Frasers Centrepoint Said to Weigh Australand Property IPO

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  • Offering may take place this year, seek at least $500 million
  • Frasers acquired Australand for A$2.6 billion in 2014

Frasers Centrepoint Ltd. is considering listing a real estate investment trust in Singapore backed by Australian office and industrial properties, people with knowledge of the matter said.

The Singapore-based company could sell units in the REIT, backed by assets from its A$2.6 billion ($1.8 billion) purchase of Australand Property Group, as soon as this year, depending on market conditions, the people said. The offering could seek at least $500 million, the people said, asking not to be named as the information is private.

Frasers Centrepoint’s offering could provide a boost to the Singapore bourse, which hosted just $366 million of first-time share sales last year, the lowest in at least a decade, data compiled by Bloomberg show. An index tracking 32 property trusts listed in the city-state has fallen 15 percent over the past year, compared with a 26 percent drop in the benchmark Straits Times Index.

Frasers Centrepoint is currently reviewing and exploring the proposal of establishing a REIT to be listed in Singapore as one of the various options to optimize and unlock value from its assets, including Australian industrial assets, the company said in a statement to the Singapore stock exchange Wednesday. The considerations and discussions are still ongoing and no decision has been made as to whether the transaction will take place, according to the statement.

Frasers Centrepoint, controlled by Thai billionaire Charoen Sirivadhanabhakdi, acquired Australand Property Group in 2014. The company’s Australian operations were its biggest revenue contributor in the year through September 2015, accounting for 44 percent of sales, data compiled by Bloomberg show.

The Singapore company, which had S$23.1 billion ($16.1 billion) of total assets last year, develops and invests in property in Singapore, Australia and China, according to its website. It has already formed REITs in the hospitality, commercial and retail sectors.