Frasers Property Limited (FPL) says it is divesting its entire stake in Beijing Fraser Suites Real Estate Management for a consideration of RMB1.605 billion ($329.1 million).
On Jan 21, FPL’s subsidiary Excellent Esteem entered into a sale and purchase agreement (SPA) with Shanghai Fu Ting Qi Ye for the sale of 100% of the equity capital in Beijing Fraser Suites.
Shanghai Fu Ting is a joint venture company established by Tishman Speyer RMB Funds and Shanghai Dowell Trading.
Beijing Fraser Suites is wholly-owned by Excellent Esteem and owns an apartment project named Beijing Fraser Suites International Apartment located at No. 12 Jintong West Road in Beijing’s Chaoyang District.
Following the completion of the divestment, Beijing Fraser Suites will cease to be a subsidiary of Excellent Esteem.
SEE: Frasers Property to combine group's industrial and logistics operations in Australia and Europe with FLT in FY2020
The purchase consideration will be paid in cash.
Some RMB20.5 million has already been paid following a letter of intent signed by Excellent Esteem, Tishman Speyer and Shanghai Dowell on Sept 21, 2020.
Based on FPL’s statements for FY2020, the book value attributable to the sale as at Sept 30, 2020, is approximately RMB1.16 billion. The estimated net gain is around $90 million.
Assuming the divestment had been completed on Sept 30, 2020, FPL’s net tangible assets (NTA) would’ve been $6.92 billion instead of $6.84 billion. Earnings per share (EPS) would have been 6.19 cents after fair value change, from 3.81 cents.
Shares in FPL closed 1 cent higher or 0.8% up at $1.28 on Jan 21.
