The venerable company, which built its name as a soft-drink seller, could sell its property division for SGD 7.7 billion.
As 129-year-old conglomerate Fraser & Neave Ltd (FNN) seeks to let go of business assets, the largest property deal in Southeast Asia could come to fruition.
Starting off as a seller of soft drinks, FNN diversified into property and other businesses through its century-long history. The group currently holds a property portfolio anchored by one of Singapore's more renowned shopping complexes, Centrepoint, which is located in the heart of prime shopping district, Orchard Road.
Frasers Centrepoint Ltd, FNN's property arm, may be sold for as much as SGD 7.7 billion - representing a 71% premium over the value reflected in FNN's share price, according to Religare Capital Markets Ltd. Bloomberg data suggests that the property deal would be Southeast Asia's largest.
Retail rents in the island-state has remained high due to a population boom of 18% in the past five years, and high tourist arrivals of about one million per month.
Besides the 332,261 sq ft mall on Orchard Road, the portfolio includes over 7,000 furnished apartments from Europe to Australia. Market analysts believe that major foreign investors would circle the deal.