The IPO will start on 1 July 2014 and ends on 10 July 2014 12pm.

It will start
trading on 14 July 2014 at 2pm.

The IPO pricing would give investors an indicative yield of 7 per cent per annum,
according to Frasers Hospitality Trust.
Frasers Hospitality will sell 182.1 million stapled securities at S$0.88 apiece in its
upcoming IPO.
A further 232.9 million stapled securities will be issued to cornerstone investors, such
as DBS and Fortress Capital Asset Management, at the same price.

Frasers Hospitality - which has a portfolio of 12 properties including the
InterContinental Singapore and Westin Kuala Lumpur hotels - will start trading on the
Singapore Exchange on July 14.
Its market capitalisation will be around S$1.04 billion based on the IPO price,
according to the prospectus.

Frasers Hospitality is managed by Frasers Centrepoint, the former property arm of
Singapore's Fraser and Neave.
Its initial portfolio comprises six serviced residences from Frasers Centrepoint -
Fraser Suites Singapore, Fraser Suites Sydney, Fraser Place Canary Wharf, Fraser
Suites Queens Gate, Fraser Suites Glasgow, and Fraser Suites Edinburgh.

The other six properties are from Frasers Centrepoint's Thai parent TCC Group.
They are the InterContinental Singapore, Novotel Rockford Darling Harbour, Park
International London, Best Western Cromwell London, ANA Crowne Plaza Kobe and
Westin Kuala Lumpur.


The properties are not running at full occupancy, in this regard, there could be some
upside should the management find ways to up the occupancy rate.

Over-allotment

There will be an over-allotment option of around 35.6m units in case of
"overwhelming" demand. Retail investors would be better off should such over-
allotment be exercised so as to create some price support on its debut.

Distribution

There will be semi-annual distributions for periods ending 31 March and 30 Sep each
year.

The distribution yield is around 7% after top-up and drops to 6.5% should the top-up
be removed.

Cornerstone Investors

Cornerstone investors took in around 232.949m units. The cornerstone investors
are
DBS and DBS private bank
Fortress Capital
Metro Holdings Ltd
Family office of SingHaiYi and Shanghai Summit.

What I like about FHT
The sponsor and it associate will continue to hold 65% of FHT post IPO
(assuming over-allotment is not exercised). This creates alignment of interest.
Experienced board and management team
Downside protection through Master Lease and Tenancy Agreement coupled
with Sponsor's corporate guarantee
A good pipeline of acquisition properties from the Sponsor
Long leasehold period and further upside if occupancy improves

My Concerns
The properties are spread all over the globe and some are not in key cities
(e.g Kobe, Glasslow). In addition, it is a mix bag of luxury, upscale and budget
types accommodation. While this may create diversification, there is frankly
no synergies for joint marketing among the properties.