It received a notice from Frasers Property of its intentions to enter into an arrangement with an unrelated co-investor.
Frasers Commercial Trust (FCOT) has rejected an opportunity to participate as a co-investor in the investment of 38-storey Grade A commercial development Frasers Tower, a filing with the Singapore Exchange (SGX) revealed.
FCOT received a notice from Frasers Property of the latter’s intentions to enter into an arrangement with an unrelated co-investor.
The notice was given pursuant to the right of refusal agreement entered into between British and Malayan Trustees acting in its capacity as the trustee of FCOT and Frasers Property in 2009.
“Frasers Property gave the notice to the trustee as its interest in the property will reduce from 100% to 50% by way of new equity injection from the co-investor,” FCOT explained. “In this regard, Frasers Commercial Asset Management is of the view that the proposed investment on the proposed terms would not be accretive to the distribution per unit (DPU) of FCOT.”
Frasers Commercial Asset Management said that it will continue to explore opportunities from both Frasers Property and third parties for the acquisition of commercial assets that meet its investment criteria to achieve long-term growth.
Do you know more about this story? Contact us anonymously through this link.