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Tag: Frasers

  • Frasers Group Boldly Bids $2.3 Billion for Complete Control of Hugo Boss

    Frasers Group Boldly Bids $2.3 Billion for Complete Control of Hugo Boss

    Frasers Group, a prominent UK retail corporation, recently unveiled an unexpected voluntary takeover bid for Hugo Boss. Their goal is to procure the remaining shares of the renowned German fashion brand and obtain complete ownership. Currently, Frasers Group possesses a 26.06% stake in Hugo Boss, and their proposal to acquire the unowned 73.94% stake stands at €38 per share in cash. This proposition elevates the total bid value to roughly US$2.3 billion.

    Frasers Group’s Confidence in Hugo Boss

    Frasers Group’s proposed takeover reflects its sustained assurance in Hugo Boss’s potential and facilitates possibilities for additional business investment. The company regards Hugo Boss as one of its most critical strategic brand associates. Furthermore, Frasers Group continues to back the growth strategy and management team of the fashion firm.

    However, Hugo Boss confirmed that it had received the unrequested bid and emphasized that the company had no prior involvement in coordinating the proposal. The fashion group’s management board and supervisory board will assess the proposal document once it is officially available. Subsequently, they will issue an informed viewpoint for the shareholders.

    The company also assured that it would keep its shareholders and the public updated about any future developments and the following steps as per the legal and regulatory stipulations.

    Frasers’ Association with Hugo Boss

    The affiliation between Frasers Group and Hugo Boss traces back to 2020. This was when Mike Ashley, the founder of Frasers, initiated an investment in the German fashion company. The group also secured representation on Hugo Boss’s supervisory board through its CEO, Michael Murray.

    Questions & Answers

    What is Frasers Group’s current stake in Hugo Boss?
    Frasers Group currently holds a 26.06% stake in Hugo Boss.

    What is the proposed offer per share by Frasers Group for the remaining stake in Hugo Boss?
    The proposed offer by Frasers Group for the remaining stake in Hugo Boss is €38 per share in cash.

    What is the history of the relationship between Frasers Group and Hugo Boss?
    The relationship between the two companies began in 2020 when Frasers Group’s founder, Mike Ashley, started investing in Hugo Boss. Additionally, Frasers Group has representation on Hugo Boss’s supervisory board through CEO Michael Murray.

  • Thai Billionaire’s Frasers Property Sees Profit Surge and Eyes Expansion into China

    Thai Billionaire’s Frasers Property Sees Profit Surge and Eyes Expansion into China

    Charoen Sirivadhanabhakdi, the chairman of TCC Group and Thailand’s second-richest individual, is making waves in the real estate market. Frasers Property Ltd., the company under his stewardship, has reported a staggering surge in profit in Singapore while also setting its sights on expansion in China.

    The Singapore-based developer announced a remarkable net income of SGD135.6 million (approximately US$104 million) for the six months ending March 31, marking a 3.7-fold increase compared to the same period last year. Revenue saw a milder rise of 2.7%, reaching SGD1.59 billion, as disclosed during a briefing on Friday.

    Singularly, Singapore’s recovering housing market has significantly boosted Frasers’ fortunes. Profit from residential developments increased by 12% over the six-month span. Conversely, the company faced a more than 40% decline in profits from its China operations. Nevertheless, Frasers is cautiously re-entering the Chinese market after acquiring a residential plot in Shanghai in collaboration with local partners back in February.

    CEO Panote Sirivadhanabhakdi, who has been leading the company since 2016, expressed optimism about the Shanghai venture but underlined a cautious approach regarding the broader Chinese market. “Land auctions in Shanghai’s center have heated up, and we’re actively seeking opportunities in key cities,” noted Lim Hua Tiong, the company’s chief executive for emerging markets in Asia, during Friday’s earnings briefing. He added, “I understand there are many questions about China, but I always assert that Shanghai is uniquely different from the rest of China.”

    Frasers’ ownership landscape remains heavily influenced by Charoen’s Thailand-based TCC Group, which holds nearly 90% of the company’s shares. On Friday, the stock experienced a dip of as much as 1.2% but later clawed back some losses. This year, the stock has seen a decline of approximately 13%, in stark contrast to a modest gain of about 1% in Singapore’s real estate index.

