Singapore: Frasers Centrepoint (FCL) plans to place 12 properties into the portfolio of Frasers Hospitality Trust (FHT), a REIT expected to list later this year.
FCL said yesterday Frasers Hospitality Trust (FHT) will hold six serviced apartments and six hotels from its majority shareholder, TCC Group. The properties are spread across Singapore, Australia, Britain, Japan and Malaysia.
FCL will place six of its serviced apartment properties, with a combined 830 units, in to the trust. They are Fraser Suites Singapore, Fraser Suites Sydney, Fraser Place Canary Wharf, Fraser Suites Queens Gate, Fraser Suites Glasgow and Fraser Suites Edinburgh.
FCL says if they are valued on the basis of a 75-year lease, their estimated worth is $620.4 million and proceeds from the sale would be at least $651.7 million.
TCC Group will place six hotels with a collective 1,928 rooms. They are InterContinental Singapore, Novotel Rockford Darling Harbour, Park International London, Best Western Cromwell London, ANA Crowne Plaza Kobe and Westin Kuala Lumpur.
FCL group chief executive Lim Ee Seng said: “The setting up of FHT is in line with our ongoing strategy to optimise capital productivity and strengthen our income base through Reit platforms.”
The company said cash from the divestment of the properties will allow it to “pursue growth opportunities”.
An extraordinary general meeting will be held on May 28 to seek shareholders’ approval for injection of the properties. FHT will be a stapled trust comprising a Reit and a business trust, which will be dormant at the date of the listing.
PricewaterhouseCoopers Corporate Finance advised FCL’s audit committee and independent directors to recommend that minority shareholders vote for the listing.
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