The Sofitel Sydney Wentworth.The Sofitel Sydney Wentworth.

Singapore-listed Frasers Hospitality Trust will seek to list up to 150 million new stapled securities in a proposed private placement exercise.

The private placement is intended to raise funds for the acquisition of a 75-year leasehold of Australian hotel Sofitel Sydney Wentworth, according a circular issued to unitholders on 9 June.

A resolution to conduct the placement exercise, which will raise approximately SGD122.3 million, will be tabled at an extraordinary general meeting (EGM) on 24 June. Also being tabled for unitholder approval is the proposed acquisition of the 75-year leasehold and a leaseback scheme for the property.

Frasers Hospitality Trust first announced its plans to acquire the property in May 2015. The acquisition is expected to cost approximately AUD224 million (SGD235 million).

“The managers intend to allocate the entire net proceeds from the private placement for the purposes of the acquisition”, said Frasers Hospitality Trust in a circular issues to unitholders on 9 June.

Units of Frasers Hospitality Trust are currently listed on the Singapore Exchange at SGD0.86.

The Sofitel Sydney Wentworth.
The Sofitel Sydney Wentworth.

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.