Frasers Hospitality Trust's Hotel Intercontinental Singapore.Frasers Hospitality Trust's Hotel Intercontinental Singapore.

Frasers Centrepoint Limited announced on 23 June that it has lodged a preliminary prospectus for the proposed listing of Frasers Hospitality Trust (FHT) with the Monetary Authority of Singapore.

FHT, which will be a stapled security comprising of Frasers Hospitality REIT and Frasers Hospitality Business Trust, will list with an initial portfolio of 12 properties consisting of six hotels and six serviced residences across Singapore, Australia, the United Kingdom, Japan and Malaysia.

The portfolio, which includes Intercontinental Singapore, The Westin Kuala Lumpur and ANA Crowne Plaza Kobe (see full list below), is valued at an aggrgrate of SGD1.658 billion (USD1.33 billion). FHT has billed itself as the largest global hospitality portfolio comprising hotels and serviced residences by number of rooms.

FHT plans to list 182 million units on the mainboard of the Singapore Exchange at a price of SGD0.88 per stapled security, raising approximately SGD160 million from the listing. Approximately 45 million units will be available in the public tranche while 136 million will be offered in the placement tranche, including reserved stapled securities, for institutional investors.

At the IPO price, FHT projects a yield of 7% per annum.

The IPO will be managed by joint underwriters and bookrunners DBS Bank Limited, Morgan Stanley Asia, Standard Chartered Securities and UOB Limited.

The initial properties:

Hotels InterContinental Singapore, Novotel Rockford Darling Harbour, Park International London, Best Western Cromwell London, ANA Crowne Plaza Kobe and Westin Kuala Lumpur and serviced residences Fraser Suites Singapore, Fraser Suites Sydney, Fraser Place Canary Wharf, Fraser Suites Queens Gate, Fraser Suites Glasgow, and Fraser Suites Edinburgh.

Frasers Hospitality Trust's Hotel Intercontinental Singapore.
Frasers Hospitality Trust's Hotel Intercontinental Singapore.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.