Frasers Property (formerly: Frasers Cpt (FCL))

http://www.frasersproperty.com.au/NSW/Fairwater

First in at Fairwater


279 words
3 Nov 2015
St Marys Star
FSMARY

English

FRASERS Property Australia has just welcomed its first residents of its Fairwater masterplanned community as the evolution of western Sydney's newest address gathers momentum.
The first six families have moved into the community's completed homes on Fairwater Boulevard and are enjoying the benefits of the amenities, the picturesque surroundings and the convenient location.
Nigel Edgar, NSW general manager
Residential Division, Frasers Property Australia, said the homes at Fairwater have struck a chord with buyers.
"Australians today live different lives from those of previous generations so our homes must respond to new demands and enable new lifestyles," he said.
Fairwater is appealing to first-home buyers, investors and owner occupiers.
"Fairwater homes tick all boxes in terms of size and proximity to shops, transport and jobs, while still having access to parkland and green spaces.
"The homes show how contemporary living differs from typical suburban living to a more urban style," Mr Edgar said.
The masterplanned community aims for green credentials, with all new home sites equipped with geothermal heating and cooling which an reduce energy costs for residents.
When complete, 800 homes will occupy the 38.5-hectare Fairwater site, all of which will enjoy landscaped parks, lakes and water features, bike tracks, play areas and walkways.
Frasers Property Australia, formerly known as Australand, is about to release the final
collection of homes for 2015 at Fairwater, and will offer a limited selection of two-, three- and four-bedroom homes.
Details: http://www.fairwaterliving.com.au or call 13 38 38.
The Fairwater Display Village and Sales Centre is open seven days a week.

Fairfax Media Management Pty Limited

FCL, DBS maintain BUY: (Final results to FY9/15 out after mkt close 6 Nov 15):

An Emerging Contender
Strong income visibility from locked-in residential sales.
Frasers Centrepoint Limited (FCL) continues to offer strong
earnings visibility by having locked-in almost c.S$3.5bn sales
across its various major markets of Singapore, China and
Australia. The group has executed well which enables it to
substantially de-risk its exposures in the slowing residential
market in Singapore, while its development projects in
Australia are mainly in the mass- to mid-end segments which
continue to deliver consistent sales.
Growing recurring revenues from its commercial and
hospitality divisions. The group has a long target to grow
recurring revenues to 60% of total revenues in the medium
term. To reach this target, FCL will be (i) completing a number
of retail and office projects in Singapore by 2018, and (ii)
Frasers Hospitality is also expected to see its footprint expand
to 30,000 managed units by 2019. In addition, the recent
acquisition of the Malmaison Hotel du vin Group (MHDV),
which has a portfolio of 29 boutique lifestyle hotels and 2,082
keys within 25 regional cities in the UK, will further deepen its
presence and clientele reach in Europe.
Tapping on existing capital-recycling platforms. FCL currently
performs capital recycling through its listed REITs which the
group can opportunistically divest mature yield properties to
free up capital and reinvest in other higher-ROE projects.
Valuation:
We have a BUY recommendation on FCL, with a target price of
S$2.36 based on a 30% discount to RNAV. We think that FCL
is attractive at 0.6x P/Bk NAV and believe that the stock is
trading at this level largely due to its tight liquidity constraints.
Key Risks to Our View:
Dependent on the outlook of Australia's real estate
market, currency outlook. The group derives an estimated
30% of PBIT and 35% from Australia which is dependent on
the real estate market and whose returns could be impacted
by the weakening AUD/SGD exchange rate.

http://infopub.sgx.com/Apps?A=COW_CorpAn...6Nov15.pdf

Finals maintained at 6.2 cents with Total DPS at 8.6 for the year...

Man$kam, Man$kam... in line with expectations...

Towkay used OPM to the optimal and hence bankers and himself need to be kept happy. Minorities (albeit so minor) oso benefited from his risks taking profile.

Vested Core 
GG

(06-11-2015, 07:37 PM)greengiraffe Wrote: http://infopub.sgx.com/Apps?A=COW_CorpAn...6Nov15.pdf

Finals maintained at 6.2 cents with Total DPS at 8.6 for the year...

Man$kam, Man$kam... in line with expectations...

Towkay used OPM to the optimal and hence bankers and himself need to be kept happy. Minorities (albeit so minor) oso benefited from his risks taking profile.

