Yishun Mall To Get Bigger, Better With New Northpoint 2

Source : The Straits Times, Oct 22, 2007

Extension is one of three malls Frasers Centrepoint will inject into its trust

YISHUN residents, who for years managed with only Northpoint to meet their shopping needs, will get a retail shot in the arm next year.

Frasers Centrepoint Trust (FCT), a real estate investment trust (Reit) that owns retail malls including Northpoint, plans to integrate the mall with upcoming Northpoint 2.

Northpoint 2 is set to be completed next year. Once it is fully integrated with Northpoint, it will create a single shopping mall with a total net lettable area of 232,000 sq ft.

FCT says the enlarged mall will be the 'heartbeat of the north, infusing new life and vibrancy into the community that the mall has been serving over the past 14 years'.

The trust yesterday turned in a bumper maiden set of full-year financial results. Its distributable income for the year ended Sept 30 was $40.4 million, a hefty 11.1 per cent above forecast.

For the full year, distribution per unit came to 6.55 cents representing a yield of 4.4 per cent, based on yesterday's closing price of $1.50.

For the quarter, distributable income was $10.3 million, while distribution per unit was 1.67 cents.

As the economy keeps thriving, new and renewed leases at malls such as Causeway Point, Northpoint and Anchorpoint have been sealed at 12 per cent above previous rates.

The trust's growth strategy includes enlarging its portfolios. Three malls have been acquired by Frasers Centrepoint and are ready to be injected into the trust: Northpoint 2 in the fourth quarter next year, Yew Tee Point and Bedok Mall.

These three new malls, together with Centrepoint shopping centre, will double the trust's portfolio.

FCT will enhance its malls 'to benefit tenants and pave the way for further rental growth', said Mr Christopher Tang, chief executive of the trust's manager.

One example is Northpoint. There is also Anchorpoint's makeover into a village mall concept that is due to be completed next month.

Other than new food and beverage tenants such as a new Tung Lok concept Zhou's kitchen, Anchorpoint will feature a cluster of factory outlets from Charles & Keith and G2000 for example.

Yesterday, health-care Reit, First Reit, reported its third-quarter results.

Its distributable income was $4.61 million for the third quarter ended Sept 30. With 1.72 cents as a distribution per unit, the annualised figure of 6.7 cents gives a distribution yield of about 8.65 per cent based on last Friday's close of 77.5 cents.

The distribution per unit for the quarter exceeded its forecast by 7.5 per cent.

First Reit has four health-care facilities in Singapore.

Dr Ronnie Tan, chief executive of the trust's manager, said: 'Leveraging on the buoyant regional health-care markets, coupled with our strong acquisition pipeline, we are confident of raising our asset portfolio to $500 million before the end of 2009.'