Singapore's Frasers Property to take hospitality trust private
13/06/2022 02:15
June 13 (Reuters) - Singaporean investment holding firm
Frasers Property FRPL.SI said on Monday it will take its
subsidiary, Frasers Hospitality Trust FRHO.SI , private in a
deal valuing the real estate investment trust (REIT) at S$1.35
billion ($970.46 million).
Frasers Property will buy shares of the REIT, which manages
hotels and serviced residences across Asia, Australia and
Europe, at S$0.70 apiece, a 6.1% premium to their last close.
Frasers Hospitality Trust is smaller in scale compared to
its peers in a market where scale and size are essential to
liquidity and growth, Frasers said, adding that its size has
limited its ability to reap the benefits of a continued listing.
It has also found it difficult to translate its property
acquisitions into higher distributions to unitholders, Frasers
added.
($1 = 1.3911 Singapore dollars)
(Reporting by Harshita Swaminathan)
((Harshita.Swaminathan@thomsonreuters.com;))