FRASERS Hospitality Trust (FHT) will not be acquiring interests in Capri by Fraser at Changi City from its sponsor, Frasers Property, its managers said in a bourse filing on Tuesday (Mar 19).
The managers said they received a notice from Frasers Property of the latter’s intention to divest its interest in Capri by Fraser, Changi City to a third party.
The notice was given as part of the right of first refusal letter issued by Frasers Property, in favour of Frasers Hospitality Real Estate Investment Trust (Reit)’s trustee and Frasers Hospitality Trust Management’s trustee-manager.
FHT is a stapled group comprising Frasers Hospitality Reit and Frasers Hospitality Business Trust.
The managers said acquiring the property does not meet the Reit’s prevailing investment strategy, and thus they have decided not to exercise its rights.
“The managers will continue to explore opportunities from both the sponsor and third parties which are in line with FHT’s investment strategy,” they said.
The property is under JTC lease with 45 years remaining, and consists of a 12-storey hotel operating under the “Capri by Fraser” brand.
Stapled securities of FHT closed flat at S$0.455 on Tuesday, before the announcement.
