Frasers Property (formerly: Frasers Cpt (FCL))

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http://infopub.sgx.com/FileOpen/Frasers%...leID=20041

I did further research on FCL on the pending listing of Fraser Hospitality Trust. On page 59 of the maiden annual report, the net book value of hospitality assets are worth in excess of S$1.6bn. The entire division chalked up EBIT of $70m possibly implying an unleveraged yield of around 4.3%.

Based on previous media speculation of the float size, it appears that the intended hospitality trust could have a very healthy pipeline of assets (currently FCL already has more than 3 times the speculated float value) in the years ahead once the relatively immatured assets are being nurtured to maturity. The pipeline may be enhanced with the indicated participation of unlisted parent TCC Assets.

Other catalysts for FCL going forward includes:

i) further asset light strategies on its retail mall assets - speculated next up to be 50% owned Changi City Point
ii) interim dividends payable based on its track record of unlisted entity. FCL paid an adjusted 6.9 cents DPS last years - a 50% payout ratio
iii) streamlining of F&N and FCL holdings between TCC and Inter Bev (Thai Bev)
iv) eventual improvement in free float of FCL that will enhance institutional participation and potential inclusion in major stock indices.

Vested
GG

(31-03-2014, 10:26 PM)greengiraffe Wrote: Recap:

http://infopub.sgx.com/Apps?A=COW_CorpAn...7700387B4B

6 Feb 14 - "Thai tycoon Charoens FCL eyes $473 mln hospitality REIT in Q2 sources".

http://infopub.sgx.com/FileOpen/FCL-Tham...eID=286023

12 Mar 14 - RECEIPT OF ELIGIBILITY-TO-LIST FOR PROPOSED REIT LISTING

http://infopub.sgx.com/FileOpen/Frasers_...eID=288920

31 Mar 14 - Marking Sweet 16 with 92

Facts: PBIT for Hospitality S$69.7m or 12% of total group PBIT for year ending 30 Sept 2013.

With financial engineering for the floating of REIT and with the potential participation of TCC Group, it appears that another platform for value creation will soon be established.

Vested
GG
Reply
(07-04-2014, 02:48 PM)greengiraffe Wrote: http://infopub.sgx.com/FileOpen/Frasers%...leID=20041

I did further research on FCL on the pending listing of Fraser Hospitality Trust. On page 59 of the maiden annual report, the net book value of hospitality assets are worth in excess of S$1.6bn. The entire division chalked up EBIT of $70m possibly implying an unleveraged yield of around 4.3%.

Based on previous media speculation of the float size, it appears that the intended hospitality trust could have a very healthy pipeline of assets (currently FCL already has more than 3 times the speculated float value) in the years ahead once the relatively immatured assets are being nurtured to maturity. The pipeline may be enhanced with the indicated participation of unlisted parent TCC Assets.

Other catalysts for FCL going forward includes:

i) further asset light strategies on its retail mall assets - speculated next up to be 50% owned Changi City Point
ii) interim dividends payable based on its track record of unlisted entity. FCL paid an adjusted 6.9 cents DPS last years - a 50% payout ratio
iii) streamlining of F&N and FCL holdings between TCC and Inter Bev (Thai Bev)
iv) eventual improvement in free float of FCL that will enhance institutional participation and potential inclusion in major stock indices.

Vested
GG

(31-03-2014, 10:26 PM)greengiraffe Wrote: Recap:

http://infopub.sgx.com/Apps?A=COW_CorpAn...7700387B4B

6 Feb 14 - "Thai tycoon Charoens FCL eyes $473 mln hospitality REIT in Q2 sources".

http://infopub.sgx.com/FileOpen/FCL-Tham...eID=286023

12 Mar 14 - RECEIPT OF ELIGIBILITY-TO-LIST FOR PROPOSED REIT LISTING

http://infopub.sgx.com/FileOpen/Frasers_...eID=288920

31 Mar 14 - Marking Sweet 16 with 92

Facts: PBIT for Hospitality S$69.7m or 12% of total group PBIT for year ending 30 Sept 2013.

With financial engineering for the floating of REIT and with the potential participation of TCC Group, it appears that another platform for value creation will soon be established.

