Frasers Property creates new platform to focus on growing network of capital partners

FRASERS Property has established a new group corporate function, Frasers Property Capital, to team up with capital partners on new projects, in order to pursue investment opportunities while sharing risks with like-minded joint venture partners.

With over 25 years of experience in real estate investment management, Wong Ping has been tapped to lead Frasers Property Capital as chief investment officer. Prior to joining Frasers in July, she held senior leadership positions with CBRE Investment Management, and Allianz Real Estate Asia Pacific. Wong reports to Frasers’ group chief corporate officer, Chia Khong Shoong.

In an interview with The Business Times, Chia said: “Real estate is a capital intensive industry. Increasingly, projects seem to get larger and larger in the different markets that we operate in. It does make sense to share some of the risk with capital partners who have similar long-term aspirations and strategic objectives as us.” 

Potential partners could include sovereign wealth funds, institutional investors, pension funds and insurers.

Frasers Property Capital, which provides an opportunity for the group to diversify funding sources, will also better position the group to navigate headwinds in the current environment, he added.

Chia highlighted that Frasers has grown its business in a very deliberate manner over the last eight years, with a focus on building strong platforms in the markets it operates in. “We’ve reached a stage where these platforms can add value in significant ways by working for third party capital as well,” he added, pointing out that partners could leverage on Frasers’ exposure to various asset classes as well as its on-the-ground market knowledge and capabilities in its different markets.

Similarly, Frasers Property Capital’s growth will also be carried out in a deliberate fashion. “Growth will be opportunity led,” he went on to say. “The key for us is bringing in the right partners for the right opportunity. It’s not about growing assets under management (AUM) for the sake of AUM.”

According to Chia, Frasers Property Capital will continue to focus on core asset classes as well as its existing markets. Frasers’ business units operate across five asset classes - residential, retail, commercial & business parks, industrial & logistics as well as hospitality - with a footprint in Southeast Asia, Australia, Europe and China. As at Mar 31, 2022, Frasers had S$40.7 billion worth of assets across its portfolio.

And while Frasers has teamed up with capital partners in the past, Frasers Property Capital will enable more co-ordinated conversations to take place and bring the right partners to the table, Chia reckons. In January this year, for instance, Frasers’ Australian unit tied up with diversified group Mitsui Fudosan on MAC Residences, a 269-unit development in Sydney.

Chief investment officer, Wong, said: “The group has earned its reputation by purposefully growing its business, where we have accumulated local and sector knowledge with the support of our tenants and customers. This approach is complementary to how we intend to scale and align sustainably with our partners.”

Shares of Frasers Property closed at S$1.04 on Monday (Aug 22), down S$0.01 or 1 per cent.