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Frasers Property
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Joelton
Supreme |
03-Sep-2026 10:58
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Frasers Property to redevelop Yishun 10 into mixed-used complex by mid-2031 [SINGAPORE] Singapore&rsquo s first cinema multiplex Yishun 10 will cease operations on Mar 2, 2027, to be redeveloped into a mixed-use development containing about 110 residential units. The new development, targeted for completion by mid-2031, will also contain a retail podium at street level and a &ldquo landscaped facilities deck on the second storey&rdquo . It will be the first residential launch in Yishun Central in more than a decade, said the cineplex&rsquo s owner Frasers Property on Wednesday (Sep 2). The property developer will continue to manage Yishun 10 after its redevelopment. Frasers Property bought the cineplex, located at 51 Yishun Central 1, from cinema operator Golden Village in June 2026. It then bought the 10 strata lots in the building from Frasers Centrepoint Trust &ndash which it sponsors &ndash for S$34.5 million. A Frasers Property spokesperson in May told The Business Times that the group regularly explores potential uses for existing properties in the ordinary course of its business. The Yishun 10 site has a site area of 39,125 square feet (sq ft) and a gross floor area of 117,376 sq ft. It was opened on May 28, 1992, and renovated in 2010, after which it was renamed GV Yishun. Shares of Frasers Property : TQ5 0% fell 1 per cent or S$0.01 to close at S$1.01 on Tuesday. |
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Joelton
Supreme |
01-Sep-2026 09:47
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Frasers Property acquires Cuppage Terrace in Orchard Road area for S$175 million [SINGAPORE] Frasers Property has acquired Cuppage Terrace &ndash a cluster of 17 conservation shophouses in the Orchard Road area &ndash for an agreed property value of S$175 million. The asset is a &ldquo distinctive lifestyle enclave&rdquo with Peranakan-style shophouses and a &ldquo vibrant mix of food-and-beverage, entertainment and nightlife offerings&rdquo , Frasers said in a statement on Monday (Aug 31). Cuppage Terrace has a total gross floor area of 34,678 square feet, excluding the outdoor refreshment area, and 62 years left on its 99-year lease. It is located next to The Centrepoint, Frasers&rsquo flagship asset on Orchard Road. The purchase follows Frasers&rsquo successful collective-sale tender for the leasehold rear plot of The Centrepoint for S$391.9 million in February. Frasers is the majority shareholder in the freehold front plot at The Centrepoint, and owns 96 per cent of the retail units by strata area. It also fully owns 51 Cuppage Road, a 10-storey office building directly connected to The Centrepoint. With the addition of Cuppage Terrace to its portfolio, Frasers wants to take a more coordinated approach to asset enhancement and long-term value creation. Soon Su Lin, chief executive of Frasers Property Singapore, said that the move &ldquo enables us to unlock synergies across adjacent sites and better position our properties to contribute to the ongoing transformation of Orchard Road&rdquo . The company will continue to explore long-term opportunities to enhance its Orchard Road assets, in line with efforts to rejuvenate the shopping district. Frasers shares ended Monday at S$1.02, up by S$0.01 or 1 per cent. |
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Joelton
Supreme |
31-Aug-2026 10:11
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Frasers Property shareholders approve S$2.1 billion hospitality portfolio revamp
[SINGAPORE] Shareholders of real estate giant Frasers Property : TQ5 -0.98% approved at a Friday (Aug 28) extraordinary general meeting a proposed portfolio optimisation of its hospitality assets under Frasers Hospitality Trust (FHT), which was taken private in 2025.
Some 99.07 per cent of the shareholders present and voting, representing more than 159 million shares, signalled their approval of the resolution. The remaining votes, representing nearly 1.5 million shares, were against the move. The transaction is expected to be completed by the end of FY2026. Frasers Hospitality CEO Eu Chin Fen said that the group will now work towards implementation of the revamp, adding that this includes the receipt of the necessary regulatory and third-party approvals. &ldquo Our shareholders have given us a clear mandate,&rdquo said Eu. &ldquo We can now move forward with the next phase of our hospitality strategy &ndash (one that) creates a more focused and capital-efficient hospitality platform that retains our scale and recurring income base.&rdquo Frasers Property&rsquo s group chief financial officer Loo Choo Leong described the approval as an &ldquo important milestone&rdquo in the group&rsquo s capital allocation strategy. &ldquo The transaction unlocks capital from mature assets, enhances the group&rsquo s financial flexibility and gives us full ownership of Fraser Suites Singapore, facilitating the redevelopment of the wider Valley Point site,&rdquo he added. &ldquo Together, these outcomes position us to pursue value creation opportunities and improve long-term shareholder value.&rdquo Thai investment holding and real estate company TCC Assets, which holds more than 3.4 billion ordinary shares representing about 86.9 per cent of Frasers Property&rsquo s issued share capital, abstained from voting. The Thai group is an associate of business magnate Charoen Sirivadhanabhakdi and the estate of his late wife Khunying Wanna Sirivadhanabhakdi. Both are controlling shareholders and interested persons in relation to the resolution, Frasers Property noted. TCC Group Investments (TCCGI), which holds 70 million ordinary shares or 1.78 per cent of Frasers Property&rsquo s issued share capital, also abstained from voting. It is equally held by Charoen&rsquo s five children, two of whom are regarded as associates and interested persons. FHT was taken private in October 2025 through a trust scheme of arrangement. Its assets are currently held through two private sub-trusts: Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust. Frasers Property first announced in June the proposed revamp. It noted in an Aug 6 circular that the FHT properties will be split into four categories. The first is for mature, lower-yielding stabilised assets these have a total value of S$1.1 billion. Frasers Property