Frasers Property is proposing a restructuring of its hospitality portfolio involving about S$2.1 billion (US$1.6 billion) of assets.
The multinational real estate company is looking to sell its 63.28 per cent stake in five of its properties to TCC Group Investments Limited (TCCGI), the existing co-owner of Frasers Hospitality Trust’s (FHT) portfolio, Frasers Property announced on Thursday (Jun 25).
TCCGI, a Thai investment and holding company, currently owns a 36.72 per cent stake in Frasers Hospitality Trust.
The five hotels are “stabilised” assets with lower yield and a total value of S$1.1 billion.They are: Frasers House in Singapore, The Westin Kuala Lumpur in Malaysia, Fraser Suites Queens Gate London and Fraser Suites Edinburgh in the UK, and ANA Crowne Plaza Kobe with Koto No Hako in Japan.
The group’s hospitality portfolio would also be further categorised: four properties have been categorised as assets with potential, valued at S$0.4 billion.
These properties – Novotel Sydney Darling Square and Fraser Suites Sydney in Australia, and Capri by Fraser Kensington and ibis Styles London in the UK – have the potential to achieve higher yield.
Following the proposed portfolio restructuring, Frasers Property will continue to retain an effective 49.95 per cent exposure to these assets, while TCCGI will hold 50.05 per cent.
Four other properties across Australia, Germany and the UK, valued at S$0.3 billion, are categorised as non-core assets, to be held for future “opportunistic divestment”.
They are: Novotel Melbourne on Collins in Australia, Maritim Hotel Dresden in Germany, Fraser Place Canary Wharf and Fraser Suites Glasgow in the UK.
Following the transaction, Frasers Property will continue to earn asset management fees from the stabilised assets, assets with potential and the non-core assets.
Fraser Suites Singapore is classified as an asset for potential redevelopment.
The asset is valued at S$0.3 billion, and will be 100 per cent owned by Frasers to enable any potential redevelopment of the whole site on which the development known as Valley Point is located.
Frasers Property said the move builds on the 2025 privatisation of Frasers Hospitality Trust, which gave the group greater flexibility over any restructuring of the ownership and management of the portfolio.
CNA
