Frasers Hospitality Trust (FHT)

[greengiraffe]

http://www.businesstimes.com.sg/breaking...es-2014060

PUBLISHED JUNE 09, 2014
Thai tycoon Charoen's hospitality trust IPO could raise up to US$358m: sources
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Charoen0906
Thai billionaire Charoen Sirivadhanabhakdi's Singapore real estate company Frasers Centrepoint Ltd (FCL) could raise as much as US$358 million by listing a hospitality industry trust business in Singapore, two people with direct knowledge of the matter said. - PHOTO: THE NATION, BANGKOK
[SINGAPORE] Thai billionaire Charoen Sirivadhanabhakdi's Singapore real estate company Frasers Centrepoint Ltd (FCL) could raise as much as US$358 million by listing a hospitality industry trust business in Singapore, two people with direct knowledge of the matter said.
The deal size is slightly below an earlier estimate of as much as US$480 million for the initial public offering, made before Frasers Hospitality Trust (FHT) began pre-marketing last week. The trust comprises six serviced residences controlled by FCL and six hotels such as Singapore's InterContinental Hotel, owned by Charoen's TCC group.
FCL indicated to investors the newly listed firm will have a market capitalisation of between S$1.02 billion (US$815 million) to S$1.12 billion, one of the people told Reuters. The parent plans to sell 30 per cent to 40 per cent stake of FHT to investors, raising up to S$448 million (US$358 million), both people said.
The people did not want to be identified because the details of the deal are not public.

http://www.financeasia.com/News/387688,f...s-ipo.aspx

[MINX]

http://www.businesstimes.com.sg/breaking...es-2014060

PUBLISHED JUNE 09, 2014
Thai tycoon Charoen's hospitality trust IPO could raise up to US$358m: sources
PRINT |EMAIL THIS ARTICLE
Charoen0906
Thai billionaire Charoen Sirivadhanabhakdi's Singapore real estate company Frasers Centrepoint Ltd (FCL) could raise as much as US$358 million by listing a hospitality industry trust business in Singapore, two people with direct knowledge of the matter said. - PHOTO: THE NATION, BANGKOK
[SINGAPORE] Thai billionaire Charoen Sirivadhanabhakdi's Singapore real estate company Frasers Centrepoint Ltd (FCL) could raise as much as US$358 million by listing a hospitality industry trust business in Singapore, two people with direct knowledge of the matter said.
The deal size is slightly below an earlier estimate of as much as US$480 million for the initial public offering, made before Frasers Hospitality Trust (FHT) began pre-marketing last week. The trust comprises six serviced residences controlled by FCL and six hotels such as Singapore's InterContinental Hotel, owned by Charoen's TCC group.
FCL indicated to investors the newly listed firm will have a market capitalisation of between S$1.02 billion (US$815 million) to S$1.12 billion, one of the people told Reuters. The parent plans to sell 30 per cent to 40 per cent stake of FHT to investors, raising up to S$448 million (US$358 million), both people said.
The people did not want to be identified because the details of the deal are not public.

http://www.financeasia.com/News/387688,f...s-ipo.aspx

The amount raised is 25% less than initial planned, what does that imply? The article above equate that as slightly less, I thought 122 million is quite a substantive amount?

[jianjian]

http://www.businesstimes.com.sg/breaking...es-2014060

PUBLISHED JUNE 09, 2014
Thai tycoon Charoen's hospitality trust IPO could raise up to US$358m: sources
PRINT |EMAIL THIS ARTICLE
Charoen0906
Thai billionaire Charoen Sirivadhanabhakdi's Singapore real estate company Frasers Centrepoint Ltd (FCL) could raise as much as US$358 million by listing a hospitality industry trust business in Singapore, two people with direct knowledge of the matter said. - PHOTO: THE NATION, BANGKOK
[SINGAPORE] Thai billionaire Charoen Sirivadhanabhakdi's Singapore real estate company Frasers Centrepoint Ltd (FCL) could raise as much as US$358 million by listing a hospitality industry trust business in Singapore, two people with direct knowledge of the matter said.
The deal size is slightly below an earlier estimate of as much as US$480 million for the initial public offering, made before Frasers Hospitality Trust (FHT) began pre-marketing last week. The trust comprises six serviced residences controlled by FCL and six hotels such as Singapore's InterContinental Hotel, owned by Charoen's TCC group.
FCL indicated to investors the newly listed firm will have a market capitalisation of between S$1.02 billion (US$815 million) to S$1.12 billion, one of the people told Reuters. The parent plans to sell 30 per cent to 40 per cent stake of FHT to investors, raising up to S$448 million (US$358 million), both people said.
The people did not want to be identified because the details of the deal are not public.

