SINGAPORE (Aug 31): Singapore-based Frasers Centrepoint Trust (FCT) has subscribed for its full allocation in the renounceable rights issue of associate Hektar REIT, theedgesingapore.com reported yesterday

Shareholders of Hektar REIT would be eligible to apply to seven rights units for every 46 existing units at the issue price of RM1.11.

On June 10, 2016, Hektar REIT announced the proposed acquisition of.1Segamat Shopping Centre, a shopping mall located in Segamat, Johor, which has a net lettable area of 223,438 sq ft.

The proceeds from the right issue will be used to part finance the acquisition of 1Segamat. The rights subscription of S$6.78 million (RM21.31 million) was funded by FCT's internal resources, reported theedgesingapore.com.

Following the issuance, FCT holds a 31.15% stake in Hektar REIT. 1Segamat will be Hektar REIT's sixth property in its asset portfolio, which comprise shopping centres situated in Subang Jaya, Melaka, Muar, Sungai Petani and Kulim

Hektar REIT is Malaysia’s first retail focused REIT. It is managed by Hektar Asset Management Sdn Bhd

FCT’s principal activity is to invest in income-producing properties used primarily for retail purposes, in Singapore and overseas.