Vested
GG

Tmr we will know the results of Woodlands Square GLS sale....hopefully FCL can win this site for less than a billion dollars...
https://www.ura.gov.sg/uol/land-sales-re...sq-cl.aspx
This site is zoned for commercial used (Office).
Reply
Still awaiting for FCL announcement on the sale of 50% stake in Changi City Point. However, after reading uob kh report - fcl still got 50% stake in the office portion ONE@Changi City - book value $281m. uob kh expects the office portion to be acquired by AREIT.

"• Watch for the acquisition of One@Changi City by Ascendas REIT (AREIT), now that the strata sub-division of the Changi City project is complete. One@Changi City is the business space tower at the Changi City project. The nine-storey development provides 650,000sf of
business space and is over 90% occupied with key tenants including Credit Suisse, JP Morgan and EMC."

To be exact One@Changi City has NLA of 665914sf of office space and with the occupancy in excess of 90% is a more matured property compared to VIVA's UE Bizhub East.

More asset light initiatives coming - Based on viva price paid to UE for a lower occupancy bizhub east @ $625psf, the expected sale price should be $416m implying another $135m capital gains to be booked by fcl/ascendas.

The following are other assets classified as held for sale:

Overseas Retail Assets:

- China, Beijing - Crosspoint 100% BV $59m NLA 161909sf Occupancy 92%
- Australia, Sdyney - Central 38% BV$141m NLA 149652sf (new)

Singapore Office/Business Park:

- 51 Cuppage Road 100% BV$392m NLA 276439sf Occupancy 74%

Overseas Office/Business Park:

- China Chengdu Logistics Park 80% BV$89m NLA 703981sf Occupancy 78%

Vested
GG
Reply
(07-04-2014, 03:08 PM)toiletsiao Wrote: Tmr we will know the results of Woodlands Square GLS sale....hopefully FCL can win this site for less than a billion dollars...
https://www.ura.gov.sg/uol/land-sales-re...sq-cl.aspx
This site is zoned for commercial used (Office).

The result is announced.

Woodlands commercial site draws S$634m top bid

SINGAPORE — A plot of land in Woodlands, the first commercial Government Land Sales (GLS) site in the district in nearly 20 years, attracted eight bids at the close of tender yesterday, with the top bid of S$634 million submitted by a consortium led by Far East Organization.

The 99-year leasehold site has an area of 199,873 sq ft, with a maximum allowable gross floor area of 699,557 sq ft. The top bid by Far East Civil Engineering, Tannery Holdings and Sekisui House translates to a unit price of S$906 per square feet per plot ratio and is only 2.1 per cent higher than the second-best bid, Urban Redevelopment Authority data showed.

Analysts said the keen competition was no surprise as it was the first commercial site in Woodlands launched under the GLS since the sale of the Causeway Point site in 1995.

“The site is expected to serve as the catalyst to kick-start the development of the Woodlands Regional Centre,” said Ms Chia Siew Chuin, Director of Research and Advisory at Colliers International.
http://www.todayonline.com/business/wood...4m-top-bid
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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Legal threat for Central Park
Samantha Hutchinson
370 words
10 Apr 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Angry residents at Sydney's Central Park development are considering legal action against developers Frasers Property Australia and Sekisui House over poorer than expected facilities at the $2 billion project.

Three strata committees representing two towers and a low-rise building have set aside $6000 to obtain legal advice over claims of unsatisfactory building quality and the developer not delivering a two-level gym to date.

In correspondence obtained by The Australian Financial Review, the ­committees argue the gym is overcrowded, unsafe and measures just 200 square metres, compared to the two-level health club promoted in marketing materials.

Other residents complain of uneven floors, shoddy paintwork and poor finishes in corridors, lobbies and lift wells.

"We bought in Central Park because we had seen [other Frasers developments] Lumiere and Trio, and we were sold on the fact the developers said this place would be even better," said one strata committee member. "But it's not; it's way behind."

Some owners reject the claims. "We think it's immaculate. The views of some vocal committee members definitely don't reflect the views of us all," resident Glen Reddan said.