will divest all of its 63.28 per cent stake in these assets to TCCGI. The second category involves assets with the potential to achieve higher yield via value-enhancement initiatives. Frasers Property will continue to retain an effective 49.95 per cent exposure in these assets, which are valued at S$0.4 billion. TCCGI will hold the remaining 50.05 per cent. The third is made up of non-core assets, valued at S$0.3 billion. These assets are effectively not transacted and will continue to be held under FHT or the New AU Trust for future opportunistic divestment. The fourth category is the asset for potential redevelopment, valued at S$0.3 billion, which will be divested to Frasers Property to enable the redevelopment of the whole site on which Valley Point is situated. On a pro forma FY2025 basis, the group expects the optimisation to raise its earnings per share by 3.4 per cent, its net asset value per share by 1.3 per cent and its return on equity by 0.1 percentage point. Net gearing is expected to fall 3.3 percentage points after the transaction is completed. Shares of Frasers Property fell 1 per cent or S$0.01 to close at S$1.01 on Friday, before the shareholders&rsquo approval was announced. |
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Joelton
Supreme |
12-Aug-2026 11:35
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Frasers Property&rsquo s net gearing falls slightly to 93.6% in 3QFY2026 Frasers Property&rsquo s (FPL) net debt over total equity stands at 93.6% as at June 30, down from 94.2% as at March 31. According to its business update for 3QFY2026 ended June 30, FPL&rsquo s net debt over property assets climbed to 44.9% at the end of the period, down slightly from 45.5% as at March 31. This includes net debt of consolidated Singapore-listed REITs. Total debt stands just under $18.1 billion. Cash and bank balances fell to $2 billion as at June 30, down from $2.4 billion at Sept 30, 2025. Pre-sold revenue stands at $1 billion as at June 30, down from $1.4 billion at Sept 30, 2025. There remains some $914 million of debt due in FY2026 ending Sept 30, and just under $4.6 billion in debt due in FY2027. This includes debt from FPL&rsquo s listed REITs. FPL says in its latest business update released Aug 11 that it is &ldquo well-positioned to repay and/or refinance debt&rdquo . Residential FPL&rsquo s total unrecognised revenue in its residential segment fell to $1 billion as at June 30, down from $1.4 billion as at Sept 30, 2025. Within its four core markets, it has 984 contracts on hand in Singapore worth some $400 million, 1,415 contracts on hand in Australia worth some $500 million, 126 contracts on hand in Thailand worth some $30 million and 178 contracts on hand in China worth some $100 million. The figure for Thailand excludes assets at One Bangkok. In Singapore, FPL&rsquo s unrecognised revenue is underpinned by two launched projects. Earnings visibility is supported by sales at Dunearn House, with 56% of 380 units sold during launch weekend on July 25, alongside additional pipeline from two government land sales (GLS) sites: Kallang Close, secured in April and Bayshore Drive, secured in July. FPL has a 33.3% effective stake in Dunearn House. Meanwhile, FPL and Mitsubishi Estate secured the Kallang Close GLS site with a $610.75 million bid. The site can potentially yield about 470 private homes, alongside a childcare centre. FPL, Frasers Centrepoint Trust, Sunway MCL, Sekisui House and Lum Chang Building Contractors secured the Bayshore Drive mixed-use GLS site with a $2.1 billion bid, and the site is expected to yield up to 1,280 residential units and 22,500 sqm of commercial area. Over in Australia, FPL reports stable unrecognised revenue despite fewer contracts on hand the real estate giant had reported 1,490 contracts on hand in the market as at March 31 worth $500 million. This reflects softer market conditions amid higher interest rates, says FPL on Aug 11. New projects and staged launches across land projects in key markets continue to support FPL&rsquo s earnings visibility in Australia. Industrial and logistics FPL&rsquo s industrial and logistics segment added some 68,300 sqm of landbank over 9MFY2025 ended June 30. Its industrial and logistics pipeline, including those delivered so far this financial year, stands at 1,097,369 sqm. Rental reversion is positive across its industrial and logistics assets in Australia, the European Union and Thailand, with weighted average lease expiry (WALE) of 5.3, 4.6 and 2.9 years respectively. Retail Rental reversion was positive across FPL&rsquo s Singapore, Australia and Thailand retail assets. In Singapore, occupancy and rental reversion remained healthy, supported by continued leasing momentum, says FPL. Hougang Mall&rsquo s asset enhancement initiative (AEI) is 99% committed ahead of its September completion, while space in the first phase of NEX&rsquo s AEI has achieved 87% pre-commitment to date. Commercial Rental reversion was positive across FPL&rsquo s Singapore, Australia, Thailand, Vietnam and UK commercial assets, with the most renewals and new leases coming from Thailand during 9MFY2026. Hospitality Revenue per available room (RevPAR) among FPL&rsquo s Asia-Pacific excluding Thailand hospitality properties fell 7.3% y-o-y to $151.80 during 3QFY2026. RevPAR fell on softer average daily rate (ADR) in China and Malaysia, the ramp-up of Frasers House in Singapore following an operator change and the May 2025 deflagging of Fraser Place Robertson Walk, partly offset by stronger performance in Japan and Australia, says FPL. Within Thailand, FPL&rsquo s hospitality properties saw RevPAR fall 8.8% y-o-y to $102.10 during 3QFY2026. In Europe, Middle East and Africa (EMEA), FPL&rsquo s hospitality properties saw RevPAR rise 3.2% y-o-y to $184.50 during 3QFY2026. Shares in FPL closed at $1.05 on Aug 11, down some 7% year to date. |
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Joelton
Supreme |
18-Jul-2026 13:29