Vested Core 
GG

Frasers Prop Australia:
Portfolio weighted average capitalisation rate of 7.47%
‒Industrial: 7.77%
‒Office: 7.03%
Investment demand remains strong with potential for further compression in yields, as evidenced by the sale of Frasers/GIC Australian Logistics Portfolio at a circa 6.00% yield
Yields continue to tighten, particularly in Sydney and Melbourne, with recent evidence of sub 6% cap rates
Portfolio valued at S$2.5 billion1
‒Industrial: S$1.5 billion1
‒Office: S$1.0 billion1
Portfolio occupancy (by income) of 96.8%
‒Industrial: 96.6%
‒Office: 97.2%
Quite obviously, they are quite happy that there are haigongs out there willing to set benchmarks.

Anyway, these 2 segments are the major ones to watch out for that FCL is looking to unlock in the coming yr

(06-11-2015, 08:07 PM)greengiraffe Wrote:

(06-11-2015, 07:37 PM)greengiraffe Wrote: http://infopub.sgx.com/Apps?A=COW_CorpAn...6Nov15.pdf

Finals maintained at 6.2 cents with Total DPS at 8.6 for the year...

Man$kam, Man$kam... in line with expectations...

Towkay used OPM to the optimal and hence bankers and himself need to be kept happy. Minorities (albeit so minor) oso benefited from his risks taking profile.

Vested Core 
GG

Frasers Prop Australia:
Portfolio weighted average capitalisation rate of 7.47%
‒Industrial: 7.77%
‒Office: 7.03%
Investment demand remains strong with potential for further compression in yields, as evidenced by the sale of Frasers/GIC Australian Logistics Portfolio at a circa 6.00% yield
Yields continue to tighten, particularly in Sydney and Melbourne, with recent evidence of sub 6% cap rates
Portfolio valued at S$2.5 billion1
‒Industrial: S$1.5 billion1
‒Office: S$1.0 billion1
Portfolio occupancy (by income) of 96.8%
‒Industrial: 96.6%
‒Office: 97.2%
Quite obviously, they are quite happy that there are haigongs out there willing to set benchmarks.

Anyway, these 2 segments are the major ones to watch out for that FCL is looking to unlock in the coming yr

Industrial @ 7% cap rate will be 1.65bn +10% b4 recurrent fee income...

Office @ 6.5% will be 1.08bn +8% before recurrent fee income

In addition Frasers Prop Australia still has the twin turbo of pipeline for future investment properties and outright design and build sale type of commercial industrial properties for clients

Why capland so stupid to let ALZ or the current Frasers Prop Australia went for a song after holding on to nearly 15 yrs simply because returns from Down Under is lower but more stable?

Frasers Centrepoint’s profit soars on Australand buy

• THE AUSTRALIAN
  
• NOVEMBER 09, 2015 12:00AM
  

Ben Wilmot
[Image: ben_wilmot.png]
Commercial Property Editor
Sydney

[Image: 750368-65d597c6-85c2-11e5-9851-7bf406229885.jpg]
Frasers Property Australia chief executive Rod Fehring. Source: News Corp Australia
[b]The Singapore-listed Frasers Centrepoint, controlled by Thai tycoon Charoen Sirivadhanabhakdi, is reaping the benefits of its $2.6 billion takeover of the ­Australand Property Group, with its local operations driving a jump in full-year results.[/b]
Frasers Centrepoint revealed that revenue and pre-tax profits soared by 62 per cent and 44 per cent year-on-year to $S3.56bn ($3.55bn) and $S1.10bn respectively, with the growth fuelled mainly by new income streams from Australand and a separate hotel play that saw Frasers Hospitality Trust launched in Singapore.
“Revenue and profit increased as the benefits of our acquisition of Australand and listing of FHT are realised. Moreover, our growth is becoming more sustainable as we enlarge our recurring income base,” Frasers Centrepoint chief executive Lim Ee Seng said.
Frasers Centrepoint fully integrated Australand during the financial year and it is led by locally by chief executive Rod Fehring, and a new senior management team. It was rebranded as Frasers Property Australia in August this year and launched a new retail business unit last month with ­ambitions of growing that to $1bn.
Frasers Centrepoint has given the local business a broad mandate to pursue substantial growth, with the group expecting to manage an extra $10bn worth of property over the next five years, The Australian reported in September.
The company plans to inject its development pipeline assets into REITs and has flagged the launch of a Singapore-based trust specialising in industrial assets, which could hold some Australand assets.
Frasers Centrepoint said it also wanted to replenish its land bank in a capital-efficient manner in Australia. Some existing towers have been sold to Singapore-based REITs its manages.
FPA sold 357 Collins Street in Melbourne to Frasers Commercial Trust for $222.5m in August and later flagged its remaining ­office holdings at Melbourne’s Freshwater Place could be placed into its trust. The Sofitel Sydney Wentworth was also sold into its to hotel trust for $224m.
FPA, comprising the former Australand and Fraser Centrepoint’s original development business in Australia, registered a 67 per cent year-on-year revenue surge to $S1.37bn as well a 116 per cent leap in profit to $S270m.
The former Australand contributed $S1.09bn and $S212m to revenue and profit, stemming mainly from its investment properties and the completion of Wolli Creek and Clemton Park projects in Sydney and Carlton project in Melbourne.

