Frasers Commercial Trust's China Square (Photo: REITsWeek)

Shares of Singapore-listed Frasers Centrepoint Limited were suspended for several hours on 9 May as news of on an impending REIT, said to feature the property developer’s industrial assets in Australia, re-surfaced in local media.

The suspension was requested about half an hour into the trading session after an article titled “Heading for SGX this June could be a SGD900 million Frasers REIT” was published in Singapore’s Business Times.

The company had earlier confirmed as early as February 2016 that it was already exploring the possibility of listing a REIT on the Singapore Exchange that could include its Australian industrial properties.

In a statement after trading was suspended, Frasers Centrepoint Limited clarified that although applications have been made to the Singapore Exchange and Monetary Authority of Singapore, the proposed initial public offering of the REIT is still subject to market conditions.

“The company wishes to reiterate that no decision has been made as to whether the transaction will take place and there is currently no certainty that the company will proceed with the offering”, it said in the statement, adding that an announcement will be made should there be further material developments.

“In the meantime, investors and shareholders of the company are advised to refrain from taking any action in respect of their securities in or issued by the company which may be prejudicial to their interests, and to exercise caution when dealing with the securities of the company”, it cautioned.

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

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.