FRASERS Centrepoint Limited (FCL) said that the Singapore Exchange (SGX) has issued its eligibility-to-list (ETL) letter for the proposed listing of a new real estate investent trust (Reit) named Frasers Logistics & Industrial Trust (FLT).
The Reit will hold a portfolio of Australian industrial assets.
But FCL reiterated 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".
"The receipt of the ETL letter is only one of the requirements which have been met to enable the company to proceed with the offering when it considers it appropriate to do so," it said in a regulatory filing posted on Monday night.
The offering is still subject to, among other things, market conditions; the receipt of all requisite regulatory approvals; and the execution of definitive agreements by relevant parties.
With the establishment of FLT, FCL will hold about 22.5 per cent of units post-listing.
SGX has also granted FCL the waiver of a rule in the listing manual that requires FCL to seek shareholders' approval for the proposed divestment of the FLT Portfolio to FLT.
FCL has applied to SGX for a waiver on the premise that the proposed divestment is not a disposal of the core business (or a substantial part of its core business) of FCL and does not result in a material change to the nature of its business.
"FLT is intended to serve as a strategic platform focused on investing in logistics and industrial assets, allowing the company to be further aligned with its Reit strategy; and as the company's intention is to hold approximately 22.5 per cent of units and to wholly own the FLT manager, the proposed FLT listing will enable the company to benefit from the recurring distributable income from the company's unit holdings and earning a sustainable and steady fee income stream from the company's continued management of FLT," FCL said.
FCL has injected over S$1.2 billion worth of assets into the other Reit and stapled group that it manages - Frasers Centrepoint Trust, Frasers Commercial Trust and Frasers Hospitality Trust.