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Frasers Property Industrial CEO Reini Otter to step down and join ESR Ian Barter named interim leader [SINGAPORE] Frasers Property : TQ5 0% announced on Friday (Jul 17) that the CEO of its industrial and logistics arm, Frasers Property Industrial, is set to step down on Dec 17. Reini Otter, 55, will be leaving to &ldquo take on a new career opportunity&rdquo , Frasers Property said, after a 28-year tenure with the group, including the last seven years as CEO of Frasers Property Industrial. Otter will be joining Asia-Pacific-focused real asset owner and manager ESR as CEO of its Australia and New Zealand business. There, he will support the delivery of ESR&rsquo s fund management and development platform in logistics real estate and data centres, ESR said in a press statement on Friday. Ian Barter, the business unit&rsquo s managing director for Australia, will assume interim leadership oversight for both the Australia and Europe portfolios effective Aug 1, until a permanent successor is appointed. Barter and the Frasers Property Industrial management team will report to the unit&rsquo s executive committee, and directly to the exco deputy chair Rod Fehring. The board stated that it has already initiated a search process for a permanent CEO and will update the market in due course. Panote Sirivadhanabhakdi, group CEO of Frasers Property, said that the group&rsquo s &ldquo strategy is unchanged&rdquo despite the transition. |
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Joelton
Supreme |
06-Jul-2026 09:33
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Frasers Property&rsquo s big asset shuffle: Controlling shareholder helping it drive value and stay listed [SINGAPORE] When Frasers Property (FPL) made its first offer for Frasers Hospitality Trust (FHT) back in 2022, this column suggested that the group ought to consider organising a privatisation deal for itself too. After reading the recently announced optimisation plan for the properties held under FHT &ndash which FPL succeeded in taking private on its second attempt last year &ndash it seems that the group&rsquo s controlling shareholder is more interested in improving the market value of the Singapore-listed property developer than taking it private. That is not a bad thing, of course &ndash but it could mean that investors will be left waiting a long time for the latent value within FPL to be fully realised. Under the proposed optimisation plan, certain legacy arrangements put in place to support FHT&rsquo s listing will be reversed and FHT&rsquo s interest in S$2.1 billion worth of hospitality assets will be shuffled between FPL and TCC Group Investments (TCCGI), which currently hold 63.3 per cent and 36.7 per cent of FHT&rsquo s stapled securities, respectively. A group of mature hospitality assets worth S$1.1 billion will end up being fully owned by TCCGI, while FPL will have full ownership of Frasers Suites Singapore, an asset worth more than S$300 million. &ldquo Full ownership of Fraser Suites Singapore will enable the group to pursue potential redevelopment of the entire Valley Point site, providing further opportunities for value creation over the longer term,&rdquo FPL said. TCCGI will also have a more than 50 per cent interest in S$400 million worth of hospitality assets that have the potential to achieve higher yields through value enhancement initiatives, with FPL holding the balance. FPL and TCCGI will maintain their existing interests in a further S$300 million worth of assets that have been classified as &ldquo non-core&rdquo and earmarked for eventual sale. FPL said it expects to receive S$177.9 million in cash from the various divestments and acquisitions under the optimisation plan. After footing S$78.4 million in fees, stamp duties and other taxes, the group figures it will rake in net proceeds of S$99.5 million. Controlling shareholder support For some market watchers, the most significant element of the optimisation plan is the potential redevelopment of Valley Point. For others, it is the fact that FPL will continue to earn recurring income from the hospitality assets it is offloading to TCCGI. FPL said its balance sheet exposure to hospitality assets will decline from approximately S$3.7 billion to S$2.5 billion, but its assets under management will be maintained at S$4.2 billion. For me, the most interesting aspect of the optimisation plan is that FPL&rsquo s controlling shareholder is lending its support to the public-listed group without any obvious direct benefit to itself. TCCGI is linked to the family of Thai billionaire Charoen Sirivadhanabhakdi, which also holds 86.9 per cent of FPL through an entity called TCC Assets. In effect, FPL&rsquo s controlling shareholder is taking full ownership of the most fully priced properties under the privatised FHT, and increasing its stake in the ones that may require capital for asset enhancement initiatives. As my colleague Jude Chan explained in his analysis of the optimisation plan, there was limited interest in FHT&rsquo s properties from third party investors. If TCCGI had not stepped in, FPL might have been forced to settle for lower valuations or give up the management of the assets. FPL said the negotiated transaction price for each of the assets under the optimisation plan was the higher of their latest independent valuation or their implied valuation when FHT was taken private. Of the five mature assets worth S$1.1 billion that TCCGI will fully own, four of them are being priced at their implied take-private valuations and above their latest independent valuations. On a portfolio basis, the negotiated transaction prices of the assets FPL is offloading in full or in part to TCCGI are either 6.7 per cent above their latest independent valuations, or 1.6 per cent above their implied take-private valuations. Meanwhile, FPL is acquiring Frasers Suites Singapore at its latest independent valuation of S$320 million, which is less than 0.7 per cent above the implied take-private valuation of S$317.9 million. Some market watchers have suggested to me that TCCGI&rsquo s support of FPL is not all that remarkable, given that it owns almost all of the listed company&rsquo s shares. By lightening FPL&rsquo s balance sheet and putting it in a position to redevelop Valley Point, TCCGI may enable the group to improve its profitability, lift the market value of shares, and perhaps widen its free float too. Yet, after a fillip when the optimisation plan was announced, FPL&rsquo s shares have drifted back down. They closed on Friday (Jul 3) at S$1.07, unchanged from their last close before the announcement, and just 0.45 times the company&rsquo s net asset value (NAV) of S$2.40 per share. What will it take for FPL to meaningfully boost the market value of its shares? Why are they trading so far below the company&rsquo s book value in the first place? Unjustifiably low valuation Much like other major Singapore-listed real estate groups, FPL&rsquo s return on equity has