http://www.frasersproperty.com.au/VIC/Berwick-Waters

FAMILIES LAP UP WATER


303 words
7 Nov 2015
Herald-Sun
HERSUN

English

LAND ACROSS MELBOURNE ADVERTISING FEATURE CASEY development Berwick Waters continues its success with the recent auction of five land lots in The Strand precinct.
These sales took the number of blocks sold at Berwick Waters to more than 400. Fifteen families took part in the lively auction.
The five large, water-facing blocks were the last featuring water views in this stage. With blocks ranging from 476 to 544sq m, these blocks attracted bids from $335,000 to $415,000.
The masterplanned community by Frasers Property Australia and Mondous Property Australia offers homes set among 52ha of wetlands, complete with 9km of walking and bike trails, fitness stations and viewing platforms over the wetlands.
Frasers Property Australia development director Jill Lim said the developers were delighted with the interest shown by families for the flagship project.
“The Strand is a particularly exciting precinct and brings with it a stunning vista of water views and lush surrounds perfect for bringing up a young family or even for empty nesters looking for ideal living options that suit their interests and needs,” Ms Lim said.
“With a vast display village featuring many of Victoria’s top builders, Berwick Waters enables these newest landowners the chance to view the latest offerings in home design so they can start their new home-building adventure almost from day one.” Between 2500 and 3000 families will live at Berwick Waters when the project is completed.
“Diversity is key to this signature project and over the coming months we will feature a wide range of offers that will be the mainstay of this 270ha mixed-use development,” said Anthony Boyd, Frasers Property Australia executive general manager, residential.For details phone Frasers Property Australia on 133 838 or visit Berwick Waters at 5 Riverstone Boulevard, Clyde North

News Ltd.

