5.2 Acquisition Related Cost & Expenses 0.6 GRPL Bank Loans1 196.0 FY2023 Audited Financial Statements After t
Slide 20: Summary
Summary Delivering growth and value and reinforcing FCT’s leadership in the Singapore suburban retail market ▪ NEX is a high quality prime suburban retail asset, a strategic fit to FCT’s portfolio and is well-positioned to grow ▪ NEX serves an excellent growing catchment population with relatively h
Slide 21: Appendix
2 GH ERitont TRUST Appendix
Slide 22: Definition of terms used in this presentation
Definition of terms used in this presentation “%” : Per centum or percentage “MRT” : Mass Rapid Transit “Proposed Acquisition” : The proposed acquisition of the entire issued share capital of FCL “NAV” : Net asset value Emerald (1) Pte. Ltd. “NLA” : Net lettable area “Acquisition Fee Units” : The Un
Frasers Centrepoint Trust — Merger or Acquisition (January 2024) on 6ix