sagged over the years, and weighed on the market valuation of its shares. Unlike its best known peers, however, FPL&rsquo s shares have not rerated significantly amid the excitement about the revitalisation of the Singapore market. During the 12-month period up to the day before the optimisation plan was announced, FPL delivered a total return of 31.7 per cent. City Developments Ltd and UOL Group returned 63.7 per cent and 61.3 per cent over, respectively. The Straits Times Index returned 39.7 per cent during the same period. Some analysts think FPL is now trading at an unjustifiably low valuation, and that its shares could rise significantly in the months ahead. In a report in April, DBS Group Research said it expects resilient performance across FPL&rsquo s businesses, and that the redevelopment of Valley Point and Centrepoint could lift its revalued NAV (RNAV) by S$0.53 per share &ndash which is nearly half the current market value of its shares. Yet, the research house&rsquo s target price for the stock is only S$1.50 &ndash or just 0.54 times its estimate of FPL&rsquo s RNAV of S$2.80 per share. The way I see it, this reflects a lingering lack of enthusiasm in the market for property developers as new technologies and shifting preferences cloud the long-term outlook for commercial real estate. For instance, e-commerce has been reshaping demand for retail and dining spaces for years. The rise of artificial intelligence and remote work are also making the long-term outlook for traditional office spaces harder to discern. This column has also argued in the past that the residential property development sector is in need of reform, given the negative externalities it is creating for society. To be clear, I am not suggesting that FPL and its peers are not adapting to change. But they are not doing so with the intensity and scale that is likely to excite public investors, in my view. FPL may well be about to enhance its underlying value significantly with the backing of its controlling shareholder, but it is not clear how quickly and to what extent this will be reflected in the market value of its exceedingly depressed stock. |
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Joelton
Supreme |
03-Jul-2026 10:22
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Frasers Property said to be nearing deal for Cuppage Terrace [SINGAPORE] Frasers Property is said to be close to inking a deal to buy Cuppage Terrace, a row of 17 conservation shophouses off Orchard Road next to The Centrepoint. The price is understood to be somewhere between S$175 million and S$180 million. Cuppage Terrace is on a 28,986 square foot site with about 61 years and nine months&rsquo balance lease. Clinching Cuppage Terrace will further enlarge Frasers Property&rsquo s presence in the locale, ahead of the group&rsquo s plans for a potential redevelopment of the stretch that will also include the front and rear blocks of The Centrepoint and 51 Cuppage Road, a 10-storey office building directly connected to The Centrepoint&rsquo s rear block via a link-bridge. Cuppage Terrace, which Frasers Property is expected to bag soon, directly faces The Centrepoint&rsquo s rear block, which Frasers Property recently bought out through a S$391.9 million collective sale. Cuppage Terrace has about 50,891 sq ft of total lettable area, including outdoor refreshment areas which span more than 12,000 sq ft. Outdoor refreshment areas Based on the asset&rsquo s gross floor area (which excludes the outdoor refreshment areas) of nearly 35,000 sq ft, the price is expected to work out to about S$5,000 per square foot. Raj Kumar&rsquo s Royal Holdings Organisation owns Cuppage Terrace, which has food and beverage outlets on the ground floor and hotel rooms above. The asset has a 85 m road frontage along Cuppage Road. CBRE conducted an expression of interest exercise to find a buyer for Cuppage Terrace that closed on Feb 12. In late February, Frasers Property was awarded the collective sale tender for the rear block of The Centrepoint, comprising retail space and apartments on an L-shaped plot with about 52 years left on its 99-year lease. The collective sale is pending approval by the Strata Titles Board. Before the collective sale, Frasers Property already owned part of the rear block. It held all the 66 strata retail units and eight out of the 66 apartments, adding up to about 52 per cent of the strata area and about 85 per cent of the share value in the rear block. In the freehold front block, where The Centrepoint&rsquo s remaining 151 retail strata units are located, Frasers Property owns about 96 per cent each of the strata area and the share value. Last week, the Singapore-listed property group controlled by the family of Thai billionaire Charoen Sirivadhanabhakdi, unveiled plans to restructure the portfolio of assets under Frasers Hospitality Trust, which was privatised last year. |
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Joelton
Supreme |
03-Jul-2026 10:13
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Soon Su Lin to step down as Frasers Property Singapore CEO Tan Wee Hsien named successor [SINGAPORE] Soon Su Lin will step down as the CEO of Frasers Property : TQ5 +0.94% Singapore on Oct 1, 2026, transitioning to a group advisory role, the property group announced in a bourse filing on Friday (Jul 3). She will be succeeded by Tan Wee Hsien, 55, who is scheduled to join the company as CEO designate on Sep 8 this year. Following this planned succession process, Soon, 66, will serve as an adviser to support group CEO Panote Sirivadhanabhakdi. While relinquishing her role as the head of the Singapore business, she will continue to serve as a director on the boards of One Bangkok Co and Frasers Centrepoint Asset Management, which manages the Frasers Centrepoint Trust. Soon has been with the Frasers Property Group for over nine years and has led the Singapore operations since 2022. Incoming CEO Tan will bring three decades of Asia Pacific real estate experience to the role. Tan is currently with CapitaLand Development, where he is the CEO for Vietnam and International. Based in Singapore, he will report to Sirivadhanabhakdi and oversee the strategic direction, investments, operations, and development management of Frasers Property&rsquo s retail, commercial, residential, and mixed-use portfolio in Singapore. Shares of Frasers Property ended at S$1.07, S$0.01 or 0.9 per cent higher on Thursday. |
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Joelton