    As of Friday, Charoen’s net worth sits at $11.7 billion, positioning him third in Thailand behind Dhanin Chearavanont, senior chairman of Charoen Pokphand Group, and Sarath Ratanavadi, CEO of Gulf Energy Development, according to Forbes. In the high-stakes world of real estate, it seems Charoen is firmly in the game, not just playing but reshaping the landscape.

    Questions & Answers

    What is Frasers Property’s net income for the first half of the year?
    The company reported a net income of SGD135.6 million (US$104 million) for the six months ending March 31.

    How has the Singapore housing market affected Frasers Property?
    The recovering Singapore housing market has been a crucial driver for the company, with profit from residential developments increasing by 12%.

    What are Frasers Property’s plans regarding the Chinese market?
    Frasers is cautiously looking to expand its presence in China, having made a joint acquisition of a residential plot in Shanghai while closely monitoring opportunities in key cities.

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  • Frasers Commercial Trust Q1 DPU down 4.4% on lower occupancies

    Frasers Commercial Trust Q1 DPU down 4.4% on lower occupancies

    Frasers Commercial Trust (FCOT) has posted a first-quarter distribution per unit (DPU) of 2.40 Singapore cents, down 4.4 per cent from 2.51 Singapore cents in the same period a year earlier as property income fell while the number of issued units had increased.

    The topline took a hit from lower occupancy rates at Alexandra Technopark, China Square Central, 55 Market Street and Perth’s Central Park.

    Gross revenue for the first quarter ended Dec 31, 2017 dipped 11 per cent to S$35.3 million from the same period a year earlier. China Square Central was impacted by planned vacancies to facilitate asset enhancement works at the retail podium.

    A weaker Australian dollar also dented takings.

    Net property income fell 14.9 per cent to S$24.9 million. Half of this came from FCOT’s three Singapore buildings and half from its three properties in Australia.

    In December, FCOT announced its maiden acquisition in the United Kingdom. It expects to complete its purchase of a 50 per cent stake in Farnborough Business Park by the end of January.

    Meanwhile, the S$45 million makeover of Alexandra Technopark announced a year ago is slated to be completed in the middle of this year.

    China Square Central’s retail podium will also undergo a S$38 million asset enhancement starting in the first quarter of 2018 with completion expected by mid-2019.

    FCOT had a 80.3 per cent average occupancy rate as at Dec 31 and an average committed occupancy rate of 86.6 per cent.

    WeWork Singapore, the co-working space operator, has committed to lease around 28,700 sq ft of space at one of China Square Central’s heritage shophouse blocks, FCOT added in its results filing on Monday.

    WeWork will take up the space in phases starting with 16,800 sq ft in the second half of 2018.

    Jack Lam, chief executive of the Reit manager, said: “We are delighted to welcome WeWork to China Square Central … The take-up by WeWork is a strong testament to the attractiveness of China Square Central as a work and business location. We foresee rising demand for co-working facilities and other non-traditional workplace formats in light of the continuous evolution of work culture and reshaping of the business ecosystem.”

    First-quarter earnings per unit was 1.64 Singapore cents, down from 2.36 Singapore cents in the same period a year earlier.

    Net asset value per share was 1.55 Singapore cents as at Dec 31.

    FCOT had a gearing of 34.8 per cent as at Dec 31, and an interest coverage ratio of 4.3 times.

    The counter added two Singapore cents or 1.31 per cent to close at S$1.55 on Monday.

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  • Introducing the largest integrated real estate project in Bangkok

    Introducing the largest integrated real estate project in Bangkok

    Described as “a city within a city”, Thailand’s largest integrated development, One Bangkok, is being launched as a joint project by TCC Assets (Thailand) and Frasers Centrepoint (FCL).

    Incorporating green-sustainability principles, the development covers 104 rai (16.7 ha), and will increase green and open areas in the city centre by 50 rai when it opens in 2021.

    One Bangkok 3

    One Bangkok will be the largest private-sector property development initiative undertaken in Thailand, with an estimated investment value of more than THB120 billion (about US$3.5 billion).

    “The fundamental aim in the planning and design of One Bangkok is to enhance Bangkok’s stature as a key gateway city in Asia,” says TCC Group and FCL chairman Charoen Sirivadhanabhakdi.

