Frasers Property unit to sell entire stake in China property

Published Thu, Jan 21, 2021 · 08:24 PM

FRASERS Property announced on Thursday that its subsidiary is looking to sell its stake in Beijing Fraser Suites Real Estate Management for 1.6 billion yuan (S$327.5 million).

Its subsidiary Excellent Esteem has entered into a sale and purchase agreement with a joint venture (JV) company established by Tishman Speyer RMB Funds and Shanghai Dowell Trading, to dispose its entire shareholding interest in Beijing Fraser Suites.

Beijing Fraser Suites is a wholly owned subsidiary of Excellent Esteem, and owns an apartment project named Beijing Fraser Suites International Apartment in China.

The proposed divestment is in the ordinary course of business of the company, said Frasers Property in its regulatory update.

The purchase price, which will be satisfied in cash, was arrived at after arm's length negotiations on a willing buyer and willing seller basis, determined based on the assets and liabilities of Beijing Fraser Suites as at Dec 31, 2020. The JV company has paid 20.5 million yuan to Excellent Esteem as earnest monies pursuant to a letter of intent signed by the parties.

Assuming that the proposed divestment had been completed on Sept 30, 2020, the net tangible asset per share will be S$2.37, up from S$2.34 before the divestment. Earnings per share, after fair value change and exceptional items, will be 6.19 Singapore cents from 3.81 Singapore cents.

A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

The financial effects are shown for illustrative purposes and do not necessarily reflect the exact future financial position and performance of the group immediately after the disposal, said Frasers Property.

Shares of Frasers Property ended Thursday at S$1.28, up S$0.01 or 0.8 per cent.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Companies & Markets

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here