SINGAPORE - Property developer Frasers Centrepoint looks set to go ahead with an establishment of a real estate investment trust (Reit) to hold its hotel assets.
The group said on Monday it will convene an extraordinary general meeting on May 28 to seek approval from its shareholders to inject its hospitality properties into Frasers Hospitality Trust (FHT).
FHT will initially hold six serviced residence properties injected by Frasers Centrepoint or its subsidiaries, as well as six hotels injected by Frasers Centrepoint's majority shareholder TCC Group.
The serviced residence properties are Fraser Suites Singapore, Fraser Suites Sydney, Fraser Place Canary Wharf, Fraser Suites Queens Gate, Fraser Suites Glasgow, and Fraser Suites Edinburgh.
Their total value, on a 75-year leasehold basis, is $620.4 million, Frasers Centrepoint said.
The six hotels to be injected by TCC Group are InterContinental Singapore, Novotel Rockford Darling Harbour, Park International London, Best Western Cromwell London, ANA Crowne Plaza Kobe and Westin Kuala Lumpur.
The trust will be a stapled trust comprising a Reit and a business trust, but the business trust will be dormant as at the date of FHT's listing, Frasers Centrepoint said.
"The group views Reits as the right platform to efficiently hold long-term assets and deliver a valuable, fee-based funds management business," said Frasers Centrepoint's group chief executive Lim Ee Seng.
He added that the group has a successful track record of sponsoring and managing its two existing Reits - Frasers Centrepoint Trust and Frasers Commercial Trust - and "will continue to apply our proven Reit management skills to FHT".