Frasers Centrepoint proposes $520m investment in Thai industrial developer

Traffic moves past Frasers Centrepoint's The Centrepoint mall (centre) and OG Pte Ltd's Orchard Point mall (right) in Orchard Road during the evening rush hour.
Traffic moves past Frasers Centrepoint's The Centrepoint mall (centre) and OG Pte Ltd's Orchard Point mall (right) in Orchard Road during the evening rush hour.PHOTO: ST FILE

SINGAPORE - Mainboard-listed developer Frasers Centrepoint Ltd (FCL) has signed a conditional agreement to invest 13.23 billion baht (S$520 million) in Ticon Industrial Connection Public Company Ltd, an industrial property developer listed in Thailand.

FCL's wholly-owned unit, Frasers Property Holdings, is proposing to invest in Ticon via a private placement at a subscription price of 18 baht per share. This represents a premium of 5.9 per cent to Ticon's last closing price on Oct 3, and 13.6 per cent over its 30-day volume weighted average price.

When the transaction is completed, Frasers Property will hold around 40 per cent of Ticon's enlarged share capital.

FCL said the proposed investment would extend its exposure in Thailand from residential and commercial/hospitality mixed use developments to the industrial property asset class, and allow it to further grow overseas income.

Ticon has developed and built factories and warehouses in 18 industrial estates and 33 logistics locations in Thailand. It currently owns and manages approximately 2.5 million sq m of industrial space.

Ticon is also the sponsor of three listed property funds and a listed Reit in Thailand with combined assets under management of approximately 32.4 billion baht (about S$ 1.3 billion).