http://www.frasersproperty.com.au/SMP/NS...alk/Botany

Projects pay homage to industrial heritage
CAROLYN BOYD

837 words
7 Nov 2015
Sydney Morning Herald
SMHH

English

Newhomes
Unit developments in Botany, Camperdown and Newtown are helping to revitalise the city.
A former industrial site in Botany is providing its architects, Group GSA, with a rich tapestry to build upon. The past home of Newtown Dyers and Bleachers is being redeveloped into Tailor's Walk, a medium-density master-planned community that will pay homage to Botany's history with recycled brickwork, timber and metal accents, and stone finishes.
Tailor's Walk will weave "new life and character into the established suburb of Botany", says Nigel Edgar, general manager of NSW residential for the developer, Frasers Property Australia. The 3.1-hectare site is bounded by Pemberton and Wilson streets, and will include four-bedroom triple-storey terraces and a mix of apartments in five buildings of six to eight storeys high.
In Camperdown, the last stage of the Ryvita Biscuit Factory redevelopment, will be released this weekend.
Camperdown's industrial heritage provided an opportunity to "make a unique contribution to the built landscape of the area", says Michael Heenan, chief executive of the architects, Allen Jack + Cottier.
The inner-west's signature eclectic feel is also being drawn upon in Newtown in a design by architect Tone Wheeler, of Environa Studio. The Junction Newtown will be a boutique development of 11 apartments, five of them zoned as two-storey "live-work" offerings.
Wheeler says the Manahan Property Group development "offers an alternative way of living and working, which suits the residents of Newtown".
The triangular site has two street frontages. "Along Gladstone Street the building will be more textured with off-form concrete and timber, while the 'Live-Work' apartments along Phillip Street will be more industrial to pay visual homage to the area's working class heritage," says Wheeler.
1
Tailor's Walk
52-54 Pemberton Street, Botany
One-beds, 50-64 square metres $600,000+
Two-beds, 70-107 square metres $780,000+
Three-beds, 96-124 square metres $1.07 million+
Four-bed terrace homes, 176-185 square metres $1.6 million+
Strata levies From $780 a quarter
Due for completion 2018
Agent Frasers Property Australia, 9263 8888; tailorswalk.com
Among those expected to take a shine to Tailor's Walk are young families. No doubt the direct pedestrian link to Botany Village, and a new 3000-square-metre park equipped with outdoor seating and children's play equipment will help.
The director of architecture and interior design for Group GSA, Lisa-Maree Carrigan, says many apartments at Tailor's Walk feature full-height glazing and spacious balconies or courtyards.
Botany is in the midst of change and has been earmarked for urban revitalisation. The local council recently released a long-term masterplan that included unlocking the area's wetlands to provide greater amenity to the public.
2
Urban Camperdown
Barr Street, Camperdown
One-beds, 41-70 square metres $659,000+
Two-beds, 67-108 square metres $1,138,000+
Three-beds, 101-122 square metres $1.75 million+
Terrace homes, 130 square metres $2.15 million+
Strata levies From $585 a quarter
Due for completion 2017
Agent Ausin Group, 1300 786 098; urbancamperdown.com.au
The $250-million Urban Camperdown project has been designed by big-name architects Allen Jack+Cottier for developer Mark Mezrani.
Urban will deliver 199 apartments and 15 three-storey terrace houses across five buildings of five to seven stories high. It follows earlier developments DNA Camperdown and The Biscuit Factory at the former Ryvita Biscuit Factory site.
Key features of the Urban apartments will be their 2.7-metre-high ceilings, stone benchtops in the kitchens and sizeable balconies. Studies have been included in many of the apartments. They are expected to appeal to students, or investors hoping to attract student tenants, and professionals working from home.
3
The Junction Newtown
Corner of Gladstone and Phillip streets, Newtown
One-beds, 45-54 square metres $590,000+
Two-beds, 65-92 square metres $850,000+
Live-work configurations, 90-127 square metres $890,000+
Strata levies From $650 a quarter
Due for completion Mid-2017
Agent Ray White Erskineville, 0417 884 882; thejunctionnewtown.com.au
Sales agent Peter Shield from Ray White Erskineville says The Junction Newtown should appeal to young professionals "who like to live close to the action".
"We also envisage some parents may consider buying apartments in The Junction for their children who are attending one of the nearby educational facilities," says Shield.
Designed by Tone Wheeler of Environa Studio, The Junction will have solid balconies for greater privacy and steel-framed concrete walls, sound-deadening timber floors and balconies, and extra thick glazing to provide a buffer from Newtown's lively surrounding streets. "We've also added aluminium screens, which residents will adjust depending on their mood and the time of the day," says Wheeler. "This will give the building a random, ever-changing appearance."

