Frasers Centrepoint Ltd (FCL) - DBS Research 2017-04-04: Heaven in the City of Angels

Frasers Centrepoint Ltd (FCL) - DBS Vickers 2017-04-04: Heaven in the City of Angels FRASERS CENTREPOINT LIMITED TQ5.SI

Frasers Centrepoint Ltd (FCL) - Heaven in the City of Angels

  • Unveiling of the 2m square metre mixed development, One Bangkok, “a new global landmark destination” in Bangkok.
  • Frasers Centrepoint Ltd (FCL) to participate via 20% JV with parent company, TCC Group.
  • Progressive completion from 2021 onwards.
  • Total estimated development cost is THB120bn (US$3.5bn).



What’s New 


“Once in a life-time opportunity” 

  • Frasers Centrepoint Ltd (FCL) entered into a new 20:80 JV with parent company via TCC Assets to jointly develop One Bangkok, which is primed as “a new global landmark destination” in Bangkok, the City of Angels in Asia. 
  • This is a rare opportunity and entrusted by the Crown Property Bureau to turn the prime plot of land into a masterpiece in the heart of Bangkok.

New landmark in Bangkok. 

  • When completed, One Bangkok will be a mixed development with gross floor area (GFA) of 1.83m square metre (sqm). The development sits on close to 0.2m sqm of land (of which half of the land will remain as greenery and open spaces). The envisaged plan for the integrated development includes office towers, luxury and lifestyle hotels, retail, and ultra-luxury residential towers. 
  • In addition, it will have direct linkages to mass transit systems next to the Lumphini Park, which will be a key selling point for home owners, tenants and investors. 
  • The project is expected to unfold progressively with the first opening targeted by 2021. The estimated total development cost is over THB 120bn (approximately US$3.5bn).  
  • FCL’s capital commitment is up to THB7.1bn (approximately S$288m) out of a total capital commitment of THB35.8bn (approximately S$1.4bn) to be injected over the period of the development. The remaining 70% of the estimated development cost will likely be debt funded.

Premier master-planer with extensive real estate capabilities.

  • We believe this is a testament of FCL’s capabilities as an established master planner / developer, and skillsets to be involved in the “largest private sector property development initiative undertaken in Thailand” following its successful Central Park development in Sydney and various mixed development projects in Singapore. 
  • While the immediate financial impact may not be huge in the near-term, we believe the successful execution of this project will further elevate FCL’s reputation and brand name as a renowned property developer both in Thailand and globally.


BUY, TP S$2.00 maintained. 

  • We maintain our BUY rating on FCL for its attractive valuation at 0.7x P/NAV, and offering one of the highest dividend yields among developers at c.5%. 
  • Key catalysts include potential asset monetisation from ongoing strategies to crystallise value across its portfolios, potential recovery in the property market in Singapore with the recent positive sentiment in the property market, and less-than-expected impact from the tightening measures in the property market in Australia.




Rachel TAN DBS Vickers | Derek TAN DBS Vickers | http://www.dbsvickers.com/ 2017-04-04
DBS Vickers SGX Stock Analyst Report BUY Maintain BUY 2.000 Same 2.000



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