FRASERS Property's latest rights issue will provide much needed cash to the listed entity, but its value to shareholders, existing and potential, is questionable.

The company's non-underwritten 37-for-100 rights issue aimed at raising net proceeds of up to S$1.28 billion is also lacking in specifics.

The fundraising exercise may be unsurprising given the group's gearing of 0.99 time at end-December, although the ratio would fall with the divestment of its 63.1 per cent stake in Asia RetailFund to Frasers Centrepoint Trust.