Far East Orchard considers Australian listing of hospitality trust

By IVCPOST Staff Reporter

Oct 25, 2013 12:27 AM EDT

Far East Orchard was thinking of listing a hospitality-focused real estate investment trust or REIT in Australia. The company was focused solely in its home country Singapore before entering Australia. The firm expanded its operations in the country to take advantage of the booming tourism industry.

In an interview in Singapore, Far East Orchard Chief Executive Officer Lucas Chow said, "We definitely are looking at the possibility. One way to recycle the capital is to inject the asset into a REIT." The company's Singapore-listed REIT, the Far East Hospitality Trust, was able to raise USD 580 million or SGD 717.6 million in 2012. Its offer document showed that it initially had 11 properties.

Far East Orchard entered the Australian tourism market through joint ventures with Toga Pty and The Straits Trading Co. It holds a 70% stake in its partnership with Straits Trading. The joint venture enabled Far East Orchard to own three hotels in Australia. Meanwhile, the Singapore firm also has 50% stake in the joint venture it formed with Toga. The firm operates 50 hotels and residences in Australia, New Zealand, Germany and Denmark.

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