Fraser Centrepoint Ltd (FCL): FCL has purchased a portfolio of Malmaison and Hotel du Vin portfolio of 29 upscale boutique lifestyle hotels in UK for S$760m from KSL Capital Partners. This doubles FCL’s footprint in Europe to 4,000 rooms and boost its hospitality exposure to 13% of total assets.
CIMB sees the acquisition as strategic as it would expand FCL’s reach into the UK tourist market as well as the premium tourist segment with potential to introduce these brands into Asia as well as tap into these new networks.
The purchase could boost FCL’s earnings by a marginal 1-5% with further upside potential from a visible acquisition pipeline.
The house maintains its ADD rating with an unchanged TP: $2.02 (30% discount to RNAV).
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