http://www.straitstimes.com/premium/...ategy-20131029

Frasers Centrepoint outlines strategy

It aims to sell 1,000 homes a year in Singapore as it splits from F&N

Published on Oct 29, 2013

By Jonathan Kwok


THE real estate unit that will be spun off from parent company Fraser & Neave (F&N) and listed separately on the Singapore Exchange (SGX) outlined its strategy and financial goals yesterday.

Frasers Centrepoint (FCL) aims to sell 1,000 homes a year in Singapore and a further 1,000 overseas.

It also aims to generate profits of at least $200 million from Singapore residential projects while increasing the contribution from overseas developments to that level as well over time.

"Whilst the residential development business can be volatile, our approach of driving for high rates of pre-sales and diversifying our portfolio across multiple projects and geographies gives good visibility over our development income over the next 12 to 24 months," said FCL's introductory document released yesterday.

F&N, a drinks, publishing and property conglomerate, also released a circular to its own shareholders, stating that they will get two FCL shares for each F&N share owned.

FCL shares will be listed on the SGX by way of an introduction. This means neither F&N nor FCL will receive cash proceeds from the listing.

A meeting for F&N shareholders to vote on this will be held on Nov 13 but no date has been set for the listing.

The introductory document said FCL's net profit would have been $488.82 million for the nine months to June 30 if it were a separate company. Revenue would have been $1.083 billion.

FCL's projects include the executive condominium Twin Fountains in Woodlands, which it is jointly developing with Lum Chang. The diversified company also has holdings and management contracts in serviced apartments, shopping malls and office buildings.

Thai tycoon Charoen Sirivadhanabhakdi won control of F&N in January after seeing off a challenge by OUE, formerly known as Overseas Union Enterprise.

Parties linked to Mr Charoen now own about 90 per cent of F&N, Bloomberg filings show.

Some F&N shares will be sold so the stake will fall to 88 per cent or less, said the introductory document.

FCL needs a public float of at least 12 per cent before it can list under SGX rules.

The proposed proportional distribution means F&N and FCL will both have the same shareholders holding exactly the same percentage each - so the Thai parties must cut their F&N holdings before the FCL listing, to 88 per cent or less.

F&N said on Sunday that the SGX had given the go-ahead for the listing. F&N shares closed 11 cents or 1.9 per cent up at $5.79 yesterday.

[email protected]