Perpetual’s IPO indicative of the strong demand for cross border trustee services.
The Initial Public Offer (IPO) of the Frasers Hospitality Trust in Singapore on Monday was indicative of the strong demand for cross border trustee services in the region, according to Perpetual.
Listed on the Singapore Stock Exchange on 14 July 2014, Perpetual Corporate Trust is the trustee for the newly listed Singapore real estate investment trust (REIT) and also trustee for the assets that the REIT holds in Australia – the Novotel Rockford Darling Harbour and Frasers Suites, Sydney.
Frasers Hospitality Trust holds hotels and serviced residences in Singapore and across the region and raised S$365.2million. The REIT also has a right of first refusal to purchase six further hospitality assets in Australia including Sofitel Sydney Wentworth, InterContinental, Adelaide, Hyatt Hotel Canberra, Fraser Place Melbourne, Capri by Fraser, Brisbane and Fraser Suites Perth.
“Singapore continues to grow as a major regional hub for REITs,” said Andrew Cannane, Perpetual’s General Manager Corporate Clients. “We continue to experience strong demand for our Singapore trustee services as well as trustee services for cross-border transactions incorporating Australian assets.”
Mr Cannane said Perpetual is currently working on a number of other S-REIT mandates that may list in the remainder of this calendar year.
The IPO of the Frasers Hospitality Trust further boosts the thriving Singapore IPO market, with a recent APREA report, sponsored by Perpetual, naming Singapore as one of the top two REIT markets in Asia Pacific due to its strong regulatory framework, reporting, valuation guidelines and governance in relation to related party transactions.
“Perpetual’s expansion into Singapore, following the acquisition of The Trust Company, means we are uniquely placed as the only trustee with licences in Singapore and Australia. Therefore we are able to provide our expertise in both markets and facilitate cross-border transactions between the two regional neighbours,” Mr Cannane said.
“With the pilot of the Asian Regional Funds Passport set to commence in January 2016, we expect to see cross-border flows continue to grow and we will be well placed to help clients across Australia and Singapore take advantage of this emerging regional collaboration,” he said.
