Frasers Centrepoint Trust (FCT) is acquiring an additional 12.07 per cent stake in PGIM Real Estate Asia Retail Fund (ARF) for $197.2 million.

ARF is the largest non-listed retail mall fund here. It owns five malls near MRT stations - Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1 - as well as the Central Plaza office block and a mall in Malaysia.

It is managed by PGIM Real Estate, which is part of PGIM, the US$1 trillion (S$1.4 trillion) global investment management arm of Prudential Financial.

FCT holds 24.82 per cent of ARF. The acquisition, expected to be completed this month, will raise its interest to 36.89 per cent.

Frasers Property owns the remaining stake of 63.1 per cent in ARF.

FCT's manager said that the acquisition is in line with its strategy to acquire interests in quality properties used primarily for retail and to enhance its presence in Singapore's suburban retail sector.

Mr Richard Ng, chief executive of the manager, said: "The ARF portfolio shares similar characteristics to FCT's malls, which focus on essential spending and F&B as well as their locations in populous residential areas and close proximity to transportation nodes.

"These characteristics continue to underpin the resilience of the suburban retail sector, notwithstanding the difficult Covid-19 period."

THE BUSINESS TIMES