http://www.financeasia.com/News/387688,f...s-ipo.aspx

The amount raised is 25% less than initial planned, what does that imply? The article above equate that as slightly less, I thought 122 million is quite a substantive amount?

lesser free float for public? i am not so sure. any 1 can enlighthen.

[greengiraffe]

http://infopub.sgx.com/FileOpen/FHT-IPO-...eID=303408

Post Over-Allotment
TCC controls 40%, FCL 22%

Information on the Cornerstone Investors

(i) DBS Bank Ltd. - 2.4%
DBS is a leading financial services group in Asia, with over 250 branches across 17 markets. The
bank’s capital position, as well as “AA-” and “Aa1” credit ratings, is among the highest in
Asia-Pacific. DBS has been recognised as “Asia’s Best Bank” by The Banker, a member of the
Financial Times group, and “Best Managed Bank in Asia-Pacific” by The Asian Banker. The bank
has also been named “Safest Bank in Asia” by Global Finance for five consecutive years from
2009 to 2013.
The bank has entered into the cornerstone subscription agreement to subscribe for the Stapled
Securities.

(ii) DBS Bank Ltd. (on behalf of certain private banking customers) - 3.8%
As at 31 May 2014, the private banking business of DBS has total assets under management of
circa USD26.9 billion. DBS is a leading financial services group in Asia, with over 250 branches
across 17 markets. The bank’s capital position, as well as “AA-” and “Aa1” credit ratings, is among
the highest in Asia-Pacific. DBS has been recognised as “Asia’s Best Bank” by The Banker, a
member of the Financial Times group, and “Best Managed Bank in Asia-Pacific” by The Asian
Banker. The bank has also been named “Safest Bank in Asia” by Global Finance for five
consecutive years from 2009 to 2013.
The bank has entered into the cornerstone subscription agreement, on behalf of certain of its
private banking customers, to subscribe for the Stapled Securities. The Stapled Securities will be
held in custody by DBS Nominees (Pte) Ltd, on behalf of such customers.

(iii) Fortress Capital Asset Management (M) Sdn Bhd - 3.8%
Fortress Capital Asset Management (M) Sdn Bhd (“FCAM”) is an established, independent asset
management and private investment group that was formed in 2003. FCAM is a licensed fund
manager under the Capital Markets and Services Act 2007 of Malaysia. FCAM manages
151
investment portfolios for institutional investors and the high net worth segment, providing its
clients with independent access to public and private equity opportunities across the Asia-Pacific
region.

(iv) Meren Pte Ltd - Metro - 1.9%
Meren Pte Ltd is a wholly-owned subsidiary of Metro Holdings Ltd, an SGX-listed company. The
Metro group’s core businesses are in property development and investment, and retail. The
group’s key markets are the People’s Republic of China, Indonesia and Singapore.

(v) Mr Gordon Tang & Family - 2.9%
Mr Gordon Tang is a Non-Executive Director of SGX-Catalist listed SingHaiyi Group Limited,
which specialises in property development, real estate investment, real estate co-investing,
property trading and real estate management services. Mr Gordon Tang, Mr Tang Qingquan and
Mdm Yang Chanzhen have entered into the cornerstone subscription agreements to subscribe for
Stapled Securities. Mr Tang Qingquan and Mdm Yang Chanzhen are the parents of Mr Gordon
Tang.

