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Frasers Property raises stake in co-working startup JustCo for US$12.4m

FRASERS Property, through its wholly-owned subsidiary, has bought additional shares in JustCo Holdings for US$12.4 million, the developer said in a filing on Wednesday night. The move raises its stake in the co-working space operator to 22.2 per cent - held through Frasers Property Ventures I and Frasers Property Ventures II (FPL VII).

The share acquisition was made by FPL VII, and the resulting 22.2 per cent stake does not take into account the proposed investment by Daito Trust Construction Co announced on Nov 28.

The purchase sum was arrived at on a willing-buyer, willing-seller basis after taking into account Frasers Property's book value of its existing investment in JustCo Holdings and JustGroup Holdings as at Sept 30, 2019.

The two investee companies have amalgamated with JustCo Holdings being the surviving entity. Assuming the amalgamation had been completed on Sept 30, 2019, the value of the sale shares would be US$15.5 million.

Frasers Property said the transactions are not expected to have any material impact on its consolidated net tangible assets per share and consolidated earnings per share for the current financial year.

The counter closed at S$1.71 on Wednesday, down one Singapore cent or 0.6 per cent on a cum-dividend basis before the announcement.