Frasers Property of Singapore Will Take Its Hospitality Trust Private

Frasers Property, a Singaporean investment holding company, announced on Monday that it will privatize its subsidiary Frasers Hospitality Trust in a transaction that values the real estate investment trust (REIT) at S$1.35 billion ($970.46 million).

Frasers Property will purchase shares of the REIT, which runs hotels and serviced apartments across Asia, Australia, and Europe, at S$0.70 per share, a premium of 6.1% over their latest closing price.

Frasers Hospitality Trust is smaller than its competitors in a field where scale and size are crucial for liquidity and growth, the company claimed, adding that its size has hindered its ability to reap the benefits of a prolonged listing.

Frasers said that it had struggled to convert its property acquisitions into larger payouts to unitholders.