Supreme |
27-Jun-2026 11:27
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Frasers Property looks to enhance EPS, ROE and NAV with cash infusion from TCCGI After taking Frasers Hospitality Trust (FHT) private in September last year, Frasers Property (FPL) has announced a transaction to lighten its balance sheet. FHT owned 14 assets, which FPL acquired as part of the privatisation. To unlock capital, of these 14, five will be divested to TCC Group Investments (TCCGI, the major shareholder of FPL) four will undergo asset enhancement initiatives (AEI) as assets with potential a further four &mdash in Australia, the UK and Germany &mdash will be warehoused for divestment. One asset, Fraser Suites Singapore, which is part of the Valley Point site, is likely to be earmarked for redevelopment. This new ownership structure will be accretive to earnings per share (EPS), net asset value (NAV) and return on equity (ROE), and will lower net gearing. According to a press release, the pro forma FY2025 EPS rises by 3.4%, NAV rises by 1.3% and ROE gains 0.1 percentage point (ppt), while net gearing is reduced by 3.3 ppts. &ldquo In relation to our commitment to FHT as a platform, we are not shifting away from hospitality we are increasing our focus on delivering quality service. This is a capital-efficient structure to lighten our balance sheet. The AUM (assets under management) has not changed. We have plans to grow AUM with better capital efficiency, and hospitality is and will remain an integral part,&rdquo says Loo Choo Leong, group CFO, FPL. &lsquo Positive&rsquo transaction According to Loo, this transaction delivers positive EPS, ROE and NAV, and lowers net gearing opens up the possibility of future value creation with the redevelopment of the Valley Point site and the benefit will accrue to all shareholders improves capital efficiency and is at 6.7% above independent valuation and 1.7% above the take-private valuation of FHT. TCCGI bears the brunt of higher valuations. The five stabilised properties TCCGI is acquiring (subject to shareholders&rsquo vote at an EGM) are valued at $1.07 billion, which is higher than their latest valuation. This compares with the four properties earmarked for AEI, valued at $389.1 million, and the for-sale assets of $344.8 million. The transaction requires approval at an EGM, where only independent shareholders of FPL can vote. When asked whether there was a tender process for the portfolio, Kelvin Tan, head of real estate M& A at DBS, the financial adviser to FPL, says: &ldquo We were requested by the board as additional safeguards to do a discreet market check with several parties to assess whether there are similar interests in acquiring the portfolio. Of the parties that we approached, none of them expressed interest in the portfolio, given FPL&rsquo s pricing expectations and on condition FPL continues to manage the assets and earn management fees.&rdquo It is notable that FHT&rsquo s portfolio is being transacted 1.7% above its full valuation when FPL acquired it in September 2025. In fact, market-watchers have noted that the geopolitical environment has deteriorated since FHT was privatised, with inflation prompting the Reserve Bank of Australia to raise interest rates. &ldquo The parties that were mentioned by our financial advisors on why they didn&rsquo t take up the portfolio &mdash it&rsquo s not because our assets are not good, or that us managing the portfolio is not good. It&rsquo s just that [the valuations] don&rsquo t meet their minimum hurdle rates from what they would want from acquisitions, as well as align with their strategy of how they manage their assets. It is by no means an indication of the attractiveness of our assets,&rdquo Loo explains. Indeed, the parties approached would not have management control, as FPL continues to manage the assets. &ldquo From this perspective, that was something third parties just didn&rsquo t find that interesting based on their own hurdle rates and internal requirements. From this process, it really reinforces that this transaction with TCCGI represents the best available pricing outcome for FPL shareholders,&rdquo Tan says. TCCGI sees value in these assets and it is the largest shareholder of FPL. So whatever benefits accrued to FPL from the assets earmarked for AEI, and those warehoused for sale, will also accrue to TCCGI. In addition, as a family office, TCCGI, unlike investors in the public market, represents patient capital and can hold stabilised assets for a longer period. Slated for divestment The properties warehoused for sale are Novotel Melbourne, along with two others in the UK and one in Dresden. &ldquo Novotel Melbourne is planned for future opportunistic divestment. We want to do it in a measured and calibrated manner we do not want to be pressured because it could be a long haul,&rdquo notes Eu Chin Fen, CEO of Frasers Hospitality. She adds that she is looking at a timeline of around 24 months to divest the assets warehoused for divestment. The most interesting part of the transaction is the full ownership of Valley Point following FPL&rsquo s acquisition of Frasers Suites Singapore from the privatisation of FHT. Full ownership of Frasers Suites Singapore, valued at $320 million, will enable FPL to to pursue the potential redevelopment of the entire Valley Point site, providing further opportunities for value creation over the longer term. Following completion, FPL&rsquo s on-balance-sheet hospitality assets are expected to decrease from approximately $3.7 billion to $2.5 billion, while AUM remains at $4.2 billion. Frasers Property will continue to generate recurring income through its operating capabilities across the portfolio. |
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Joelton
Supreme |
26-Jun-2026 09:20
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Valley Point could be the hidden gem in Frasers Property&rsquo s S$2.1 billion hospitality &lsquo asset-light&rsquo proposal [SINGAPORE] Real estate giant Frasers Property&rsquo s strategic review, which has dragged on for well over two years, has finally culminated in a S$2.1 billion game of asset musical chairs. Controlled by the family of Thai billionaire Charoen Sirivadhanabhakdi, the Singapore-listed property developer on Thursday (Jun 25) unveiled a &ldquo portfolio optimisation&rdquo plan that builds on its 2025 privatisation of Frasers Hospitality Trust (FHT). Broadly, the optimisation will see FHT&rsquo s assets separated into four groups.