(vi) Wealthy Fountain Holdings Inc - Tong Jinquan - 4.8%
Wealthy Fountain Holdings Inc is a BVI-incorporated investment holding company which is
wholly-owned by Mr Tong Jinquan, the founder of the Summit Group. Mr Tong also wholly-owns
Shanghai Summit Pte. Ltd.. Mr Tong has over 20 years of experience in property investment,
property development and property management and he founded the Summit Group in 1994. The
Summit Group’s areas of business encompass industrial investment, investment management,
trading, property development, hotel management, property management, business consultancy,
convention and exhibition services, goods export and technology import, software services and
maintenance of office equipment. The total assets of the Summit Group as at 31 December 2012
amounted to RMB22.15 billion.

[greengiraffe]

Frasers Hospitality share placement 21 times subscribed
321 words
30 Jun 2014
Channel NewsAsia
CNEWAS
English
© 2014 MediaCorp News Pte Ltd. All Rights Reserved
SINGAPORE: Frasers Hospitality Trust on Monday (June 30) provided more details about its S$367.9 million initial public offering (IPO), saying the offer has seen strong demand from institutional investors.

The hotels and serviced residences real estate investment trust (REIT) said its international placement of 139.6 million stapled securities at S$0.88 apiece attracted interests valued around S$2.5 billion - which translates to a subscription rate of around 21 times.

A group of cornerstone investors, including DBS and Fortress Capital Asset Management, had subscribed for another 232.9 million stapled securities, also priced at S$0.88 each.

The public portion of its IPO, aimed at ordinary retail investors, will comprise 45.5 million stapled securities priced at S$0.88 apiece.

The public offer opens at 9am on Tuesday and closes at 12pm on July 10, Frasers Hospitality said. The stapled securities will begin trading on the Singapore Exchange on July 14.

Frasers Hospitality - which is sponsored by Singapore property giant Frasers Centrepoint Ltd - will have an initial portfolio of six hotels and six serviced residences valued around S$1.7 billion.

The six hotels, which came from Frasers Centrepoint's Thai parent TCC Group, are the InterContinental Singapore, Novotel Rockford Darling Harbour, Park International London, Best Western Cromwell London, ANA Crowne Plaza Kobe and Westin Kuala Lumpur.

The six serviced residences are Fraser Suites Singapore, Fraser Suites Sydney, Fraser Place Canary Wharf, Fraser Suites Queens Gate, Fraser Suites Glasgow and Fraser Suites Edinburgh.

Frasers Hospitality also has first right of refusal to buy another 18 properties from its parent companies.

The REIT offers investors an indicative yield of 7 per cent for the full financial year from 1 October 2014 to 30 September 2015.

Frasers Centrepoint and TCC Hospitality, an associate of TCC Group, will together hold around 65 percent of Frasers Hospitality after the IPO.

- CNA/ly


MCN International Pte Ltd.

Document CNEWAS0020140630ea6u000ru

[greengiraffe]

FHT, Lim&Tan noted:

While the strong 21x subscription rate (for the international
placement tranche of 139.6mln shares at 88 cents) for Frasers
Hospitality Trust’s (FHT) initial public offering could see a decent
debut for the Trust next week, we note that at its indicative
annualized yield of 6.9% for this year and 7% next year, it is little
different from its peers such as Ascott Residence Trust’s 6.6% this
year and 6.9% next year, CDL REIT’s 6.3% and 6.8% and Far
East Hospitality’s 6.4% and 6.8%.
And while FHT’s yield is slightly better than its peers, we note that
its price to book of 1.06x is also slightly ahead of its peer average
of just below 1x while its gearing of 41.6% it also ahead of its peer’s
average of 35%. While its pipeline of potential injections from its
sponsors are strong at more than 10 properties, we note that
based on management’s guidance of a long term gearing target
of 40%, it means that potential acquisitions would result in DPU
dilution from the issue of new units. In addition, the rising interest
rate concerns over the next few years would be a dampener given
its relatively high gearing ratio.
Given these factors, fundamentally, we are pretty “neutral” on FHT
as its valuations are not much different from sector peers but the
strong 21x subscription rate for its international placement tranche
could present investors with an opportunity to “Stag” the IPO.

