FEHT could join hands with tycoon Tanoto family to unlock value for the Reit
A joint redevelopment of the Reit’s Orchard Rendezvous Hotel with the Tanoto family’s Tanglin Shopping Centre could revitalise the sleepy Orchard-Tanglin corner
FAR East Hospitality Trust (FEHT) offers one of the few remaining pure-play Singapore real estate investment trusts (S-Reits), which would appeal to investors averse to risks in overseas property markets.
The stapled group – backed by the Far East Organization group, controlled by the family of the late tycoon Ng Teng Fong – owns a string of hotels and serviced residences in Singapore.
FEHT’s aggregate leverage of 31.5 per cent as at Mar 31, 2024, reflects one of the lowest gearing among S-Reits. This, along with an interest coverage ratio of 3.4 times, should provide comfort to investors in these times of high interest rates.
