Frasers Property (formerly: Frasers Cpt (FCL))

[Happymeowmeow]

FCL said it will use the proceeds of the proposed transaction to reduce its borrowings and gearing. Based on the proforma financial effects of the proposed sale and leaseback arrangement, assuming this has taken place on Sept 30, 2014, its gearing is estimated to decrease from 95 per cent to 91 per cent. - See more at: http://www.straitstimes.com/news/busines...3OMQ6.dpuf

gearing is still way too high

hope they can bring it down to 50% by year end

Hi happymeowmeow,

Fcl had stated that this is their comfortable gearing range and strategy in their annual report and agm. If their gearing comes down, it will likely be in anticipation for another major acquisition like Australand.

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thanks for the info.. like that I will sell it soon
I not so comfortable with such a high gearing level, especially when interest rates will be going up