Frasers Hospitality Trust to raise upto $123m by selling 150m new stapled securities

SINGAPORE - The managers of Frasers Hospitality Trust have launched the private placement to finance the S$248 million acquisition of a 75-year leasehold interest in Sofitel Sydney Wentworth from sponsor Frasers Centerpoint Limited.

The 150 million new stapled securities will be at 81-82 Singapore cents apiece to raise gross proceeds of up to S$123 million, the company said in a release on Thursday.

The size of the offering is about 12.5 per cent of the existing issued units for the Trust.

TCC Hospitality, which currently holds a 39.56 per cent stake in Frasers Hospitality Trust, will take a proportionate stake of the offering securities to maintain its interest in the Trust.

DBS Bank, Morgan Stanley Asia, Standard Chartered Securities, and United Overseas Bank are the joint bookrunners and underwriters for the offering.