Stocks to watch: Frasers Property, ESR-Reit, Foundation Healthcare

[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Wednesday (Jul 8):

ESR-Reit : The real estate investment trust (Reit) is set to buy five freehold logistics properties in Melbourne, Australia, for A$276.8 million (US$192.4 million). The acquisition will increase its distribution per unit by 4.3 per cent on a pro forma basis, the Reit’s manager said on Tuesday. The properties will be acquired from Frasers Property. The manager noted that the Australian logistics sector continues to benefit from favourable long-term structural tailwinds. Units of ESR-Reit ended 1.3 per cent or S$0.03 higher at S$2.34 before the announcement.

Frasers Property : The divestment of the five properties to ESR-Reit is part of its ongoing active portfolio management initiatives, said Frasers Property on Tuesday. The divestments are not expected to have a material effect on its net asset value per share and earnings per share for the current financial year, it added. Its Australian unit also is set to sell a retail centre for A$248 million (US$172.2 million) to PGIM’s Real Estate Investment Group and Assembly Funds Management. Shares of Frasers Property fell 0.9 per cent to close S$0.01 lower at S$1.09 before the announcements.

Foundation Healthcare: Shares of Foundation Healthcare will debut on the Singapore Exchange’s (SGX) mainboard on Wednesday. The initial public offering of Foundation Healthcare was 3.8 times subscribed, the company said on Tuesday. The Temasek-backed company said on Jul 1 that it was seeking to raise S$242 million on SGX, with an offer of 162.6 million shares at S$0.76 apiece.