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The move comes after the trust received a notice from Frasers Property of the latter’s intent to enter into an arrangement with a new unrelated co-investor that would reduce its interest in the 38-storey development.
Frasers Commercial Trust has declined an opportunity to participate as a co-investor with respect to the investment in Frasers Tower, a 38-storey Grade-A commercial development.
The move comes after the trust received a notice from Frasers Property of the latter’s intent to enter into an arrangement with a new unrelated co-investor that would reduce its interest in the 38-storey development.
“The notice was given pursuant to the right of first refusal agreement entered into between British and Malayan Trustees Limited acting in its capacity as trustee of Frasers Commercial Trust and Frasers Property dated 30 June 2009,” read an SGX filing.
Frasers Property gave the notice as the proposed investment from the co-investor would reduce its interest in the property to 50 percent from 100 percent currently.
Frasers Commercial Asset Management has “considered the opportunity and is of the view that the proposed investment on the proposed terms (including the proposed consideration), would not be accretive to the distribution per unit of Frasers Commercial Trust”.
Frasers Commercial Asset Management revealed plans to continue to explore opportunities from third parties and Frasers Property for the acquisition of commercial assets which meet its investment criteria in order to achieve long-term growth.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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