Frasers Property scraps plans for JV involving investment, bridging loan

FRASERS Property on Thursday (Dec 23) said that its joint-venture (JV) for a potential investment in a land has fallen through.

Last month, the multinational property company said its wholly-owned unit had entered a framework agreement with an unnamed JV partner to participate in a potential investment in land. Fraser's subsidiary, Suzhou Sing He Ziang Management Consultancy (SHX), will also provide funding of about 1.6 billion yuan (S$337 million) for the investment.

SHX was to acquire an indirect interest of up to 40 per cent in the JV and extend an interest-bearing bridging loan of some 1 billion yuan for a term of up to Apr 1, 2022, which will be utilised by the JV partner towards payments in relation to the proposed investment. The loan bears an interest rate of 8 per cent per annum.

Frasers added in a bourse filing on Thursday that SHX has received a full refund and repayment under the earlier framework agreement and loan agreement.

The counter closed flat at S$1.14 on Thursday.