Frasers Property Eyes Privatization of Hospitality REIT, Sources Say

Frasers Property is considering a privatization offer for its Singapore-listed hospitality real estate investment trust (REIT), Frasers Hospitality Trust, according to sources familiar with the matter.

Talks to take Frasers Hospitality Trust private are still in the early stages, and there’s no guarantee a deal will come together, the sources noted.

Listed on the Singapore Exchange’s mainboard since 2014, Frasers Hospitality Trust manages a portfolio of 14 properties, including eight hotels and six serviced residences across nine cities in Asia, Australia, and Europe.

The REIT has a market capitalization of S$1.27 billion (about US$972.4 million), with its portfolio valued at S$2.0 billion as of September 2024.

Its properties include notable assets like InterContinental Singapore, Fraser Suites Sydney, Novotel Melbourne on Collins, Fraser Suites Queens Gate London, and Park International London.

Frasers Property holds a 24.23% stake in the hospitality trust, while its majority shareholder, TCC Assets, owns a 36.72% stake in the REIT.

Frasers Property itself has a market capitalization of S$3.20 billion and managed assets worth approximately S$48.9 billion as of September 2024.

The company operates across multiple sectors, including hospitality, industrial and logistics parks, residential, retail, and commercial businesses.

It owns properties in over 70 cities across countries such as Australia, Vietnam, China, and the UK.

Last month, Frasers Hospitality Trust announced that its management was reviewing the trust’s business and exploring various strategic options.

In 2022, Frasers Property attempted to privatize the hospitality trust but failed to secure enough support from unit holders.

Shares of both Frasers Property and Frasers Hospitality Trust are currently on a trading halt.