Frasers Property (formerly: Frasers Cpt (FCL))

[greengiraffe]

Was reviewing Fraser Hospitality's assets and that of TCC Land's international portfolio alongside of the rumoured purchase of Sdyney Sofitel Wentworth, the purchase of the hotel may not be at odd with the both the related group's objectives.

In fact, the proposed hospitality REIT by FCL may have combined characteristics of CDL H REIT and Ascott REIT.

Anyway, hope to get more updates from interim results out tomorrow.

Vested
GG

Not sure if anyone has posted the link:

http://www.tccland.com/hotel.html

Interested investors can have a bird's eye view of the hotels / service residence holdings outside Thailand that TCC Land owns:

CAMBODIA Siem Reap Le Meridien Angkor, Siem Reap
LAOS Luang Prabang The Grand Luang Prebang
VIETNAM Hanoi Melia Hanoi
SINGAPORE InterContinental Hotels & Resorts, Singapore
CHINA Sakura Hotel, Kunming
Bank Hotel, Kunming
JAPAN Kobe ANA Crowne Plaza Hotel
MALAYSIA Kuala Lumpur Westin Hotels & Resorts
AUSTRALIA Novotel Rockford Darling Harbour
InterContinental Adelaide, Australia
Hyatt Hotel Canberra - A Park Hyatt Hotel, Australia
EUROPE London, UK The Park International Hotel
NORTH AMERICA New York, USA Plaza Athenee New York

Vested
GG

FCL gave more hints on the initial hospitality assets that could be anchoring its upcoming hospitality trusts.

In its maiden annual report pages 197 - 200, one can deduce by differentiating between completed investment properties and completed properties held for sale.

Under completed properties held for sale, I can only manage to trace down the following hospitality assets:

i) 80.5% held Fraser Suites Sydney with a (100%) book value of A$99m

ii) 87.5% held Fraser Suites Perth with a (100%) book value of A$125M

iii) 50% held Capri By Fraser, Changi City with a (100%) book value of S$101m. Viva REIT acquired the 251-room hotel in UE Bizhub East for a per key valuation of S$550k. Using similar benchmark, the 303-room Capri By Fraser, Changi City should be worth around $166.65m.

As the previously rumoured listing market cap of US$473m or S$600m for the hospitality reit, the classification of the above 3 assets sounds about right and TCC Assets may just need to contribute another 1 to 2 more assets for the initial listing assuming little gearing at the inception of the hospitality reit.

Vested
GG

http://infopub.sgx.com/FileOpen/Frasers%...leID=20041

I did further research on FCL on the pending listing of Fraser Hospitality Trust. On page 59 of the maiden annual report, the net book value of hospitality assets are worth in excess of S$1.6bn. The entire division chalked up EBIT of $70m possibly implying an unleveraged yield of around 4.3%.

Based on previous media speculation of the float size, it appears that the intended hospitality trust could have a very healthy pipeline of assets (currently FCL already has more than 3 times the speculated float value) in the years ahead once the relatively immatured assets are being nurtured to maturity. The pipeline may be enhanced with the indicated participation of unlisted parent TCC Assets.

Other catalysts for FCL going forward includes:

i) further asset light strategies on its retail mall assets - speculated next up to be 50% owned Changi City Point
ii) interim dividends payable based on its track record of unlisted entity. FCL paid an adjusted 6.9 cents DPS last years - a 50% payout ratio
iii) streamlining of F&N and FCL holdings between TCC and Inter Bev (Thai Bev)
iv) eventual improvement in free float of FCL that will enhance institutional participation and potential inclusion in major stock indices.

Vested
GG

Recap:

http://infopub.sgx.com/Apps?A=COW_CorpAn...7700387B4B

6 Feb 14 - "Thai tycoon Charoens FCL eyes $473 mln hospitality REIT in Q2 sources".

http://infopub.sgx.com/FileOpen/FCL-Tham...eID=286023

12 Mar 14 - RECEIPT OF ELIGIBILITY-TO-LIST FOR PROPOSED REIT LISTING

http://infopub.sgx.com/FileOpen/Frasers_...eID=288920

31 Mar 14 - Marking Sweet 16 with 92

Facts: PBIT for Hospitality S$69.7m or 12% of total group PBIT for year ending 30 Sept 2013.

With financial engineering for the floating of REIT and with the potential participation of TCC Group, it appears that another platform for value creation will soon be established.

Vested
GG