Tuesday, 13 October 2020

Frasers Centrepoint Trust Preferential Offering

Fraser's Centrepoint Trust is one of my top 10 largest holdings, mainly because I bought it under $1 during GFC and it doubled in price. For 10 years, FCT never had rights issues and preferential offerings then it starting joining the crowd. Now in 2020, there's a PO of 290 new shares for every 1,000 shares held in order for FCT to buy the remaining interest in AsiaRetail Fund from Fraser's Property (via a subsidiary). With this acquisition, FCT establishes itself firmly as a local suburban mall play unlike some REITs that seem to be randomly acquiring properties. 

I like patronising suburban malls though the suburban malls I regularly visit seem to all be linked to Capitaland, probably because I live in the West. But from the foot traffic that I've seen, suburban malls seem to be doing pretty ok.

Unfortunately, the PO price of $2.34 is pretty close to the market price (on 11/12 Oct, the low price was $2.35, just $0.01 but as of 13 Oct it seems to have inched upwards).

I'm holding FCT in CPFIS and CDP, and I have applied for 9,000 which is more or less equal to my entitlement. Don't feel the need to apply for excess given the small gap between PO price and market price.

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