Mercatus divests 50% indirect stake in Nex for $652.5 mil
The stake was divested to Frasers Property and Frasers Centrepoint Trust.
Mercatus Co-operative, the real estate arm of NTUC Enterprise, has divested its 50% indirect stake in Nex to Frasers Property Limited and Frasers Centrepoint Trust (FCT) for a consideration of $652.5 million.
The agreement was entered into by Mercatus’ subsidiary, Mercatus Tres, on Jan 26.
In line with the divestment, Mercatus Tres will sell its 50% interest in Gold Ridge, which owns, manages and operates Nex to Frasers Property and FCT.
The consideration was determined based on the adjusted net asset value of Gold Ridge, taking into account the agreed property value of $2.08 billion for Nex.
Richard Ng, CEO of FCT's manager, says, “Nex is a complementary fit to FCT’s existing suburban retail property portfolio. This acquisition will further enhance FCT’s portfolio diversification and strengthen its performance.”
Soon Su Lin, Frasers Property Singapore's CEO, adds, “Retail is one of the five asset classes in Frasers Property’s multinational portfolio. This investment in Nex further strengthens our focus in the suburban retail segment where we already have an established platform and strong capabilities.”
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