Frasers argue the facilities are "not in their final format". Likewise, the gym is "intended as a temporary measure" and will be upgraded as other stages of the project are completed.

The ambitious project on the former Carlton United Brewery site on Broadway with 2100 apartments, a shopping centre and office space is one of the city's most high-profile and ­recog­nisable projects. Still under construction, the project on 5.2 hectares is also considered a litmus test of the strength of demand for inner-city units.

The stoush comes at a time when off-the-plan unit sales are running red hot, and complaints to NSW Fair Trading are on the rise. Fair Trading late last month cautioned developers against unfair trade practices.

Some buyer's agents argue buying new-build apartments is always a risky play. "There are always disappointments; we would rather buy [established property ] because everything is ironed out," Wakelin Property Advisory head Richard Wakelin said. "The expectations with what you're getting are very clear."


Fairfax Media Management Pty Limited

Document AFNR000020140409ea4a00023
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Extract from article featuring under new IPO "POSH" thread:

Frasers Centrepoint Ltd, a company controlled by Thai billionaire Charoen Sirivadhanabhakdi, has yet to decide on the formal launch of a S$600 million hospitality Reit IPO after it won approval from the Singapore Exchange to list in March.
Reply
FCL gave more hints on the initial hospitality assets that could be anchoring its upcoming hospitality trusts.

In its maiden annual report pages 197 - 200, one can deduce by differentiating between completed investment properties and completed properties held for sale.

Under completed properties held for sale, I can only manage to trace down the following hospitality assets:

i) 80.5% held Fraser Suites Sydney with a (100%) book value of A$99m

ii) 87.5% held Fraser Suites Perth with a (100%) book value of A$125M

iii) 50% held Capri By Fraser, Changi City with a (100%) book value of S$101m. Viva REIT acquired the 251-room hotel in UE Bizhub East for a per key valuation of S$550k. Using similar benchmark, the 303-room Capri By Fraser, Changi City should be worth around $166.65m.

As the previously rumoured listing market cap of US$473m or S$600m for the hospitality reit, the classification of the above 3 assets sounds about right and TCC Assets may just need to contribute another 1 to 2 more assets for the initial listing assuming little gearing at the inception of the hospitality reit.

Vested
GG

(07-04-2014, 02:48 PM)greengiraffe Wrote: http://infopub.sgx.com/FileOpen/Frasers%...leID=20041

I did further research on FCL on the pending listing of Fraser Hospitality Trust. On page 59 of the maiden annual report, the net book value of hospitality assets are worth in excess of S$1.6bn. The entire division chalked up EBIT of $70m possibly implying an unleveraged yield of around 4.3%.

Based on previous media speculation of the float size, it appears that the intended hospitality trust could have a very healthy pipeline of assets (currently FCL already has more than 3 times the speculated float value) in the years ahead once the relatively immatured assets are being nurtured to maturity. The pipeline may be enhanced with the indicated participation of unlisted parent TCC Assets.

Other catalysts for FCL going forward includes:

i) further asset light strategies on its retail mall assets - speculated next up to be 50% owned Changi City Point
ii) interim dividends payable based on its track record of unlisted entity. FCL paid an adjusted 6.9 cents DPS last years - a 50% payout ratio
iii) streamlining of F&N and FCL holdings between TCC and Inter Bev (Thai Bev)
iv) eventual improvement in free float of FCL that will enhance institutional participation and potential inclusion in major stock indices.

Vested
GG

(31-03-2014, 10:26 PM)greengiraffe Wrote: Recap:

http://infopub.sgx.com/Apps?A=COW_CorpAn...7700387B4B

6 Feb 14 - "Thai tycoon Charoens FCL eyes $473 mln hospitality REIT in Q2 sources".

http://infopub.sgx.com/FileOpen/FCL-Tham...eID=286023

12 Mar 14 - RECEIPT OF ELIGIBILITY-TO-LIST FOR PROPOSED REIT LISTING

http://infopub.sgx.com/FileOpen/Frasers_...eID=288920

31 Mar 14 - Marking Sweet 16 with 92

Facts: PBIT for Hospitality S$69.7m or 12% of total group PBIT for year ending 30 Sept 2013.

