Analysts are optimistic about Frasers Centrepoint Trust’s (FCT) decision to divest Changi City Point. On Aug 30, FCT announced that it would divest the mall to a foreign buyer with a real estate presence in Singapore. The mall was divested at a cash consideration of $338 million. The proceeds will then go towards repaying the REIT’s loans and reducing its aggregate leverage. The REIT’s average cost of borrowings and hedge ratio of fixed-rate loans will also be improved on a pro forma basis.
Frasers Centrepoint Trust (SGX:J69U
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Price targets:
RHB Bank Singapore ‘neutral’ $2.13
DBS Group Research ‘buy’ $2.60
Maybank Securities ‘buy’ $2.35
Citi Research ‘buy’ $2.51
Changi City Point divestment is a positive
