Frasers Centrepoint divests stake in Compass Point Mall

It’s ditching non-core assets.

Frasers Centrepoint has sold its entire stake in a joint venture company which manages Compass Point, a suburban mall in Sengkang, the company said in a statement to the SGX.

The joint venture company, named Gemshine, is owned by FCL and Lexis 88 Investments.

Under the deal, FCL's subsidiary FCPL will sell its entire 1,899 ordinary shares in the capital of Gemshine for $19.6m.

FCPL will also novate its share of intercompany loans for a consideration of $60.7m.

FCL said that the aggregate consideration will be paid in cash when the deal is completed in February 2016. 

Gemshine has a carrying value of $4.82m in FCL's latest financial statement, and the transaction is not expected to have a material effect on the company's assets for the current financial year.

Compass Point is currently closed for renovations and is expected to re-open in October 2016.