The restructuring will reverse certain legacy arrangements previously put in place for FHT&rsquo s listing. These include the removal of minimum fixed rental and corporate guarantee obligations by Frasers Property. The deal will be transacted with TCC Group Investments (TCCGI), the parent company of Frasers Property, at about a 6.7 per cent premium to the latest independent valuation conducted on Apr 30. It is also 1.6 per cent above Frasers&rsquo implied take-private price of S$0.71 per stapled security of FHT last year. It is perhaps worth recalling that Frasers&rsquo first attempt to take FHT private back in September 2022 missed by a whisker. Some 74.88 per cent of unitholders voted in favour of the S$0.70 per stapled security offer &ndash falling short of the required 75 per cent approval. It waited three years to return with the slightly sweeter offer in 2025. That second attempt succeeded, setting the stage for today&rsquo s grand reshuffle. &ldquo Following the privatisation of Frasers Hospitality Trust in 2025, we conducted a comprehensive review of the hospitality portfolio and reached clear conclusions on how each asset is best managed going forward,&rdquo said Eu Chin Fen, CEO of Frasers Hospitality. &ldquo The proposed FHT portfolio optimisation is the outcome of that review, which strengthens our platform while we continue to drive performance through our operating capabilities,&rdquo she added. Closed-door snub But, during the media briefing on Thursday, a telling detail emerged regarding why this deal is being conducted as an interested person transaction with TCCGI. Frasers&rsquo financial advisers on the deal admitted that they quietly shopped the portfolio around to external third parties. But the result was a total snub. Outside buyers did not bite for two clear reasons. First, they felt the asset valuations were far too full. Second, Frasers insisted on a strict precondition: the group must retain the long-term management rights to the hotels. It comes as no surprise that independent global funds have zero desire to pay top dollar for a physical property while letting the seller walk away with the operational cream. TCCGI is essentially stepping in to buy what the open market found unpalatable, providing execution certainty because they are the only buyer willing to accept Frasers&rsquo terms. Stopping the balance sheet bleed Absorbing FHT in 2025 pushed its net gearing to an uncomfortable 89.2 per cent &ndash and to 94.2 per cent by the first half of its FY2026 ending September. And the market has long punished Frasers Property for its bloated balance sheet. The stock is trading at less than half of its net asset value. It was a heavy, capital-intensive weight that dampened investor sentiment. Today&rsquo s transaction acts as a much-needed tourniquet. &ldquo This is a capital structure transaction that lightens our balance sheet,&rdquo said Loo Choo Leong, group chief financial officer of Frasers Property, at the media briefing. &ldquo It is a more capital-efficient structure, which will mean a lighter balance sheet for the group in general. That&rsquo s the target,&rdquo he added. By engineering an &ldquo asset-light&rdquo pivot, Frasers is dropping the physical assets while retaining the lucrative management fees. At first glance, slicing on-balance-sheet hospitality assets from S$3.7 billion down to S$2.5 billion might give the impression of a company eager to shed its hotel portfolio. But Loo is quick to dismiss this. &ldquo Hospitality is and will remain a key integral part of Frasers Property,&rdquo he said. &ldquo We&rsquo re not shifting our eyes away from (hospitality). In fact, we are increasing our focus on ensuring that we deliver quality hospitality products and services to our customers.&rdquo For now, Frasers&rsquo hospitality assets under management stay flat at S$4.2 billion. The group will continue to run the hotels and collect steady fee income. And the immediate result is that net gearing ticks down by 3.3 percentage points, offering some breathing room. Heavy cost of moving money On the face of it, the headline numbers look crisp: debt drops, and the transaction happens at a 6.7 per cent premium over the latest independent property valuations. But the real story lives in the dense pages of the legal bourse filing, where that glossy corporate veneer begins to crack. That celebrated 3.4 per cent boost to earnings per share (EPS) relies entirely on one-off divestment gains. Before factoring in fair value changes and exceptional items, the transaction results in a core EPS dilution of 6.9 per cent because of lower attributable operating income. Furthermore, shifting assets from one pocket of a billionaire&rsquo s empire to another is an expensive hobby. Frasers expects to receive S$177.9 million in cash from the net difference between its acquisitions and disposals. Yet, the total transaction cost sits at a staggering S$78.4 million due to stamp duties and capital gains taxes. By the time the tax collectors take their cuts, the net cash proceeds dwindle to just S$99.5 million. Paying S$78.4 million in friction costs just to move assets to a sister company is a steep price to pay for corporate housekeeping. Valley Point clincher But experts in Singapore&rsquo s property and real estate investment trust space do not appear to be too worried. &ldquo The transaction and structure looks reasonable and in line with recent market deals,&rdquo said RHB analyst Vijay Natarajan. &ldquo The move will lower gearing and provide clarity on redevelopment potential in the hospitality portfolio, while retaining the fee income from the assets.&rdquo &ldquo Markets have been typically rewarding an asset-light real estate business model that improves ROE (return on equity) and offers scale, and this transaction fits well with that approach.