27-09-2015, 11:14 PM
Dun Play Play... Towkay's ALZ play is a strategic long term story that even Capland stewards have probably under-estimated... its definitely slow and steady that will lead to a huge and steady growth platform...
Frasers gets $10bn shot in the arm to expand growth pipeline
Greg Brown
[Image: greg_brown.png]
Property Reporter
Sydney
[Image: 112049-5388a15a-635b-11e5-a028-21ee00f9abb4.jpg]
Frasers Property Australia chief executive Rod Fehring. Picture: Sam Mooy Source: News Corp Australia
[b]The Singaporean parent of Frasers Property Australia has given its local arm a mandate to pursue substantial growth, with the group expecting to manage an extra $10 billion worth of property over the next five years.[/b]
Frasers Property Australia chief executive Rod Fehring said the company expected to increase the $20bn worth of property owned by Frasers or its Singaporean-based trusts by 5 to 10 per cent a year.
“If you extrapolate that it takes you to about $30bn in that five-year period, so an extra $10bn than we’ve currently got,” Mr Fehring told The Australian.
“How that gets distributed between hospitality, between retail, between office and (other asset classes) is going to be driven by which sector is generating the best returns,” he said.
The Singapore-listed Frasers Centrepoint — controlled by Thai tycoon Charoen Sirivadhanabhakdi — last year completed a $2.6bn takeover of the listed Australand Property Group.
Australand last month rebranded to Frasers Property Australia and completed its integration with Frasers’ already existing local arm, giving the combined entity a value of about $4.6bn. “It brings (Australand) into a group which is interested in and has the capital available to be able to grow and has the appetite for growth in retail in hospitality and in commercial. We are also strong in industrial so that gives you a very powerful business model,” Mr Fehring said
Mr Fehring reiterated its strategy to develop assets and then sell them into funds controlled by its parent.
It would retain management of the assets and then redeploy the capital into new development or investment opportunities.
Retail is one area Mr Fehring has earmarked for growth, with the group hoping to boost its portfolio from about $300 million to $1bn in the next three to five years.
The Australian can reveal that the group has created a new retail division, to be led by Peri Macdonald, which will be managed separately from the rest of the commercial portfolio.
Mr Fehring noted that Frasers had significant retail holdings globally, in Singapore through its listed REIT and also in Thailand.
“When you look at our book in Australia, retail has been developed as an adjunct primarily driven by our residential business,” he said. “When you put them all together they actually add up to quite a lot when they are fully matured.”
The group may look to eventually sell some of its retail holdings into funds controlled by its parent.
Mr Fehring said that the group would look to increase its development of masterplanned communities that include retail centres.
In the pipeline is a project in Sydney’s Edmondson Park, to include a 36,000sq m retail centre and 1400 residential dwellings, while Melbourne’s Burwood brickworks site will have a 12,000sq m centre with 900 homes.
“That is the flavour of what the market is looking for and what governments are encouraging from a planning point of view, and from our skill sets that’s what we are strong in. We think it's a major trend moving forward,” he said.
Frasers gets $10bn shot in the arm to expand growth pipeline
- THE AUSTRALIAN
- SEPTEMBER 28, 2015 12:00AM
Greg Brown
[Image: greg_brown.png]
Property Reporter
Sydney
[Image: 112049-5388a15a-635b-11e5-a028-21ee00f9abb4.jpg]
Frasers Property Australia chief executive Rod Fehring. Picture: Sam Mooy Source: News Corp Australia
[b]The Singaporean parent of Frasers Property Australia has given its local arm a mandate to pursue substantial growth, with the group expecting to manage an extra $10 billion worth of property over the next five years.[/b]
Frasers Property Australia chief executive Rod Fehring said the company expected to increase the $20bn worth of property owned by Frasers or its Singaporean-based trusts by 5 to 10 per cent a year.
“If you extrapolate that it takes you to about $30bn in that five-year period, so an extra $10bn than we’ve currently got,” Mr Fehring told The Australian.
“How that gets distributed between hospitality, between retail, between office and (other asset classes) is going to be driven by which sector is generating the best returns,” he said.
The Singapore-listed Frasers Centrepoint — controlled by Thai tycoon Charoen Sirivadhanabhakdi — last year completed a $2.6bn takeover of the listed Australand Property Group.
Australand last month rebranded to Frasers Property Australia and completed its integration with Frasers’ already existing local arm, giving the combined entity a value of about $4.6bn. “It brings (Australand) into a group which is interested in and has the capital available to be able to grow and has the appetite for growth in retail in hospitality and in commercial. We are also strong in industrial so that gives you a very powerful business model,” Mr Fehring said
Mr Fehring reiterated its strategy to develop assets and then sell them into funds controlled by its parent.
It would retain management of the assets and then redeploy the capital into new development or investment opportunities.
Retail is one area Mr Fehring has earmarked for growth, with the group hoping to boost its portfolio from about $300 million to $1bn in the next three to five years.
The Australian can reveal that the group has created a new retail division, to be led by Peri Macdonald, which will be managed separately from the rest of the commercial portfolio.
Mr Fehring noted that Frasers had significant retail holdings globally, in Singapore through its listed REIT and also in Thailand.
“When you look at our book in Australia, retail has been developed as an adjunct primarily driven by our residential business,” he said. “When you put them all together they actually add up to quite a lot when they are fully matured.”
The group may look to eventually sell some of its retail holdings into funds controlled by its parent.
Mr Fehring said that the group would look to increase its development of masterplanned communities that include retail centres.
In the pipeline is a project in Sydney’s Edmondson Park, to include a 36,000sq m retail centre and 1400 residential dwellings, while Melbourne’s Burwood brickworks site will have a 12,000sq m centre with 900 homes.
“That is the flavour of what the market is looking for and what governments are encouraging from a planning point of view, and from our skill sets that’s what we are strong in. We think it's a major trend moving forward,” he said.