Singapore’s Frasers Property to take hospitality trust private By Reuters

(Reuters) – Singaporean investment holding firm Frasers Property said on Monday it will take its subsidiary, Frasers Hospitality Trust, private in a deal valuing the real estate investment trust (REIT) at S $ 1.35 billion ($ 970.46 million).

Frasers Property will buy shares of the REIT, which manages hotels and serviced residences across Asia, Australia and Europe, at S $ 0.70 apiece, a 6.1% premium to their last close.

Frasers Hospitality Trust is smaller in scale compared to its peers in a market where scale and size are essential to liquidity and growth, Frasers said, adding that its size has limited its ability to reap the benefits of a continued listing.

It has also found it difficult to translate its property acquisitions into higher distributions to unitholders, Frasers added.

($ 1 = $ 1,3911 Singapore dollars)