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Frasers Centrepoint Limited (SGX:TQ5) has confirmed in a statement that the company is exploring the possibility of listing a REIT on the Singapore Exchange that could include its Australian industrial properties.

The statement was issued in response to media reports from early February speculating that the Singapore-listed real estate company was considering another REIT listing.

“From time to time the company reviews strategic options available to enhance shareholder value and continually seeks opportunities to optimise and unlock value in its portfolio, including by way of injecting its real estate assets into the listed property trusts it manages or by establishing a new real estate investment trust”, it said in the statement.

“While the company is currently reviewing and exploring the proposal of establishing a REIT to be listed on the Main Board of Singapore Exchange Securities Trading Limited as one of the various strategic options available to the company to optimise and unlock value from its assets, including Australian industrial assets, there is no certainty that any transaction will result from such plans”, it said, adding that discussions are still ongoing.

The company has also said that it will be making announcements “in the event that there are any material developments”. “In the meantime, shareholders are advised to refrain from taking any action in respect of their shares in the company which may be prejudicial to their interests, and to exercise caution when dealing in the shares of the company”, it added.

Frasers Centrepoint Limited currently has a portfolio of two Singapore-listed REITs and one stapled security. These are namely office REIT Frasers Commercial Trust (SGX:ND8U), retail REIT Frasers Centrepoint Trust (SGX:J69U) and Frasers Hospitality Trust (SGX:ACV).

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.