Frasers Commercial Trust’s Microsoft extension a window of opportunity

SINGAPORE (July 25): OCBC Investment Research is keeping its “buy” recommendation on Frasers Commercial Trust (FCOT) and raising its fair value estimate to $1.45 from $1.42 previously.

“One major development which took place during the quarter was Microsoft’s decision to extend its current lease at Alexandra Technopark (ATP) for another five years,” says OCBC lead analyst Andy Wong Teck Ching in a Monday report.

Microsoft occupies 78,000 sq ft of space at ATP, which is 7.4% of ATP’s net leasable area. The original lease, which would expired in FY2017, has now been extended to FY2022.

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