Hong Kong-listed Far East Consortium International Ltd., a construction firm involved in integrated resort development in Australia, is considering a spin-off and separate listing some of its hospitality projects Down Under as well as in Singapore, Malaysia and the UK.
Asian media report that the spin-off would likely involve the six hotels Far East Consortium currently operates in Malaysia, along with two hotels in London and one in Singapore.
It would also incorporate Far East Consortium’s integrated resort developments in Australia: the company is a 25 percent joint venture partner in Destination Brisbane Consortium, now developing the AU$3.6 billion (US$2.46 billion) Queen’s Wharf Brisbane. Its partners are the Star Entertainment Group and Chow Tai Fook. It also holds a 5 percent stake in Star.
Far East Consortium said the spin-off and listing of selected hospitality assets would be on an unnamed overseas securities exchange in the form of a stapled trust group, comprising a real estate investment trust and a business trust, Inside Asian Gaming reported.
“The board believes that the potential spin-off and separate listing, if it proceeds, would among others: (i) create an asset management platform for the group dedicated to hospitality assets, which would generate a new income stream to the group, (ii) unlock and crystallize the value of the hospitality properties of the group, and allow the group to recycle capital, and (iii) facilitate more active third-party hotel acquisitions using the spun-off entity,” the company said.
