Frasers Property, controlled by Thai billionaire Charoen Sirivadhanabhakdi, has launched a renewed bid to fully acquire Frasers Hospitality Trust in a deal valuing the real estate investment trust (REIT) at S$1.37 billion (US$1.1 billion).
The group, along with the Sirivadhanabhakdi family, already owns just over 60% of the trust’s units and is now offering S$0.71 per unit for the shares it does not yet hold.
The latest offer represents a 6.8% premium to Tuesday’s closing price. Units of the REIT climbed 4.5% on Wednesday to S$0.695, marking their highest level since early September 2022.
A previous privatisation attempt in 2022, pitched at S$0.70 per unit, failed to secure enough shareholder support.
However, analysts say the latest proposal stands a stronger chance of success.
Vijay Natarajan, an analyst at RHB Bank Singapore, pointed to the improved offer price, a softening hospitality outlook, and the REIT’s small asset base as factors likely to sway investors.
Frasers Hospitality Trust, which listed 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.
Singapore’s REIT sector has been under pressure since the pandemic, with rising interest rates, macroeconomic headwinds, and currency volatility weighing on investor sentiment.
“Hospitality trusts are inherently exposed to more business volatility due to shorter stays and periodic capital expenditure for asset enhancement initiatives,” the companies said in a statement.
Frasers Property added that the trust’s growth remains constrained by external economic challenges and internal structural limitations, which may continue to impact its ability to raise distributions and net asset value.
