Frasers Property’s hospitality revamp
FPL is optimising the portfolio of its delisted hospitality Reit. Its CFO Loo Choo Leong explains what it will mean for investors to BT’s Ben Paul.
Frasers Property Limited (FPL) unveiled a S$2.1 billion optimisation plan in June for the hospitality assets held by the now-privatised Frasers Hospitality Trust. The market’s reaction has been muted, with FPL shares trading at what some analysts describe as an unjustifiably deep discount to the value of its underlying assets, unmoved even after the announcement. So why has the market not responded, and what is FPL actually doing about a share price that has stayed stubbornly low?
In this episode of Mark To Market, a BT Correspondents podcast, Ben Paul speaks with Loo Choo Leong, chief financial officer of FPL, for a direct conversation about the mechanics of the deal, the governance safeguards in place and why FPL is trading at less than half its net asset value despite years of disciplined capital recycling.
Why listen
- Selling to the controlling shareholder, explained Loo walks through the governance process behind the deal, including why conflicted directors abstained and why TCCGI will not vote at the EGM.
- Why the market hasn’t rewarded the deal yet The transaction was negotiated above both independent valuations and the implied privatisation value. Loo explains why share prices do not always reflect long-term fundamentals immediately.
- Reversing a decade of declining sector ROE From redeploying capital in Australia to launching Dunearn House and joining the Bayshore Drive consortium, Loo outlines the discipline behind the numbers.
- What The Centrepoint and Valley Point could unlock Analysts see up to 50 cents per share in potential RNAV uplift. Loo is cautious about resting the investment case on any single catalyst and explains why.
The gap between FPL’s share price and its underlying value remains an open question. Loo makes the case for why it should close. Listen now.
Discover more episodes at bt.sg/podcasts. Got feedback? Email us at btpodcasts@sph.com.sg.
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Written and hosted by: Ben Paul (benpaul@sph.com.sg)
With Loo Choo Leong, chief financial officer, Frasers Property Ltd
Edited by: Nicole Teo & Claressa Monteiro
Produced by: Ben Paul, Nicole Teo & Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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BT Correspondents brings together some of The Business Times’ most trusted columnists in a single series. Featuring Mark to Market, WealthBT, TransportBT, and PropertyBT, weekly episodes deliver expert analysis and clear perspectives on stocks, wealth, mobility, and real estate. It is essential listening for professionals who want context, clarity, and depth.
