Fragrance plans to list Aussie business on Catalist

Singapore

FRAGRANCE Group has plans to spin off its property business in Australia and list it on Singapore's Catalist board.

The property developer's share price rose to an intra-day high of 24.5 Singapore cents on Friday, before closing at 24 cents - up 1.5 cents or 6.7 per cent.

It said in an announcement that the Singapore Exchange (SGX) has voiced no objections to the proposed spin off, but reserves the right to amend the decision as and when new information is provided.

The group has appointed SAC Capital to advise it on the proposed restructuring, which is in its preliminary stages.

Fragrance added that the proposed restructuring is dependent on the outcome of preparatory work, getting necessary approvals and market conditions. Therefore, there is no assurance that it will materialise in due course.

The group entered the Australia market this year, and has so far acquired four plots there - two in Melbourne, one in Perth and one in Hobart, the capital of Tasmania.

All are slated for redevelopment, and work on the projects is expected to start early next year.

The Melbourne and Perth plots will be redeveloped into mixed developments for residential and commercial purposes; the Hobart plot will be a commercial project.

Fragrance, which is also involved in the investment and management of hotel properties, was listed in February 2005 on SGX.