SINGAPORE Aug 26 Thai billionaire Charoen
Sirivadhanabhakdi is looking to raise at least $500 million by
listing a hospitality trust in Singapore next year to help
refinance some of the debt that his companies took on to win
control of Fraser and Neave (F&N), people with
knowledge of the matter said.
The real estate investment trust would hold service
residences owned by F&N and hotels held by the Thai beer baron's
TCC Assets Ltd such as the InterContinental Hotel in Singapore.
The listing would also mark the first step towards the
merging of F&N's assets and Charoen's business empire after the
Thai tycoon won control of the Singapore drinks-and-property
conglomerate early this year in an $11 billion deal. Charoen
controls F&N through TCC and Thai Beverage PCL.
Two sources said that while the exact size of the IPO has
not been decided yet, they expect it would raise at least $500
million and be conducted in the first half of next year.
"They really have very good assets within F&N and TCC. The
size would really depend on the portfolio and on what they want
to inject into the REIT," said one of the sources involved in
The sources declined to be identified because the details of
the REIT are confidential.
A formal mandate on the advisory roles for the listing has
yet to be announced.
DBS Group Holdings and United Overseas Bank
, the main lenders behind Charoen's bid for F&N, are
expected to nab advisory roles for the REIT's IPO, the sources
Morgan Stanley, which also advised the Thai group on
the F&N takeover, and Standard Chartered, which
provided initial financing, are also expected to play a key
role, they said.
F&N declined to comment on the size of the deal or the banks
that they are talking to.
F&N said last week it had received proposals from investment
banks related to a hospitality REIT, but added that no decision
has been made.
F&N's hospitality unit owns service residences in major
European cities, the Middle East, North and Southeast Asia and
Australia, while Charoen's TCC owns hotels in Asia, Australia,
Europe and North America.
Yield-hungry investors have made Singapore a popular
location for REIT offerings. Listings this year have included
SPH REIT, OUE Hospitality Trust and
Soilbuild Business Space REIT.