(Reuters) -Thai business magnate Charoen Sirivadhanabhakdi’s Frasers Property has made a second attempt to take over its hospitality real estate investment trust (REIT) at a valuation of S$1.37 billion ($1.1 billion).
The parent company has offered S$0.71 apiece for every share it does not already own to shareholders of Frasers Hospitality Trust, according to a joint statement on Wednesday.
The offer represents a 6.8% premium to the unit’s last closing price.
The Singapore-based developer made a buyout attempt in 2022, offering S$0.70 per share but failed to get the required 75% shareholder support.
The billionaire and his family together control more than 60% of the REIT’s shares, according to data compiled by LSEG.
Singapore’s REIT sector has faced worries since the COVID-19 pandemic due to issues over rising interest rates, macroeconomic uncertainties and a weaker foreign exchange rate against the local dollar.
“Hospitality trusts are inherently exposed to more business volatility due to shorter stays and periodic capital expenditure for asset enhancement initiatives,” the companies said.
Frasers Property also added that the REIT would remain constrained by both macroeconomic challenges and structural limitations, potentially hindering its ability to grow distributions per security (DPS) and net asset value (NAV).
The REIT, which debuted on the Singapore Exchange in 2014, manages a portfolio of 14 hospitality assets—including hotels and serviced residences—across nine cities in Asia, Australia, and Europe.
“While our portfolio has demonstrated resilience, sustained growth has been hampered by persistent FX headwinds, inflationary cost pressures, and broader geopolitical developments – from Brexit to escalating trade tensions and the evolving global tax regime,” said Eric Gan, CEO of Frasers Hospitality Trust’s manager.
Sirivadhanabhakdi, who also owns Thai Beverage, announced plans to conduct a share swap deal under which Southeast Asia’s biggest brewer would divest its real estate assets.
($1 = 1.3012 Singapore dollars)
(Reporting by Sneha Kumar and Kumar Tanishk in Bengaluru; Editing by Mrigank Dhaniwala and Janane Venkatraman)
