* Picks DBS, HSBC, Morgan Stanley, UOB for IPO-sources
* Marks first step toward merging of Charoen, FCL property
* Listing comes after F&N, FCL split last month
(Adds detail on FCL properties, valuation)
By Saeed Azhar
SINGAPORE, Feb 6 Frasers Centrepoint Ltd (FCL)
, a company controlled by Thai billionaire Charoen
Sirivadhanabhakdi, is looking to raise up to S$600 million ($473
million) through the listing of a hospitality real estate
investment trust in Singapore in the second quarter, sources
This listing would mark the first step toward the merging of
property assets of Charoen's business empire, which operates
under the Singapore-listed FCL and his TCC Group, after the Thai
tycoon won control of the drinks-and-property conglomerate
Fraser and Neave in an $11 billion deal last year.
Charoen's fortunes appear better than rival businessman
Dhanin Chearavanont, whose retail firm CP ALL has
become Asia's most indebted food retailer after an expensive
acquisition funded by a large foreign currency
FCL's planned real estate investment trust would hold
serviced residences owned by F&N and other assets such as the
InterContinental Hotel in Singapore, which Charoen's TCC Group
owns, sources said.
FCL, which split from Fraser and Neave into a
separately listed property-focused company, has a market value
of $3.2 billion, while Fraser and Neave is valued at $3.8
F&N returned S$4.73 billion to shareholders as part of a
capital reduction last year.
If dividends are included, Charoen's deal to takeover F&N is
profitable especially after the split, which now reflects a
better market value of its Singapore property business, one of
the sources told Reuters.
In a research note last month, UBS also flagged the
possibility of Charoen's Thai Beverage selling its
stake in the property business and taking a larger stake in F&N
to focus on the food and beverage firm.
FCL's Frasers Hospitality owns serviced residences in
Singapore, Europe, North Asia, Southeast Asia, the Middle East
and Australia, offering about 8,000 apartments in more than 30
cities, according to its website.
FCL has picked DBS, HSBC, Morgan Stanley
and United Overseas Bank as the main advisers
on the deal, sources with direct knowledge of the matter said.
These banks also played a key role the F&N transaction with
DBS and UOB providing the bulk of the financing.
"The deal could come as early as April, but all depends on
the markets," a source with direct knowledge of the matter said,
adding the deal size could be between S$500 million and S$600
A spokesman for FCL said the group has previously announced
that it is exploring the possibility of a hospitality REIT, but
declined to confirm the name of the advisers and the size of the
deal. The banks were not immediately available to comment.
($1 = 1.2681 Singapore dollars)
(Editing by Matt Driskill)