Frasers Property shareholders approve S$2.1 billion hospitality portfolio revamp
The transaction is expected to be completed by end-FY2026
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[SINGAPORE] Shareholders of real estate giant Frasers Property approved at a Friday (Aug 28) extraordinary general meeting a proposed portfolio optimisation of its hospitality assets under Frasers Hospitality Trust (FHT), which was taken private in 2025.
Some 99.07 per cent of the shareholders present and voting, representing more than 159 million shares, signalled their approval of the resolution. The remaining votes, representing nearly 1.5 million shares, were against the move.
The transaction is expected to be completed by the end of FY2026. Frasers Hospitality CEO Eu Chin Fen said that the group will now work towards implementation of the revamp, adding that this includes the receipt of the necessary regulatory and third-party approvals.
“Our shareholders have given us a clear mandate,” said Eu. “We can now move forward with the next phase of our hospitality strategy – (one that) creates a more focused and capital-efficient hospitality platform that retains our scale and recurring income base.”
Frasers Property’s group chief financial officer Loo Choo Leong described the approval as an “important milestone” in the group’s capital allocation strategy.
“The transaction unlocks capital from mature assets, enhances the group’s financial flexibility and gives us full ownership of Fraser Suites Singapore, facilitating the redevelopment of the wider Valley Point site,” he added.
“Together, these outcomes position us to pursue value creation opportunities and improve long-term shareholder value.”
Thai investment holding and real estate company TCC Assets, which holds more than 3.4 billion ordinary shares representing about 86.9 per cent of Frasers Property’s issued share capital, abstained from voting.
The Thai group is an associate of business magnate Charoen Sirivadhanabhakdi and the estate of his late wife Khunying Wanna Sirivadhanabhakdi. Both are controlling shareholders and interested persons in relation to the resolution, Frasers Property noted.
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TCC Group Investments (TCCGI), which holds 70 million ordinary shares or 1.78 per cent of Frasers Property’s issued share capital, also abstained from voting. It is equally held by Charoen’s five children, two of whom are regarded as associates and interested persons.
FHT was taken private in October 2025 through a trust scheme of arrangement. Its assets are currently held through two private sub-trusts: Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust.
Frasers Property first announced in June the proposed revamp.
It noted in an Aug 6 circular that the FHT properties will be split into four categories.
The first is for mature, lower-yielding stabilised assets; these have a total value of S$1.1 billion. Frasers Property will divest all of its 63.28 per cent stake in these assets to TCCGI.
The second category involves assets with the potential to achieve higher yield via value-enhancement initiatives. Frasers Property will continue to retain an effective 49.95 per cent exposure in these assets, which are valued at S$0.4 billion. TCCGI will hold the remaining 50.05 per cent.
The third is made up of non-core assets, valued at S$0.3 billion. These assets are effectively not transacted and will continue to be held under FHT or the New AU Trust for future opportunistic divestment.
The fourth category is the asset for potential redevelopment, valued at S$0.3 billion, which will be divested to Frasers Property to enable the redevelopment of the whole site on which Valley Point is situated.
On a pro forma FY2025 basis, the group expects the optimisation to raise its earnings per share by 3.4 per cent, its net asset value per share by 1.3 per cent and its return on equity by 0.1 percentage point.
Net gearing is expected to fall 3.3 percentage points after the transaction is completed.
Shares of Frasers Property fell 1 per cent or S$0.01 to close at S$1.01 on Friday, before the shareholders’ approval was announced.
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