FRASERS COMMERCIAL TRUST
ND8U.SI
Frasers Commercial Trust - HPE Vacates Sizeable Space At ATP
- Frasers Commercial Trust’s (FCOT) announced that Hewlett-Packard Enterprise Singapore Pte Ltd (HPE) intends to vacate 178,843 sqft out of the 191,846 sqft of space it currently occupies at Alexandra Technopark (ATP) upon the expiration of relevant leases on 30 September and 30 November 2017.
- The vacated space by HPE constitutes ~17.1% of the total NLA of ATP and 6.6% of FCOT’s total gross rental income as at 30 June 2017.
- We note that the Manager has already secured commitment by a tenant to backfill ~24k sqft of the vacated space, and will continue efforts to normalize occupancy at ATP.
- This development has been largely factored into our existing forecast as we assumed a conservative outcome arising from HPE's lease expiries.
- Separately, we note that the Manager is still in discussions with Hewlett-Packard Singapore Pte Ltd (HPS), which currently occupies an even larger space of ~304,920 sqft at ATP under leases expiring on 30 November 2017.
- We maintain our HOLD rating with an unchanged fair value of S$1.42.
Joseph Ng
OCBC Investment
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http://www.ocbcresearch.com/
2017-09-25
OCBC Investment
SGX Stock
Analyst Report
1.420
Same
1.420
