Far East Consortium ponders Singapore for trust listing

Business | 29 Nov 2019 2:48 pm

Developer Far East Consortium International (0035) is mulling a real estate investment trust listing in Singapore due to the tax relief and the good market performance of similar REITs in the country, said executive director Chris Hoong Cheong-thard.

Far East announced last night that it is considering a potential spin-off and separate listing of certain hospitality properties in Australia, Singapore, Malaysia, and the United Kingdom.

But Hoong said the company will not include all properties in the four countries into the REIT.

He added the spinoff plan does not consist of their Hong Kong hotels, as the current business performance is gloomy amid the social unrest and that it will affect the REIT's valuation.

He said revenue in hotels in Hong Kong fell by about 20 percent per room for the six months ended September. 

Hoong is confident about Hong Kong's prospects and expects the number of tourists to Hong Kong will recover.

Shares of Far East were up by 3.71 percent to HK$3.63 as of 2:12 pm.

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