(Reuters) – Singaporean investment holding firm Frasers Property said on Monday it will take its subsidiary, Frasers Hospitality Trust, private in a deal valuing the real estate investment trust (REIT) at S$1.35 billion ($970.46 million).
Frasers Property will buy shares of the REIT, which manages hotels and serviced residences across Asia, Australia and Europe, at S$0.70 apiece, a 6.1% premium to their last close.
Frasers Hospitality Trust is smaller in scale compared to its peers in a market where scale and size are essential to liquidity and growth, Frasers said, adding that its size has limited its ability to reap the benefits of a continued listing.
It has also found it difficult to translate its property acquisitions into higher distributions to unitholders, Frasers added.
($1 = 1.3911 Singapore dollars)
(Reporting by Harshita Swaminathan)
