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

Singapore-listed stapled security, Frasers Hospitality Trust (FHT) (SGX:ACV), has completed a private placement of 150 million new stapled securities raising gross proceeds of SGD123.0 million, the trust announced on 26 June.

The exercise was undertaken to partly finance the acquisition of Sofitel Sydney Wentworth. “The private placement of 150,000,000 new stapled securities was priced at the top end of the price range at SGD0.820 per stapled security”, said FHT.

TCC Hospitality Limited has subscribed for 59,340,000 new units while book demand for the remaining 90,660,000 new units was two times over-subscribed, on the back of strong demand from existing stapled security holders and new long-only investors, said FHT.

The book closed within two hours of the launch of the private placement, with the issue price coming in a tight discount of 1.8% to FHT’s adjusted volume weighted average price of SGD0.8348 per stapled security.

“Investors’ strong demand for the placement exercise indicates their support for FHT’s investment strategy”, said Eu Chin Fen, CEO for FHT’s manager who added that Sydney has proven to be a favourable hospitality market. “The acquisition of Sofitel Sydney Wentworth will strengthen our portfolio and enhance returns to our stapled securityholders”, she said.

Units of FCT last changed hands on the SGX at SGD0.85.

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.