&rdquo But the real clincher of this S$2.1 billion game of musical chairs is not the fee income or the debt relief. It is a hidden local prize. As part of the deal, Frasers is shelling out to take 100 per cent ownership of Fraser Suites Singapore. On paper, it is a serviced residence valued at S$320 million. But, strategically, it gives the group the master key to the entire Valley Point site. Valley Point has long been a slightly sleepy, ageing fixture along River Valley Road. By unifying the ownership, Frasers gains complete flexibility to tear it down and start over. During the morning media briefing, management was noticeably coy when pressed about the specific number of residential units a redevelopment could yield. But the intent is clear. In a land-scarce market like Singapore, a prime plot in a prestigious district is worth its weight in gold. A full-scale redevelopment of Valley Point &ndash potentially adding shiny new luxury residences and a revamped retail podium &ndash offers a massive runway for long-term value creation. Ultimately, the asset-light pivot will help repair a stretched balance sheet and stop the financial bleeding. But financial engineering alone rarely excites the public market. Frasers wants retail investors to finally stop discounting its stock. And if this proposed deal goes through, the grand reveal after of what it actually plans to build at Valley Point could be the story that matters |
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Joelton
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26-Jun-2026 09:14
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Frasers Property proposes S$2.1 billion restructuring of hospitality portfolio [SINGAPORE] Real estate giant Frasers Property is proposing a S$2.1 billion optimisation of its Frasers Hospitality Trust (FHT) portfolio, marking the next stage of its hospitality strategy following the trust&rsquo s privatisation last year. &ldquo The proposed transaction is expected to reshape the group&rsquo s hospitality portfolio, enhance capital efficiency and deliver long-term shareholder value,&rdquo said the mainboard-listed group on Thursday (Jun 25). The restructuring will reverse certain legacy arrangements previously put in place for FHT&rsquo s listing. These include the removal of minimum fixed rental and corporate guarantee obligations by Frasers Property. The restructure will also bring FHT&rsquo s carved-out lease and reversionary interests under a single title ownership, simplifying its ownership structure. Doing so will give Frasers Property the flexibility to maximise the value of FHT&rsquo s assets and scale its hospitality platform. Additionally, the restructuring will allow FHT to stay invested in selected assets that offer opportunities for future value creation alongside TCC Group Investments (TCCGI), the parent company of Frasers Property and the existing co-owner of the FHT portfolio assets. TCCGI is controlled by Thai billionaire Charoen Sirivadhanabhakdi and his family. Broadly, the optimisation will see FHT&rsquo s assets separated into four groups:
The deal will be transacted with TCCGI at about a 6.7 per cent premium to the latest independent valuation conducted on Apr 30. It is also 1.6 per cent above the implied take-private price of S$0.71 per stapled security. Frasers Property said: &ldquo As TCCGI is the existing co-owner of the FHT portfolio assets, this provides strong execution certainty on the required terms.&rdquo Loo Choo Leong, the group chief financial officer of Frasers Property, added: &ldquo We have been disciplined in improving capital efficiency, lowering gearing and enhancing returns for the group&hellip (Optimisation) frees up capital for higher-returns opportunities while maintaining our recurring income base by co-investing alongside our capital partner.&rdquo Following the deal, Fraser Property&rsquo s on-balance sheet hospitality assets are expected to decrease from around S$3.7 billion to S$2.5 billion. Its assets under management will be maintained at S$4.2 billion. The group will continue to generate recurring income through its operating capabilities across the portfolio. On a pro forma FY2025 basis, the group expects earnings per share to rise 3.4 per cent, net asset value per share to increase 1.3 per cent and net gearing to fall by 3.3 percentage points following the completion of the transaction. The proposed portfolio optimisation remains subject to shareholder approval and other conditions, with completion expected before the end of FY2026 if approved. Shares of Frasers Property ended 1.9 per cent or S$0.02 higher at S$1.09 on Thursday. |
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Joelton
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21-May-2026 10:07
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Frasers sells retail complex in West Sydney to Vicinity Centres for A$400 million The sale is consistent with its capital recycling strategy, says Australian unit&rsquo s CEO [SINGAPORE] Frasers Property Australia is selling retail complex Eastern Creek Quarter (ECQ) in West Sydney, to Australian shopping centre operator Vicinity Centres for A$400 million (S$364 million). The sale is expected to complete on Jun 30. Cameron Leggatt, CEO of Frasers Property Australia, said: &ldquo Consistent with our capital recycling strategy, the successful sale of ECQ, positions us to pursue new opportunities in large-scale, mixed-use developments across our core eastern seaboard markets.