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Top Southeast Asia Property Deal Looming at F&N: Real M&A

Top Southeast Asia Property Deal Looming at F&N: Real M&A - Southeast Asia - Singapore

Fraser & Neave Ltd. (FNN), the 129-year- old conglomerate selling its brewery business, is poised to fracture further as the chance to own a piece of Singapore’s most famous shopping strip lures buyers.

After Heineken NV (HEIA) acquires F&N’s stake in a brewery they own for S$5.4 billion ($4.3 billion), the Singaporean company will still own businesses ranging from soft drinks to apartment buildings. An acquirer may pay as much as S$7.7 billion for the Frasers Centrepoint Ltd. property unit, 71 percent more than is reflected in F&N’s share price, said Religare Capital Markets Ltd. That would be Southeast Asia’s largest real-estate deal, according to data compiled by Bloomberg.

Rent in Singapore has remained high as the population surged 18 percent in five years and the city attracts a million visitors a month, data compiled by Bloomberg show. F&N’s 332,261-square foot mall on Orchard Road, the city’s biggest tourist attraction, and over 7,000 furnished apartments from Europe toAustralia may lure foreign buyers, including billionaire Li Ka-Shing’s Cheung Kong Holdings Ltd. (1), said DMG & Partners Securities Pte. With similar assets and S$5.1 billion of cash, Singapore’s CapitaLand Ltd. (CAPL) is a natural buyer, according to Henderson Global Investors Ltd.


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