On 14th April 2023, Cathay Cineplexes announced that they will be opening a new cinema at Century Square. The new six-screen cinema is expected to open by the 4th quarter of 2023.
This is actually good news for unit holders of Frasers Centrepoint Trust. Why?
If you do not know, in 2020, the manager of Frasers Centrepoint Trust has acquired the remaining approximately 63.1% of the total issued share capital of AsiaRetail Fund Limited. Century Square is one of the five retail malls under AsiaRetail Fund’s portfolio (Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1).
Folks who lived in the East will know that Filmgarde used to operate their cinema at Century Square. Filmgarde is in fact a key tenant. However, Filmgarde announced its closure in January 2022 and they stopped their operations on 24th April 2022. Since then the space has been unoccupied. This means the loss of rental income for Frasers Centrepoint Trust.
The below is Frasers Centrepoint Trust’s retail portfolio committed occupancy as of 31st December 2022.
The addition of Cathay Cineplexes as an anchor tenant will definitely improve Century Square’s occupancy. This will translate to an increase in Distribution Per Unit (“DPU”) for unitholders.
I am looking forward to the opening of Cathay Cinema at Century Square!