&rdquo ECQ comprises three retail components: Stage 1 ECQ Shopping Centre with around 10,000 square metres (sq m) of gross lettable area (GLA) Stage 2 ECQ XL, a large-format retail and showroom precinct spanning about 11,000 sq m GLA and the recently opened outlet concept, which spans about 20,000 sq m GLA and houses around 100 brands. Stage 1 opened in 2020, followed by Stage 2 in 2022, while the outlet retail concept &ndash the first of its kind in Western Sydney &ndash opened in March this year. ECQ serves a catchment of around 1.2 million residents, offering outlet shopping alongside groceries, convenience retail, health and beauty services, dining and entertainment, said the company in a press statement on May 15. According to Mingtiandi, the ECQ sales campaign concluded ahead of its Jun 5 deadline after attracting strong interest from a broad mix of domestic and international investors, including private and institutional groups. Simon Rooney, CBRE&rsquo s head of retail capital markets, who brokered the deal for Frasers, told Mingtiandi that outlet malls are tightly held assets that rarely come to market. The sale of ECQ comes after it divested its built-to-rent development, Brunswick & Co, in Queensland, for a reported A$285 million, as well as Burwood Brickworks Shopping Centre in Victoria in April this year. Last October, Frasers sold its Australian energy retailing business, Real Utilities, to Active Utilities for A$30 million. Most recently, the group launched the sale of shopping mall Ed Square Town Centre for A$250 million, alongside a portfolio of five Melbourne industrial assets last valued at a combined S$218.9 million. Frasers Property&rsquo s Australia arm posted S$34.6 million in profit before interest, fair-value changes, tax and exceptional items for H1 FY2026, compared with S$7.5 million a year earlier, driven by stronger residential settlements and land sales. Investment earnings for the segment rose 13.5 per cent on the year to S$14.3 million, following the completion of Mambourin Retail in September 2025, while Rhodes Quarter delivered steady performance through leasing and asset management initiatives. Looking ahead, Frasers Property had said it will continue to unlock value with its capital recycling and capital partnership activities. |
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Delvyss
Elite |
13-May-2026 14:04
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Frasers Property Limited (FPL) 1HFY26 Results: Strong Residential & I& L Growth, Add Rating with S$1.41 Target Price | 2026 Singapore Property Stock Analysishttps://www.minichart.com.sg/2026/05/12/frasers-property-limited-fpl-1hfy26-results-strong-residential-il-growth-add-rating-with-s1-41-target-price-2026-singapore-property-stock-analysis/ |
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Joelton
Supreme |
09-May-2026 09:42
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Frasers Property' s attributable profit for 1HFY2026 down 37.8% y-o-y Frasers Property' s attributable profit for its 1HFY2026 ended Maych 31 is down 37.8% y-o-y to $88.4 million, weighed down by an impairment of $38 .2 million made for an investment in Thailand. If a one-off tax provision reversal in 1HFY2025 was excluded, attributable profit would have increased 77% y-o-y. In the same half year ended March 31, Frasers Property' s PBIT was up 13.2% to $678.7 million, driven by residential projects in Singapore, Australia and China, industrial estate land sales in Thailand, non-core land sales in Australia. The company enjoyed higher retail contribution as well, with the increased stake in Northpoint City South Wing in May 2025. Revenue was down 5.2% y-o-y to $1.51 billion. " We remain firmly on strategy, with continued focus on delivery amid the uncertain operating environment," says group CEO Panote Sirivadhanabhakdi. " Our integrated investor - developer - operator model positions us to create, sustain and unlock value at every stage." The company has made " progress" on multiple fronts: growing the development pipeline, active asset management sustaining recurring income quality, and capital recycling across markets, he adds. For one, the collective sale award for the leasehold rear plot of The Centrepoint also opens " exciting possibilities" to unlock further value from this prime asset along Orchard Road. As at March 31, the company' s net asset value was $2.40 per share, versus $2.37 as at Sept 30, 2025. Its net debt to property assets ratio as at March 31 was 45.5%, up slightly from 43.7% as at Sept 30, 2025. Net debt to total equity, meanwhile, was 94.2%, up from 89.2%, partly due to the redemption of perpetual securities in January this year. Some 69.4% of its total debt was on fixed rates or hedged, with a weighted average debt maturity of 2.5 years and blended cost of debt of 3.8% per annum. Frasers Property shares closed at $1.14, up 0.88% year to date. |
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Delvyss
Elite |
29-Apr-2026 09:46
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Investors beginning to find value here | ||
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mrwise
Supreme |
28-Apr-2026 16:17
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Coming! looks like some movement up... hope to close at $1.18 today!! tomorrow may go higher than $1.25? |
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mrwise
Supreme |
28-Apr-2026 16:00
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Final chance to ride on before the burst up towards $2!!
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Delvyss
Elite |
28-Apr-2026 15:51
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Can observe how the once under-rated and " unnoticed" Guocoland moved from $1.35 in Apr 2025 to $2.91 this Feb 2026 | ||
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mrwise
Supreme |
28-Apr-2026 15:26
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Maybe time to delist at good price!! Target at $2 and above!! what a great deal now. Just don' t missed this chance again.... Check this out before it is too late! |
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Delvyss
Elite |
28-Apr-2026 15:12
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The Frasers have been going unnoticed for some time. | ||
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