Why this Singaporean developer is investing in Thai industrial property
Why this Singaporean developer is investing in Thai industrial property
One of the biggest real estate deals by a Singapore developer in 2016
One of Singapore’s top real estate companies is acquiring a 40 percent stake in one of Thailand’s biggest industrial property firms.
Frasers Centrepoint Limited (FCL), through its Frasers Property Holdings (Thailand) subsidiary, is planning to pour THB13.23 billion (USD370 million) in Ticon Industrial Connection Public Company for a subscription of around 735 million new shares, priced at THB18 (USD0.50) per share. This will mark the largest deal for the Singaporean developer since it acquired the Malmaison Hotel du Vin hotel chain for SGD621 million (USD448 million) last year.
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The deal, opened via private placement, allows FCL to fan out from its huge interests in Thailand’s residential and commercial sectors, made possible through its stake in Golden Land Property Development. FCL is making the purchase with expectations of long-term, stable growth in Thailand’s industrial and logistics sectors, buoyed by the Thai government’s plans to roll out infrastructure investment programs worth USD98 billion in the next few years, The Straits Times reported.
With 18 industrial estates and 33 logistics locations, Ticon manages 2.5 million square metres of industrial space across Thailand. The company is the sponsor of three listed property funds and a listed real estate investment trust (REIT) in the country, with combined assets under management of approximately THB32.4 billion (USD907 million).
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Source: Property Report