Frasers Hospitality Trust advances in debut

SINGAPORE — Frasers Hospitality Trust, backed by Thailand’s richest man, rose on its first day of trading in Singapore as its higher yield attracted investors, the Bloomberg news agency reported.

The units were 1.7 per cent higher at 89.5 Singapore cents at the close, compared with the offer price of 88 Singapore cents. The trust, which is backed by six hotels and six serviced residences, sold 185.06 million units, it said in a regulatory filing on June 30. Frasers Hospitality issued 418 million securities to raise S$368 million including funds from cornerstone investors, it said in a statement July 11.

Frasers Hospitality Trust plans to offer a dividend yield of 7 per cent for the 2015 financial year, higher than Ascott Residence Trust’s 12-month yield of 6.2 per cent and Far East Hospitality Trust’s 6.4 per cent.

The initial portfolio of 12 properties is spread across seven key gateway cities in Asia, Australia and the UK, with a total of 1,928 hotel rooms and 842 serviced residence units, according to the firm.

The trust will include assets from Thai billionaire Charoen Sirivadhanabhakdi’s closely held TCC Land as well as Frasers Centrepoint, which was spun off from Fraser & Neave in January. Mr Charoen won control of Fraser & Neave last year in a battle with OUE.