    One Bangkok 1

    A fully integrated “city-within-a-city” district, One Bangkok will comprise retail and leisure offerings within differentiated precincts, next-generation office buildings, luxury and lifestyle hotels, ultra-luxury residential towers, civic areas, and art and culture amenities as well as greenery and open spaces.

    Leased from the Crown, the land is in a prime location at the corner of Wireless and Rama IV Roads, next to Lumphini Park and with direct linkages to mass transit systems.

    “We are very honoured to be entrusted by the Crown Property Bureau to turn this important plot of land in the heart of the city into a showpiece district,” says Sirivadhanabhakdi.

    “With One Bangkok, I hope to enhance global confidence in Thailand as the epicenter of Asean and a key gateway and lifestyle city in Asia.”

    One Bangkok - Opening Ceremony

    Shared vision

    For the “game-changing” endeavour, he says he has placed his confidence in two TCC Group companies – TCC Assets (Thailand) and Frasers Property. “They are companies that perfectly complement each other and can, together, fulfill our shared vision of a quality development.”

    For the JV, TCC Assets hold an 80.1 per cent interest, with Frasers Property Holdings (Thailand) holding the balance of 19.9 per cent. Frasers Property is the international property brand of FCL, a multi-national real-estate company with more than US$17.6 billion in assets.

    One Bangkok 5

    “By forming such a strategic alliance, we are able to combine the financial strength and local know-how of TCC Assets, with the enormous international property development expertise of Frasers Property, which has an impeccable global track record of award-winning development projects,” says Sirivadhanabhakdi.

    “The partnership will ensure that we have the creativity, capability and capital to bring to life one of our most exciting development initiatives,” says FCL Group CEO Panote Sirivadhanabhakdi. “No single development of this scale and diversity has ever been undertaken in Thailand.”

    He says One Bangkok will attract top-level local and multinational companies to set up headquarters in the district. “It is Bangkok’s first fully integrated ‘people-centric’ development, designed around how people can seamlessly live, work and play, seeking to reinstate a sense of human scale in a way that enhances comfort and convenience.”

    He says One Bangkok’s development philosophy is centred on diversity of uses and architecture, overlaid with sustainability principles and sensitive to the local social and cultural context, incorporating Thailand’s heritage and aspects unique to Bangkok.

    One Bangkok’s CEO Su Lin Soon is supported by a development team of more than 100 specialists.

    “In creating a world-class district in the heart of Bangkok, we envision One Bangkok to be synonymous with Thailand,” she says. “New quality standards, international best practices and diversity in the mix of uses and architecture are fundamental features of the master plan, designed by Skidmore, Owings & Merrill, supported by local expertise from Plan Associates and A49.”

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  • Frasers Centrepoint Trust buys retail podium of Yishun 10 Cinema Complex

    Frasers Centrepoint Trust buys retail podium of Yishun 10 Cinema Complex

    Frasers Centrepoint Trust has entered into two sale and purchase agreements for the acquisition of the retail podium of Yishu 10 Cinema Complex. The deal is worth $37.8m.

    One of which was with Goldvein Trading Pte. Ltd., for the acquisition of units #01-01, #01-02, #01-04/04A, #01-05, #01-06, #01-07, #01-08 and #01-09 of the retail podium of Yishun 10 Cinema Complex, 51 Yishun Central 1, Singapore 768794 at a consideration sum of S$25.9m

    The other was with Bon-Food Pte Ltd, for the acquisition of unit #01-03 of the Retail Podium at a consideration sum of S$11.8m.

    The acquisition is in line with the strategy of FCT of nvesting in quality income-producing properties used primarily for retail purposes.

    Goldvein Trading Pte. Ltd. and Bon-Food Pte Ltd are whollyowned Singapore subsidiaries of Bonvests Holdings Limited, a company listed on the Main Board of Singapore Exchange Securities Trading Limited.

    The Aggregate Consideration for the Acquisition was arrived at on a willing-buyer and willing-seller basis after taking into account the location, occupancy and rental income generated by the Retail Podium. The independent valuation as at 30 September 2016 of all 10 units of the Retail Podium by Jones Lang LaSalle Property Consultants Pte. Ltd., which was appointed by the Trustee, is S$40m and derived using the discounted cash flow approach and direct capitalisation approach.

    The Aggregate Consideration will be paid in cash to the Vendors on completion of the Acquisition, which is expected to be on 16 November 2016.

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