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Frasers Centrepoint in talks to acquire assets in UK but outcome not certain

FRASERS Centrepoint said it is in discussions with "certain vendors" for acquisition opportunities in the United Kingdom but there is no certainty that a transaction could materialise.

The mainboard-listed firm said this on Friday in reference to an article published in the UK that the company was in talks to acquire a business park portfolio located there.

Real estate data and news portal EGi had reported on Thursday that Frasers Centrepoint was in talks to buy a business park portfolio in the UK for £900 million (S$1.6 billion) from Oaktree Capital Management and Patrizia.

According to the report, the assets have been on the block for two years.

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A deal with Frasers would mark a proposed sale of the largest single asset in the portfolio - Winnersh Triangle near Reading, Berkshire - "unseated", it said, referring to the period of exclusivity for the proposed sale of Winnersh Triangle to Capreon, a new company backed by the Noe family, that has ended although discussions were still ongoing.

"It is understood that because of the competition, Frasers is being put under pressure to undertake a deal quickly, which could be completed in the next two weeks," reported EGi.

In Friday's announcement, Frasers Centrepoint clarified that it was continually reviewing acquisition opportunities to enhance shareholder value, including potential opportunities to acquire assets overseas.