The financialisation of Singapore’s property industry took another step on Monday as Frasers Property announced the creation of a new business unit aimed at raising and managing capital from institutions to invest in the company’s property initiatives. .
The formation of Frasers Property Capital was announced just over a year after shareholders of CapitaLand, which had been Southeast Asia’s largest public developer, voted in favor of the privatization of the giant based in Singapore, as the company began to focus on revenue from managing third-party investments in real estate strategies.
To lead its private investment management division, Frasers has recruited Wong Ping, a former CBRE Investment Management executive, to serve as chief investment officer, the firm said. in a version. Based at the Singapore head office, Wong joined Frasers Property in July and reports to Managing Director Chia Khong Shoong. Given the capital-intensive nature of the real estate sector, the group will need a strong capital base and diversified sources of capital to execute on its strategic priorities, Chia said.
“Forming Frasers Property Capital now to work with aligned partners, as part of our broader asset and capital management strategy, is a natural evolution of our journey,” he said. “We look forward to seeing Ping lead and deepen our relationships with long-term financial partners, working alongside our business units.”
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In establishing his fund management business, Frasers, controlled by Thai liquor baron Charoen Sirivadhanabhakdi through his TCC Group, looked to a seasoned fund manager. Wong has more than 25 years of experience managing real estate investments, and her most recent role was as head of indirect investments in Asia at CBRE IM, which she left in June after more than four years.
Prior to establishing this private fund management business, Frasers was already active in the management of real estate investment trusts, with the company currently sponsoring three REITs, Frasers Centrepoint Trust, Frasers Hospitality Trust and Frasers Logistics and Commercial Trust.
From 2008 to 2017, Wong worked in fund selection and capital markets as one of the pioneer members of the Asia-Pacific team at Allianz Real Estate. From 2002 to 2007, she served as Vice President of the APAC investment management team at PGIM precursor, Pramerica Real Estate Investors.
A Commerce graduate of the University of Southern California in 1996, she spent the early part of her career in various positions in the Singapore offices of JLL, DTZ (now part of Cushman & Wakefield) and Edmund Tie .
Wong said she looked forward to emphasizing capital partnerships in geographies and sectors where Frasers Property has developed strong capabilities.
“The group has earned its reputation by deliberately growing its business where we have built up local and industry knowledge with the support of our tenants and customers,” she said. “This approach is complementary to how we intend to evolve and sustainably align with our partners.”
The privatization of FHT is looming
The addition of Wong comes as Frasers Property seeks to take private SGX-listed Frasers Hospitality Trust in an all-cash deal that values the REIT at S$1.35 billion (S$970 million). of dollars).
Also the trust’s sponsor, Frasers Property is offering S$0.70 in cash per share to take over the hotels and serviced apartments trust, in line with a recent strategic review conducted by the REIT’s independent trustees, citing the takeover bumpy industry, growing market uncertainties globally and the trust’s small size relative to its peers as factors precipitating the buyout.
The proposal requires the approval of the owners of at least 75% of the shares of the trust at a meeting of the plan which should take place by the end of this month. If the proposal is approved by investors and regulators, the trust would be delisted from the Singapore Stock Exchange in the fourth quarter.
Comprised of 14 hotels and serviced residences in Asia, Australia and Europe, FHT’s portfolio is valued at S$2 billion and includes the 406-room InterContinental Hotel at Bugis Junction in Singapore and a 380-unit Novotel in Melbourne. The trust also owns Fraser Suites serviced apartment complexes in Australia, Singapore and the United Kingdom.