Frasers Commercial Trust seeks approval to sell KeyPoint

Frasers Centrepoint Asset Management (Commercial), the manager of Frasers Commercial Trust (FCOT), is seeking unitholder’s approval for the proposed sale of KeyPoint, its property at Beach Road, to Bayfront Ventures for S$360 million.

It is also seeking a mandate to buy back units of FCOT in the future without prior approval of unitholders.

Mr Low Chee Wah, chief executive officer of FCOT, said: “The unit buy-back mandate is a flexible and cost-effective way to boost the unitholders’ funds per unit.”

The company said in a statement that the estimated net proceeds from the sale of KeyPoint is about S$357.8 million.

This is after taking into consideration professional and related expenses of S$2.2 million.

It added that the proposed sale will enable FCOT to realise a S$72.8 million gain.

The proceeds will be used to reduce FCOT’s debt, to fund the proposed buy-back of FCOT units and the partial redemption of its Convertible Perpetual Preference Units.

The remainder may be used for general corporate and working capital purposes.

An Extraordinary General Meeting for unitholders will be held on 12 July.

Source : Channel NewsAsia – 18 Jun 2012

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