Fairfax Media Management Pty Limited

http://www.centralparksydney.com/

Q & A: Dr Stanley Quek, property developer
Milanda Rout

818 words
6 Nov 2015
Wish Magazine
NLWISH

English

I was a medical doctor. I trained in Ireland, I lived in England and I came back to Singapore [where I was born] to work.
I worked as a family doctor for nearly 20 years. I fell in love with property and development. I was passionate about design and building things. On a trip to Australia in 1992, I came across property here, and I decided that the opportunities were great. I decided to manage property and developments with a partner.
That is how I got into property [Quek is the executive chairman of Greencliff and former CEO of Frasers Property Australia, co-developers of Central Park, Chippendale].
The building was named Greencliffe. I bought it from the Waterhouse family. That was my first property development in Sydney. It was interesting times, the property market was recovering and we were lucky to be able to buy property so I bought the Hyde Park Regency, some property in North Sydney and Hopetoun Quays in Birchgrove. Those were great times.
Central Park was the biggest mixeduse project [with apartments, offices, restaurants and retail] that we have done.
Kensington Street is part of Central Park; it was part of the Carlton & United Breweries site in Sydney. It was put on the market in 2006 and we bought the site. It included the brewery and 36 historic buildings, including cottages on Kensington Street, which were used to house managers and workers of the brewery. They are dated back to the 1840s-50s.
When we started the Central Park development, it was clear these cottages had to be treated very carefully.
When we did the master plan with the City of Sydney, Mayor Clover Moore was very keen on having her laneways. It would have been called Kensington Lane if it was possible but there is another Kensington Lane somewhere else so it remains Kensington Street.
Location is very important.
In the beginning, I really loved sites that overlooked the water so that is why we bought Greencliffe and then I loved greenery so we bought the Hyde Park Regency. But as I have got more into design and living, I got more into urban regeneration and I thought that is where I could really create communities.
So I moved on from location to creating communities.
We are doing it in Central Park. What was a disused site and closed off for years, we have opened it up, we have created a park, we have created taller buildings at the edge of major roads, and we were trying to provide accommodation as well as new green areas. Kensington Street is giving Sydney what it hasn't got - sensitively restored old houses and cottages. I created an alley behind the houses, called Spice Alley, which has become a series of KopiTiam [Malaysian slang for coffee shop] and hawker-style eateries [see our hotel story on page 112].
Food is much more important than retail now because you can shop online but you cannot really buy dinner online. You go and enjoy a restaurant, you enjoy the ambience, you enjoy the company you are with, you enjoy the smells and taste of the food. People love seeing the food people cooked in open kitchens. That is our aim with Kensington Street and I hope it will be very successful.
In Melbourne, you have Hardware Lane and Flinders Lane, in London, you have Brick Lane, each city has its own, but Sydney doesn't really have it. I think mainly because it was owned by individuals and no one was able to create such a street.
I think Sydney needs places where people can go and wander. I think the mayor is doing great things to make Sydney more liveable.
The whole process of restoration is more difficult than a new building. You have to really love it. With Kensington Street, we were lucky, you needed to own one side of the street, which we were able to do and then we were able to create something more significant than something done house by house.
I am much more interested now in restoration, in adaptive reuse of old buildings. I would like to find a similar thing, maybe in Paddington, or bits of Paddington, as some of it has gone downhill. Surry Hills - you once would never have gone near Surry Hills, and now it is wonderful and exciting. But I still think there is more that needs to be done. What is the new hottest area? I think Chippendale is, I think Redfern is, these are the areas that need rejuvenation and hopefully I can set that example with Kensington Street. I am also looking for things in Penang, Malaysia, where there are lots of historical buildings, also in Singapore, and the same hopefully in some of the more beautiful buildings of Europe.

News Ltd.

