S$1.455-FCTR.SI
FCT has priced its placement of 48 mln new units at $1.39 each, top end of the proposed $1.35-1.39 range, as a result of strong demand.
The placement was 4x subscribed by new and existing institutional investors, hence the low 2.5% discount to yesterday’s adjusted volume weighted average price of $1.426.
The $64.3 mln net proceeds are to part finance the $129 mln acquisition of Bedok Point, which brings to 5 suburban malls in FCT’s portfolio.
The acquisition is yield accretive.
Based on minimum 8.42 cents DPU for ye Sept ’11, FCT offers 5.8% yield.
Major enhancement works at Causeway Point, FCT’s biggest asset, are largely completed, which suggests the recent mild decline in Net Property Income will be more than made up for in ye Sept’12.
We maintain BUY.
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