Frasers’ stakein Allco Reit
Frasers Centrepoint has completed its acquisition of an 18-per-cent stake in Allco Reit and all of Allco Singapore, which manages the property trust. Allco Reit will now be renamed Frasers Commercial Trust following the $180-million deal.
Frasers Centrepoint has now dropped plans to list its own separate commercial property trust. Instead, it will offer its current portfolio of commercial assets, worth about $700 million, as a potential pipeline for the acquired trust to buy.
“We have commenced a strategic review of the properties in the portfolio, which is expected to take three months,” said Frasers Commercial Trust chief executive Low Chee Wah.
“We will be evaluating the feasibility of asset enhancement plans that were announced for the Singapore properties earlier. In the near-term, management will focus on active asset management to improve the property yields of the current portfolio.”
Frasers Commercial Trust has commenced discussions with banks to refinance its existing loans.
Mr Lim Ee Seng, chief executive of Frasers Centrepoint, said: “We are committed to this trust and will dedicate its resources to strengthening its capital structure, enhancing the property portfolio and grow it further.”
Source : Today - 15 Aug 2008
Loading ...
Post a Comment
Tell me a bit about yourself; who you are, where you're from, what information you would like to see on this site. As I continue to provide you with Singapore property happenings, your feedback will encourage me to post more frequently. Thank you.