http://infopub.sgx.com/Apps?A=COW_CorpAn...9Nov15.pdf

FRASERS CENTREPOINT LIMITED
(Incorporated in the Republic of Singapore)
(Company Registration No. 196300440G)
POTENTIAL STRATEGIC INVESTMENT IN GOLDEN LAND PROPERTY DEVELOPMENT PUBLIC
COMPANY LIMITED
1. INTRODUCTION
1.1 The Board of Directors of Frasers Centrepoint Limited (“FCL”, and together with its subsidiaries,
the “Group”) wishes to announce that the Board has approved a potential strategic investment
(through the subscription of new ordinary shares) (the “Proposed Transaction”) in Golden
Land Property Development Public Company Limited (“Gold”), a public company listed on the
Stock Exchange of Thailand, subject to agreement of terms, and entry into, of a share
subscription agreement (the “Agreement”).
1.2 As at the date of this Announcement, Univentures Public Company Limited (“UV”) holds 55.7%
of the issued share capital of Gold. Adelfos Company Limited, which is owned by Mr. Panote
Sirivadhanabhakdi and Mr. Thapana Sirivadhanabhakdi on a 50:50 basis, is a major
shareholder of UV . Mr. Panote Sirivadhanabhakdi is a director of FCL, and both he and Mr.
Thapana Sirivadhanabhakdi are immediate family members of Mr. Charoen Sirivadhanabhakdi
and Khunying Wanna Sirivadhanabhakdi, who are directors and controlling shareholders of
FCL.
1.3 If FCL and Gold agree on terms of the Agreement, upon completion of the Proposed
Transaction, it is expected that FCL will hold approximately 29.5% of the enlarged issued share
capital of Gold while UV will hold approximately 39.3% of the enlarged issued share capital of
Gold.
2. INFORMATION ON THE TARGET GROUP
The business of Gold and its subsidiaries (the “Target Group”) comprises (a) residential and
commercial property development, and (b) property management and property advisory
services, in Thailand. The Target Group’s residential real estate business focuses mainly on
single/semi-detached housing and townhouse residential projects under the flagship brand of
“Golden”, as well as a few mixed-used commercial and hospitality projects in the central
2
business district of Bangkok, Thailand. Gold intends to apply the proceeds from the Proposed
Transaction to fund new investment and development of residential projects, reduce gearing
and for general corporate funding.
3. CONSIDERATION
3.1 Subject to finalisation of the terms of the Agreement, it is expected that FCL will pay a
consideration (the “Consideration”) of an aggregate amount of Baht 4,971 million (equivalent
to approximately S$196 million1) for the subscription of the new ordinary shares in Gold, at a
subscription price of Baht 7.25 (equivalent to approximately S$0.29) per share. The
subscription price represents a premium of 1.4% to the last closing price of Gold’s shares on 6
November 2015 (being the last trading day prior to the date of this announcement), a premium
of 3.0% and 8.0% to the 30 days2 and 90 days2 volume weighted average price (“VWAP”) of
Gold’s shares, respectively, and a premium of 32.3% to the pro-forma net asset value of Target
Group based on its unaudited consolidated financial statements for the period ended 30 June
2015, post-completion of the Proposed Transaction.
3.2 The Consideration takes into account, among others, a valuation report dated inOctober 2015
prepared by Knight Frank Chartered (Thailand) Company Limited (the “Valuation Report”) and
commissioned by FCL in respect of Gold’s underlying assets. Pursuant to the Valuation Report,
the market value of Gold’s underlying assets is Baht 23,694 million (equivalent to approximately
S$936 million) as at 30 June 2015. FCL expects to fully satisfy the Consideration in cash, which
will be funded by the Group’s internal cash resources and external bank borrowings.
3.3 Based on the unaudited consolidated financial statements of the Target Group for the period
ended 30 June 2015, the book value of the Target Group is approximately Baht 7,767 million
(equivalent to approximately S$307 million). The Proposed Transaction, if completed, is
expected to increase Gold’s book value to Baht 12,738 million (equivalent to approximately
S$503 million).
3.4 The Proposed Transaction is not expected to have any material financial impact on the earnings
per share or NTA per share of the Group.
4. RATIONALE FOR THE TRANSACTION
4.1 FCL is a full-fledged international real estate company and one of Singapore's top property
companies with total assets above S$23 billion as at 30 September 2015. FCL has four core
businesses focused on residential, commercial and hospitality and industrial properties
spanning more than 77 cities across Asia, Australasia, Europe, and the Middle-East. FCL is
listed on the Main Board of the SGX-ST and is the sponsor and manager of two real estate
investment trusts listed on the Main Board of the SGX-ST, Frasers Centrepoint Trust and
Frasers Commercial Trust that are focused on retail properties, and office and business space
properties respectively, and one stapled trust listed on the Main Board of the SGX-ST, Frasers
1 In this Announcement, unless otherwise stated, translations of amounts from the Thai Baht to Singapore dollars have been
made on the basis of S$1 : THB25.3164557 as at 5 November 2015.
2 As at 6 November 2015 from Bloomberg.
3
Hospitality Trust (comprising Frasers Hospitality Real Estate Investment Trust and Frasers
Hospitality Business Trust) that is focused on hospitality properties.
4.2 In December 2014, FCL announced the divestment of its entire 49% shareholding interest in
Riverside Homes Development Co., Ltd (“RHD”) to SMJC Real Estate Co., Ltd, and its entire
40.45% interest in Krungthep Land Public Company Limited (“KLand”) to Gold. RHD is a single
condominium project development joint-venture company in Thailand, having completed a
high-rise residential project called “The Pano” located along Rama III Road, Yannawa District,
Bangkok; whereas KLand is in landed residential development business, focusing in both midincome
and luxury segments. The exit from both companies, allowed FCL to rebalance its
portfolio and seek other investment opportunities or platform in Thailand.
4.3 As stated in paragraph 2 of this Announcement, the Target Group’s business comprises (a)
residential and commercial property development, and (b) property management and property
advisory services, in Thailand. Having examined Gold’s business profile, track record and
management record, the Board considers the Target Group to be complementary to FCL’s
business profile and would present a suitable opportunity for FCL to re-enter the Thai residential
and commercial property markets and leverage on FCL’s controlling shareholders’ strong home
market advantage. In particular, the Target Group’s business profile has a shared philosophy
with FCL, which is to capture the broad base residential market in the mid-income segment and
with a focus on growing recurring income from its commercial property developments. The
Target Group also plans to embark on larger mixed-use projects and to establish a real estate
investment trust (“REIT”) platform. FCL’s international experience and interest in these areas
will complement the Target Group’s long-term growth aspirations.