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Frasers Centrepoint to seek shareholder approval for hospitality REIT plans

SINGAPORE — Local property firm Frasers Centrepoint Ltd (FCL), controlled by Thai billionaire Charoen Sirivadhanabhakdi, will seek approval from its shareholders later this month for a proposed listing of a hospitality-focused real estate investment trust.

SINGAPORE — Local property firm Frasers Centrepoint Ltd (FCL), controlled by Thai billionaire Charoen Sirivadhanabhakdi, will seek approval from its shareholders later this month for a proposed listing of a hospitality-focused real estate investment trust.

In its filing with the Singapore Exchange yesterday, FCL said the REIT will have an initial portfolio of six serviced residences and six hotels owned by the company and its majority shareholder, Thailand’s TCC Group, also controlled by Mr Charoen.

FCL, which already manages Frasers Centrepoint Trust and Frasers Commercial Trust, will hold an extraordinary general meeting on May 28.

“The setting up of FHT is in line with our ongoing strategy to optimise capital productivity and strengthen our income base through REIT platforms,” said FCL Group CEO Lim Ee Seng in a statement.

The six serviced residences to be injected are Fraser Suites Singapore, Fraser Suites Sydney, Fraser Place Canary Wharf, Fraser Suites Queens Gate, Fraser Suites Glasgow, and Fraser Suites Edinburgh, which have an appraised value of S$620 million based on a 75-year leasehold.

The hotels comprise InterContinental Singapore, Novotel Rockford Darling Harbour, Park International London, Best Western Cromwell London, ANA Crowne Plaza Kobe and Westin Kuala Lumpur.

FCL last week posted a 44 per cent rise in quarterly profit, boosted by property sales in Australia and the United Kingdom, as well as an improved operational performance from its hospitality operations.

The former property arm of Frasers and Neave achieved S$107.1 million in attributable profit before fair value changes and exceptional items for the fiscal second quarter ended March, up from S$74.2 million in the same period a year ago.

Frasers Centrepoint’s hospitality unit — which includes Fraser serviced residences — delivered a 9 per cent rise in revenue to S$46.7 million. Agencies

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