Frasers Commercial Trust Gets Listing Nod

Source : The Business Times, June 27, 2008

SGX has issued an eligibility-to-list for the admission of units in FCOT to the main board

THE way has been paved for Fraser and Neave (F&N) to list Frasers Commercial Trust (FCOT), a real estate investment trust (Reit).

F&N said yesterday that the Singapore Exchange has issued an eligibility-to-list for the admission of units in FCOT to the main board.

FCOT will be established in Singapore and sponsored by Frasers Centrepoint, a wholly owned subsidiary of F&N. It will be managed by Frasers Centrepoint Asset Management (Commercial), a wholly owned subsidiary of the sponsor.

F&N said that, subject to market conditions, Frasers Centrepoint Asset Management intends to make an offering of units which will likely consist of, inter alia, an international placement to both institutional and other investors in Singapore as well as to the public.

In the event of an offering, the Reit intends to acquire a 99-year leasehold interest in three commercial properties - Alexandra Point, Alexandra Technopark as well as the office and retail component of Valley Point.

More details will be 'set out in the preliminary prospectus of FCOT which will be lodged with the MAS in due course, subject to market conditions,' the statement said.

In the long term, FCOT will also own and invest in commercial real estate in the Asia-Pacific region, including office and business space.

F&N, whose activities cover food and beverage, property and publishing, reported net profits of $96.6 million for the second quarter ended March 31, 2008, down 9.8 per cent from $107.1 million in the corresponding quarter the year before. Revenue came in at $1.14 billion, up 4.7 per cent from 2Q07.

However, for 1H08, net earnings rose 11.7 per cent to $205.2 million, up from $183.7 million in the corresponding period last year. This came on the back of a 12 per cent increase in revenue for 1H08, to $2.46 billion from $2.20 billion in the year-ago period. Earnings per share for H1 2008 was 14.8 cents, up from 14.6 cents.