Monday, August 24, 2015

Frasers Hospitality

Frasers Hospitality (FHT) acquired a 259-unit serviced residence property in Dalian for Rmb481.4m ($100.3m), keeping it on track to double its presence in China.

Dalian being a major port and one of the top 10 fastest growing cities in China has attracted significant amount of foreign direct investments, which amounted to US$12.5b in 2014.

The newly acquired property, Frasers Suites Dalian will be designed by renowned Hirsch Bedner Associates and is scheduled to open in 2017.

The serviced residence will be part of the mixed-use Europark Tower development, comprising a 100,000 sqm shopping mall, designer offices and luxury residential apartments, and is situated in Donggang CBD within walking distance to Dalian Port and Davos Conference Centre.

Ranging from studios to three-bedroom apartments, all units will feature living, dining, as well as bedroom areas. It will also provide facilities such as gym, swimming pool, conference and meeting areas.

This latest acquisition is one of the sixteen new properties that FHT plans to add in China, which in total will take the REIT’s China portfolio to 30 properties with more than 7,000 keys.

Other new properties in the pipeline are located at Changsha, Dalian, Hefei, Nanchang, Shenzhen, Suzhou, Tianjin, Wuxi, Xiamen, Chengdu and Shanghai.

FHT is currently trading 0.9x P/B and indicative 7.7% distribution yield. The street has 1 Buy, 2 Hold and 1 Sell rating with a consensus TP of $0.83 on the counter.

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