SINGAPORE: Mainboard-listed Frasers Hospitality Trust (FHT) has completed a private placement of 150 million new stapled securities to raise gross proceeds of $123 million, part of which will fund the acquisition of Sofitel Sydney Wentworth.
Reit manager Frasers Hospitality Asset Management said on Friday that the placement was priced at the top end of the price range at S$0.820 per stapled security.
TCC Hospitality Limited subscribed for 59.34 million stapled securities. The remaining 90.66 million stapled securities were two times subscribed, on the back of demand from existing stapled securityholders and new long-only investors, who accounted for 60 per cent of the book..
Said Eu Chin Fen, chief executive officer of the Reit manager: “Investors’ strong demand for the placement exercise indicates their support for FHT’s investment strategy. Sydney has proven to be a favourable hospitality market. The acquisition of Sofitel Sydney Wentworth will strengthen our portfolio and enhance returns to our stapled securityholders.”