With financial engineering for the floating of REIT and with the potential participation of TCC Group, it appears that another platform for value creation will soon be established.

Vested
GG
Reply
This week's 2 major deals on SGX by Capland on CMA and OBS/Wheelock on HPL is indicative on the respective owners view on the value of the listed companies. The two deals came on the back of UIC's move on tightly held Singland a month ago. While analysts have been busy speculating on what is the potential targets within the sector to be delisted, no many have highlighted where the $ resulting from the privatisations could be heading. This is on top of the current offer to delist Olam (non property related).

I have enclosed CIMB's latest Kepland report and on page 3, it shows the market cap (by no means exhaustive) of the various listed developers:

i) HK Land
ii) Capland
iii) GLP (mainly Chinese warehouse developments)
iv) City Dev
v) Kepland
vi) UOL
vii) FCL

Capland has already benefited from its move to delist CMA with institutions benefiting from the delisting move switching to the parent. Apart from that, the broad sector has already benefited from the general bullishness notwithstanding the already known poor sentiment surrounding the domestic and Chinese residential sector.

FCL appears to have been lagging the recent sector performance. One key negative is the well known fact that the stock remains tightly held by Thai tycoon via TCC Assets and Inter Bev. The moratorium on both their stakes will be on the 10 Jul 14, 6 months anniversary of FCL's intriduction on SGX.

FCT has already indicated that it is acquiring the retail portion of Changi City Point - one of the milestone that I highlighted as catalysts for the re-rating of FCL. The other catalysts include:

i) interim dividends to be payable in the upcoming 1H14 results to 31 Mar 14 - noted that FCL paid 6.9 cents or a 50% payout to former parent F&N as an unlisted entity in FY13;

ii) the pending listing of the Hospitality Trust that has already received eligibility to list from SGX;

iii) streamlining of F&N and FCL holdings between TCC and Inter Bev (Thai Bev)

iv) eventual improvement in free float of FCL that will enhance institutional participation and potential inclusion in major stock indices.

On the last point, FCL already has a sizable market cap that will automatically attract institutional interests should there be sufficient free float. Note that institutions indiscriminately dump F&N when MSCI removed it from its indices when free float was deemed to small after Thai tycoon bought more than 90% of F&N. Hence some illogical move will happen in the run-up to moves to increase free float of FCL.

Vested
GG


Attached Files
.pdf   kepland-ci.pdf (Size: 481.5 KB / Downloads: 15)
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He took the plunge to build brand of serviced apartments

Frasers Hospitality boss to double its units to 30,000 in next 5 years
Published on Apr 21, 2014 1:06 AM
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Frasers Hospitality chief executive Choe Peng Sum says the firm has plans to expand globally, with Europe, Jakarta, Australia and the Middle East being of particular interest. -- ST PHOTO: DESMOND FOO

By Cheryl Ong

MR CHOE Peng Sum had no idea when he joined conglomerate Fraser & Neave (F&N) 18 years ago that he would end up running one of the world's leading brands of serviced apartments.

Mr Choe, 53, had just left a cushy job with Shangri-La Hotel, where he was a scholarship holder on a fast track up the corporate ladder.

He had been headhunted to help diversify drinks company F&N's business after it acquired Centrepoint Properties in 1990. That business became Frasers Hospitality two years later.

Mr Choe remembers every detail of his first day on March 31, 1996: "I looked around, I had a makeshift office, I didn't even have a secretary, and there (was no such thing as) serviced apartments then.

"I was really frightened because in the Shangri-La, I had everything, the whole mechanism was there... Moving up the ladder was so good," he recounted.

He recalls raising the idea of a serviced residence and having to convince the F&N board not to turn its property at Robertson Walk into a residential project.

Under Mr Choe's leadership as chief executive, the brand has come a long way since 1998, from 400 units in two properties in Singapore, to 15,500 units in 92 properties in 49 cities today.

Frasers Hospitality, which marked its 16th anniversary on March 31, is set to double the number of units under its ownership and management to 30,000 units in the next five years.

"What took us 16 years to reach, we're going to take five years," he said.

