Frasers sells White Sands shopping centre to ‘unrelated third party’ for whopping $467 million

SINGAPORE: Frasers Centrepoint Trust is set to sell its White Sands shopping centre in Pasir Ris for a hefty $467 million.

The real estate investment trust announced on Wednesday (July 1) that it has entered into an agreement with an “unrelated third party” for the sale of the suburban mall. The transaction was brokered by Cushman & Wakefield on behalf of Frasers Centrepoint Trust and is expected to be completed around 30 Sept.

White Sands opened in 1996 as the first major shopping mall in Pasir Ris. Built at a cost of S$130 million, the suburban retail development has served residents in the estate for nearly three decades.

The property has a gross floor area of about 240,371 sq ft and a net leasable area of approximately 150,352 sq ft. It was acquired by Frasers in 2020 and became the smallest retail asset within Frasers Centrepoint Trust’s portfolio.

Richard Ng, chief executive officer of Frasers Centrepoint Asset Management, the manager of Frasers Centrepoint Trust, said the mall has delivered strong performance since its acquisition in 2020.

According to the trust, White Sands was independently valued at S$431 million in May this year. Following negotiations, the parties agreed on a final sale price of S$467 million, representing an 8.4 per cent premium over the latest valuation.

After deducting transaction-related expenses, Frasers Centrepoint Trust expects net proceeds of around S$454.1 million from the divestment. The trust also expects an estimated profit of approximately S$32.4 million from the sale.

Once the transaction is completed, Frasers Centrepoint Trust’s retail portfolio will comprise eight shopping malls with a combined net leasable area of about 2.84 million sq ft. Its remaining assets include Causeway Point, Northpoint City, Tampines 1, and NEX.

Cushman & Wakefield, which advised on the transaction, said demand from investors for quality retail assets in Singapore continues to hold up well. The property consultancy attributed this to Singapore’s reputation as a safe-haven investment destination, resilient retail market fundamentals and a favourable interest rate environment.

Shaun Poh, executive director of capital markets at Cushman & Wakefield, said the successful sale underscores continued investor appetite for well-located retail properties that generate stable income.

He added that these conditions are expected to continue supporting investment activity in Singapore’s retail property market in the coming months.