[Temperament]

i agree. It looks like stag is better than long-term holding. i + family may tikam a bit for fun. If unable to stag, holding long-term is not too bad either. Is CPFIS allow to participate?
But i also read cornerstone investors don't have holding period. That is they can stag too. Ha! Ha!
Will they? Then have to hold long term lol.

[swakoo]

While the strong 21x subscription rate (for the international
placement tranche of 139.6mln shares at 88 cents) for Frasers
Hospitality Trust’s (FHT) initial public offering could see a decent
debut for the Trust next week, we note that at its indicative
annualized yield of 6.9% for this year and 7% next year, it is little
different from its peers such as Ascott Residence Trust’s 6.6% this
year and 6.9% next year, CDL REIT’s 6.3% and 6.8% and Far
East Hospitality’s 6.4% and 6.8%.
And while FHT’s yield is slightly better than its peers, we note that
its price to book of 1.06x is also slightly ahead of its peer average
of just below 1x while its gearing of 41.6% it also ahead of its peer’s
average of 35%. While its pipeline of potential injections from its
sponsors are strong at more than 10 properties, we note that
based on management’s guidance of a long term gearing target
of 40%, it means that potential acquisitions would result in DPU
dilution from the issue of new units. In addition, the rising interest
rate concerns over the next few years would be a dampener given
its relatively high gearing ratio.
Given these factors, fundamentally, we are pretty “neutral” on FHT
as its valuations are not much different from sector peers but the
strong 21x subscription rate for its international placement tranche
could present investors with an opportunity to “Stag” the IPO.

Without "Payment Top-Up" for 2 of the assets, forecast yield is 6.5% this year and next year. AKA income support (financial engineering).

FHT Prospectus

[Art or Science]

Frasers Hospitality Trust reports that the 628 million stapled securities offered to retail investors attracted around S$552.7 million worth of applications. This works out to a subscription rate of around 13.8 times.

http://infopub.sgx.com/FileOpen/Frasers_...eID=305160

[greengiraffe]

Singapore float set to rock our hotel market
BEN WILMOT THE AUSTRALIAN JULY 15, 2014 12:00AM

THE launch of Frasers Hospitality Trust in Singapore could see a new portfolio of Australian hotels worth more than $500 million change hands.

The group has just raised $S365.2m ($313.5m) in a float that was billed as the largest by a Singaporean real estate investment trust this year. It ended up being 19 times oversubscribed, which was welcome news for lead managers DBS, Morgan Stanley, Standard Chartered and United Overseas Bank.

But it is the potential expansion of the trust’s 12-property portfolio in Australia that has analysts talking. The REIT will start with six hotels and six serviced residences in Singapore, Australia, Britain, Japan and Malaysia, and the strong demand for stock should allow it to quickly make acquisitions.

The fund already owns the Novotel Rockford Darling Harbour and Frasers Suites in Sydney. It has a right of first refusal to purchase six further hospitality assets in Australia held by Thai billionaire Charoen Sirivadhanabhakdi or his Singapore-listed Frasers Centrepoint.

The Australian properties include the Sofitel Sydney Wentworth, InterContinental Adelaide, Hyatt Hotel Canberra, Fraser Place Melbourne, Capri by Fraser in Brisbane and Fraser Suites Perth.

The Sydney property was just bought by Frasers for $202m, and the InterContinental Adelaide and the Hyatt in Canberra were picked up for about $75m apiece four years ago by TCC, so a large reshuffle of the Australian hotel landscape is looming.

Australia’s Perpetual Corporate Trust is trustee for the Singapore REIT and also acts as trustee for the hotels and serviced residences held across the region.

The firm’s general manager, corporate clients, Andrew Cannane, says Singapore continues to grow as a major regional hub for REITs and the Australian group is working on a number of other S-REITs slated to list in 2014.

The thriving Singapore IPO market stands in contrast to Australia’s reasonably quiet market for major property floats, as much of the action has been at the smaller end this year.

Cannane predicts that cross-border flows will continue to grow and says Perpetual is well-placed to help clients across Australia and Singapore.