Speaking to The Straits Times in an interview at Fraser Suites River Valley, Mr Choe mapped out his game plan.

Plans to go bigger

FRASERS Hospitality, which has its own properties and operates serviced apartments on behalf of other owners, will focus on growing its presence mainly through clinching management contracts, Mr Choe said.

"Most of the American big boys... they don't grow by owning properties, they grow through management contracts. But to grow that way, there needs to be a trust in the brand and a good track record."

Now, 30 per cent of the firm's properties are owned, while the rest are under their management.

The firm has five brands: Fraser Place, Fraser Suites, Fraser Residence, Capri by Fraser and Modena. Capri units are hybrid hotel and serviced apartments catering to guests on shorter stays, while the Modena brand is currently focused on China.

Owning properties in prime locations is a plus, said Mr Choe, but "it needs to be invested in the right property cycle".

He pointed to Europe, where property values are just on their way up from the bottom.

He is bullish on the continent, especially Germany, where the firm is building a Capri property in Frankfurt that will open next year. The firm is also expecting to expand its presence in Berlin, Barcelona, Madrid and Milan.

"We've been trying to pursue Europe for a long time... It's just that in the last two years, prices really dropped quite a bit, and it's a good time (now)," he said.

In Asia-Pacific, Mr Choe is bullish on Jakarta, where there is a strong presence of expats from the oil and gas industry. The firm will open Fraser Place Setiabudi Jakarta next year. He also has his eye on Australia, where one more Capri property will open in Brisbane next year.

Elsewhere, Frasers is expecting to add a property each in Bahrain and Dubai this year.

But back home where the lion's share of the market is held by Far East Organization, the firm plans to expand through its Capri-brand residences to capture the growing number of corporate guests who come here for shorter stays. Frasers' flagship Capri property is in Changi Business Park, but Mr Choe noted the one-north area in Buona Vista is "definitely" the next place where "we're looking for more".

No walk in the park

MR CHOE acknowledges that "it will be a challenge" to reach the targets he has set, but "with a brand, it helps a lot".

Back at the beginning of his journey at Frasers Hospitality, he had no track record on his side. Persuading others to join his team was also tough then.

When the firm was ready to welcome its first guest, along came the Asian financial crisis in 1998, and his management was doubtful over the property's opening prospects.

In a stroke of luck, firms were pulling out of Jakarta which was rife with riots at the time, and they came to Singapore seeking a safe haven. This brought an influx of expats which raised occupancy at Frasers' properties to 80 per cent, and the firm has not looked back since.

Mr Choe also remembers preparing to roll up his sleeves to clean rooms and make beds during the Sars crisis in 2003, when he told the housekeepers that they would still be employed even if they chose to stay at home to avoid catching the virus.

"I cried because they all looked at me and said, 'We're going in on our own accord. Don't worry about us, we'll take the risk,'" he said.

Strong support

IN A way, the firm is a "child" that he has nurtured, but Mr Choe is confident that "we're definitely in a place to run it well" in the next five years, before it comes of age at 21.

After Thai billionaire Charoen Sirivadhanabhakdi's recent takeover of F&N, the board has given "strong support for investment properties", he said.

The firm also unveiled plans recently to inject some of its properties into a real estate investment trust. Mr Choe said the trust could comprise properties owned by Mr Charoen's TCC Group in addition to Frasers Hospitality's assets.

Although these plans are likely to keep him busy in the coming years, Mr Choe is still very much a family man. The father of two daughters - Ruth, 23, and Rachel, 22 - says he never took up golf seriously because he relishes weekends spent with them and his wife, Evelyn.

His daughters, who study at the National University of Singapore, are both athletes representing their faculties on campus, and the family spend weekends at the gym and enjoy sporty holidays.

"I'm looking forward to trekking or skiing with them amid the sights and sounds of the mountains some day," he quipped.

ocheryl@sph.com.sg


(19-04-2014, 03:20 PM)greengiraffe Wrote: FCL gave more hints on the initial hospitality assets that could be anchoring its upcoming hospitality trusts.

In its maiden annual report pages 197 - 200, one can deduce by differentiating between completed investment properties and completed properties held for sale.

