Frasers Property (formerly: Frasers Cpt (FCL))

[kichialo]

There is market for everything to fit different risk levels. If you able to hold to the end, this is way better than FD.
Neither do i see the marketed floated with such instruments if the deal is that good for reputable companies.

IIRC there was news that MAS is allowing Temasek or blue chip companies to issue retail bonds starting this year. I thought this FCL issue is trying to catch the liquidity before the others come in.

[greengiraffe]

http://infopub.sgx.com/FileOpen/Press%20...eID=352830

FCL closed the retail bond offer exhausting the remaining S$500m available on the upsized S$2bn facilities that was arranged with DBS back in Sept 14. The expanded issue size is right smack with my initial expectations.

Based on all the papers issued under the extra S$2bn facilities, the locked in rates translated into 4.5215% for at least 5 years.

Noted that Towkay has put in S$250m in 1st tranche of perpetual securities with coupon of 4.88%, ie FCL raised S$1.75bn from external sources.

The latest S$500m 7 year bonds is also a much better deal than a institutional S$200m 7 year bonds issued last year @ 3.95%.

With locked in fundings, revenue from locked in property sales and asset light initiatives feeding into established and to be established REIT platform, FCL is well geared into interesting times.

Hungry retail demand must never be under-estimated...

Vested
Core
GG

The following is FCL's fund raising program:

i) http://infopub.sgx.com/FileOpen/Update_a...eID=314756

Original program established 21 Mar 12 at S$1bn. Upgraded to S$3bn as of 12 Sept 14

ii) http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

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

18 Sept 14: Issued S$600m perpetual securities @ 4.88% with Towkay taking up S$250m of the issue

iii) http://infopub.sgx.com/FileOpen/Announce...eID=316458

29 Sept 14 issued S$200m 7 year notes @ 3.95%

iv) http://infopub.sgx.com/FileOpen/MTN_Prog...eID=337130

2 Mar 15 - issue S$700m perpetual securities @ 5%

v) 12 May 15 - issue S$200m 7 year notes @ 3.65% with potential of upsizing to S$500m.

So far FCL has already locked in S$1.5bn of funding under the S$2bn expansion since 12 Sept 14. The current S$200m fixed rate notes with a view of upsizing to S$500m will fully exhaust the expanded program.

Very interesting move to lock in rates before interest rates start to climb in line with normalisation of US rate cycle.

Vested
GG

[I_love_girls]

The share price needs to go up to reduce the gearing ratio. More borrowing means bad for gearing ratio. No doubt that FCL will use the money wisely, but the precarious state of the current economic situation will render the retail investors (FCL's shareholders) fearful. Note that the share price does not rise very much despite the good second quarter report. How uncool is that! Let's see whether it will reach more than $2 after this year. If $2 is not reached, this shows the narrow growth of FCL in terms of its stock's price (Not the growth of company). If tomorrow share price does not rise, next week we will be seeing FCL's share price dropping to $1.815. The key to solve this problem is to wait for Thai BEV to sell the FCL's shares to increase liquidity.

(Not Vested)

[safetyfirst]

Well i wont expect the market to be efficient all the time.. It feels good to predict but many predictions turn out to be unimportant

[Contrarian]

> The latest S$500m 7 year bonds is also a much better deal than a institutional S$200m

This is certainly a cheap source of funding. Hopefully it can replace some expired bank loans...

[greengiraffe]

FCL is being featured in the latest edition of The Edge.

Nothing new really but the feature spotlighted the importance of FCL's suite of REITs.

One statement that caught my attention was:

The stated intentions, following the acquisition, was to securitise Australand's assets.

I wonder if the "stated intentions" was that of the journalist or that of FCL since one would have logically deduced from such a mega acquisition and how it will eventually dovetail into FCL. Alongside other buddies here, I have been speculating on FCL's gameplan of going asset light not much different to Capland's historical moves in early to mid 2000s.

Anyway, I continue to hold the view that Towkay and his team will have FCL's own version of asset light strategy in view of how Capland and Kepland stripped their previous core assets.

So far it seems that Towkay is determined to have a sustainable pipeline for its REITs rather than to skate on empty in time to come.

NB: The above is my biased view.

Vested
GG

[I_love_girls]

Monday will see share price drop to 1.830. How cool is that! My stand remains. If it can rise to above 2.00 after this year, I would then consider FCL a growth company. If suka suka from the current price drop back to 1.7 or 1.6++, then this is kind of retarded growth concept!

Vested little nia!

[thor666]

Euro hunting..

FRASERS CENTREPOINT LIMITED (Incorporated in the Republic of Singapore) (Company Registration No. 196300440G)

INCORPORATION OF SUBSIDIARY

Pursuant to Rule 704(17)© of the Listing Manual of the Singapore Exchange Securities Trading Limited, Frasers Centrepoint Limited (“FCL”) wishes to announce that Frasers Hospitality Holdings Pte. Ltd., a wholly-owned subsidiary of FCL, has incorporated a whollyowned subsidiary in Singapore named “Frasers Hospitality Europe Investments Pte. Ltd.” with an initial issued share capital of S$2.00, for the purpose of investment holding.

BY ORDER OF THE BOARD
Piya Treruangrachada Company Secretary
26 May 2015

Sent from my D5503 using Tapatalk

[greengiraffe]

Your prediction didn't come through at all. We got interim dividends for free... hardly any adjustment...

What say u now?

Monday will see share price drop to 1.830. How cool is that! My stand remains. If it can rise to above 2.00 after this year, I would then consider FCL a growth company. If suka suka from the current price drop back to 1.7 or 1.6++, then this is kind of retarded growth concept!

Vested little nia!

[I_love_girls]

In the whole course of my investing life, I believe in looking at two points of view. GG, all the views you have given for FCL is extremely biased and one sided. I am just providing the alternative to neutralize the effect of the biasedness you have posted. Furthermore, stock's price is just unpredictable sometimes, maybe I would be right at some point of time in the furture!