Singapore's Frasers Property to take hospitality trust private

Frasers Property

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;))