Under completed properties held for sale, I can only manage to trace down the following hospitality assets:

i) 80.5% held Fraser Suites Sydney with a (100%) book value of A$99m

ii) 87.5% held Fraser Suites Perth with a (100%) book value of A$125M

iii) 50% held Capri By Fraser, Changi City with a (100%) book value of S$101m. Viva REIT acquired the 251-room hotel in UE Bizhub East for a per key valuation of S$550k. Using similar benchmark, the 303-room Capri By Fraser, Changi City should be worth around $166.65m.

As the previously rumoured listing market cap of US$473m or S$600m for the hospitality reit, the classification of the above 3 assets sounds about right and TCC Assets may just need to contribute another 1 to 2 more assets for the initial listing assuming little gearing at the inception of the hospitality reit.

Vested
GG

(07-04-2014, 02:48 PM)greengiraffe Wrote: http://infopub.sgx.com/FileOpen/Frasers%...leID=20041

I did further research on FCL on the pending listing of Fraser Hospitality Trust. On page 59 of the maiden annual report, the net book value of hospitality assets are worth in excess of S$1.6bn. The entire division chalked up EBIT of $70m possibly implying an unleveraged yield of around 4.3%.

Based on previous media speculation of the float size, it appears that the intended hospitality trust could have a very healthy pipeline of assets (currently FCL already has more than 3 times the speculated float value) in the years ahead once the relatively immatured assets are being nurtured to maturity. The pipeline may be enhanced with the indicated participation of unlisted parent TCC Assets.

Other catalysts for FCL going forward includes:

i) further asset light strategies on its retail mall assets - speculated next up to be 50% owned Changi City Point
ii) interim dividends payable based on its track record of unlisted entity. FCL paid an adjusted 6.9 cents DPS last years - a 50% payout ratio
iii) streamlining of F&N and FCL holdings between TCC and Inter Bev (Thai Bev)
iv) eventual improvement in free float of FCL that will enhance institutional participation and potential inclusion in major stock indices.

Vested
GG

(31-03-2014, 10:26 PM)greengiraffe Wrote: Recap:

http://infopub.sgx.com/Apps?A=COW_CorpAn...7700387B4B

6 Feb 14 - "Thai tycoon Charoens FCL eyes $473 mln hospitality REIT in Q2 sources".

http://infopub.sgx.com/FileOpen/FCL-Tham...eID=286023

12 Mar 14 - RECEIPT OF ELIGIBILITY-TO-LIST FOR PROPOSED REIT LISTING

http://infopub.sgx.com/FileOpen/Frasers_...eID=288920

31 Mar 14 - Marking Sweet 16 with 92

Facts: PBIT for Hospitality S$69.7m or 12% of total group PBIT for year ending 30 Sept 2013.

With financial engineering for the floating of REIT and with the potential participation of TCC Group, it appears that another platform for value creation will soon be established.

Vested
GG
Reply
PUBLISHED APRIL 22, 2014
ASIAN LEADERS
Making all the right deals

Chotipat Bijananda, 'the in-house investment banker' of Thai conglomerate TCC, is helping the group to become a global player, reports FRANCIS KAN
PRINT |EMAIL THIS ARTICLE
BT 20140422 FKASIAN 1052849
'As the person running the Family Office, I have to make sure that the family does not invest in any asset that is high risk. We make sure that we understand the business we are in.'
- Chotipat Bijananda, adviser to the TCC Group
- ARTHUR LEE

