When asked about redevelopment, Sirivadhanabhakdi says: “We need to look at the timing carefully to reap the full value of our assets. We are not going to be rushed, especially in Singapore, where the market is still quite strong and where we understand supply-demand metrics quite well, to be able to make a judgment over when to unlock value.”
During Frasers Property’s (FPL) results briefing on Nov 14, questions swirled around the potential redevelopment of three properties — Valley Point, The Centrepoint and Yishun 10. Redevelopment can increase a company’s net asset value (NAV), given the potential for a valuation uplift from current low interest rates, tight capitalisation rates, and a relatively low cost of capital because of low interest rates in Singapore.
In his prepared remarks on Nov 14, Panote Sirivadhanabhakdi, group CEO at FPL, referred to the privatisation of Frasers Hospitality Trust (FHT), which was completed on Oct 6. He said the group “will be positioned to unlock value for the portfolio” by leveraging the group’s hospitality expertise.
