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Frasers Centrepoint confirms Reit listing with Australian assets

FRASERS Centrepoint Limited (FCL) said on Monday that it is "reviewing and exploring the proposal for the establishment of a new real estate investment trust (Reit) to be listed on the main board of Singapore Exchange (SGX)" in response to an article by The Business Times on Monday.

It added: "The company wishes to update that the relevant applications have been made to the various regulatory authorities, including the SGX-ST and Monetary Authority of Singapore, and the proposed initial public offering and listing on the SGX-ST of the Reit which will at listing hold a portfolio of Australian logistics and industrial assets, is subject to, among other things, market conditions, the requisite regulatory and other approvals being obtained and the execution of definitive agreements by the relevant parties."

As a precautionary note, it added: "The company wishes to reiterate that no decision has been made as to whether the transaction will take place and there is currently no certainty that the company will proceed with the offering.

"An announcement will be made by the company in the event of further material development."

The company also requested to lift the trading halt on its shares.

The Business Times article on Monday had said that work is underway for FCL to spin off some of its Australian logistics and industrial assets into a Reit.

The Reit could be worth S$800-900 million, and the listing on SGX could be slated for June this year, barring unforeseen circumstances.

The new Reit will likely be called Frasers Logistics and Industrial Trust (FLT). A special feature of FLT is that investors can choose to receive their distributions in Australian dollars or Singapore dollars.