WHEN Chotipat Bijananda was newly married to the daughter of Charoen Sirivadhanabhakdi, the founder of the Thai conglomerate TCC Group and one of Thailand's richest man, he was approached by his father-in-law to join the family business.
The patriarch was looking to tap his new son-in-law's extensive deal-making experience as a former senior banker with Deutsche Bank and JPMorgan to help grow the business - a sprawling collection of enterprises in the beverages, property, financial services, consumer goods and agricultural sectors. At the centre of this empire is Singapore-listed Thai Beverage, a maker of beer and spirits that include the best-selling Chang Beer.
Mr Chotipat was not quite ready to give up his banking career, but naturally found it difficult to resist the advances of one of the country's most high-profile entrepreneurs, and someone he looked up to personally. His resistance wasn't helped by the fact that he lived in the same building as Mr Charoen and his other children, who all play key roles within the group.
"He kept coming to my floor every day to change my mind. When I was in banking I had freedom, and when you join the family business, you can't resign. You can't even retire," he said with a laugh.
In a sign of how busy things have gotten for Mr Chotipat since he joined TCC some eight years ago, the 51-year-old spoke to The Business Times for this interview at a Changi Airport lounge barely an hour before he was due to board a flight back to Bangkok. And it wasn't his last appointment before takeoff.
What eventually won him over was the chance to work with 69-year-old Mr Charoen, one of the region's shrewdest and most successful businessman, whose rags to richest tale has inspired a generation of Asian entrepreneurs.
"He has been working for himself since he was seven years old, so I've learnt a lot about business from him, like how he protects himself from risk. His concept is to begin with the worst situation," he explained.
He added: "I work closely with the chairman to formulate a strategy to make sure that we make a move in the right direction to make it a success."
He holds the title of adviser to the TCC Group - although he more accurately describes his role as being the company's in-house investment banker, evaluating and working on M&A deals to help the group realise its long-term goal of building a global enterprise. As president of the Southeast Group Co, he also runs the insurance arm of the group, and sits on the boards of various operating subsidiaries.
In a more personal role, he has been entrusted with managing the family's private fortune as head of its Family Office - a private investment platform to manage its considerable wealth.
More recently, he joined the board of Singapore's Fraser & Neave (F&N), which TCC acquired last year after a high-profile tussle for control. Mr Chotipat played a key role in negotiating the deal, which he refers to as the "Singapore transaction".
"We didn't think that the (Lee family) would sell the shares. They had owned it for many years. This is a very old company in Singapore, and it was not a deal that was easy to conclude," he revealed.
He attributes their success in snagging the iconic Singapore firm to "chemistry between buyer and seller". The acquisition also signalled TCC's intention to transform itself into a regional powerhouse by capitalising on synergies between the two groups, as well as the integration of South-east Asia's economies. F&N, which recently celebrated its 130th anniversary, is a regional player in the food and beverage, property, and publishing and printing industries.
After joining TCC, Mr Chotipat has had to adopt a much longer-term outlook when evaluating deals compared to his banking days.
"As a banker you think about the transaction to help the client be successful. But as now I represent the owner of the business, I have to think about value creation in the long term. Any deal I do I have to think about it in the long term. I have to change my mindset to that of an entrepreneur," he explained.
That also means taking a more conservative approach when investing, whether for TCC businesses or the Family Office. He evaluates an investment's risk by first determining the worst case scenario if it were to go sour, and then assessing the quality of the asset.
"I want to make sure the investment is in the right direction, that it is safe. As the person running the Family Office, I have to make sure that the family does not invest in any asset that is high risk. We make sure that we understand the business we are in," he said.
As for Thailand's current political woes and the risks they pose, he believes that the nature of TCC's businesses shields them from the uncertainty to a certain extent. While there has been some impact on the group's consumer and insurance segments - although the market penetration of the latter in Thailand is still low - the core beverage business has weathered the storm very well.
"The economic impact is mainly on the hotel and tourism business, but in the beverage business when people are happy they drink, when they are sad they also drink," he said.
But looking ahead, TCC has plans that stretch far beyond its home market of Thailand. Its strategy following the Singapore acquisition is focused single-mindedly on diversifying abroad.
"We are aiming for international markets, and to diversify more into Europe and the US and Asia. I believe that in some European countries there is a good opportunity to go in at a reasonable price. We want to be a global player," he said.
Such lofty ambitions might justify his heightened workload following his departure from banking and his subsequent entry into TCC. And even if he did want to take a break from work, it's unlikely that Mr Chotipat's illustrious father-in-law would let him.
"I mentioned to him that at 60 I wanted to retire, but he told me he is 70 and still working. The work-load is a lot. When I was working with the bank, I used to play golf every week. Now with the family, I play maybe every quarter," he said, chuckling.
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