Enhancing
Resilience
Annual Report 2019
Experience matters.
We believe our customers’ experience matters.
When we focus on our customers’ needs, we gain valuable insights
which guide our products and services. We create memorable and
enriching experiences for our customers.
We believe our experience matters.
Our legacy is valuable and inspires our future successes. As a
multi-national business of scale and diversity, we can bring the
right expertise to create value for our customers. We celebrate the
diversity of our people and the expertise they bring, and we commit
ourselves to enabling their professional and personal development.
Glossary
For ease of reading, this glossary provides definitions of acronyms that are frequently used throughout this report
Frasers Property entities
Other acronyms
FCT
FCOT
FHT
FLT
FPA
FPC
FPE
FPHT
FPI
FPL
FPS
FPT
FPUK
FPV
FTREIT
GOLD
GVREIT
The Group
: Frasers Centrepoint Trust
: Frasers Commercial Trust
: Frasers Hospitality Trust
: Frasers Logistics & Industrial Trust
: Frasers Property Australia
: Frasers Property China
: Frasers Property Europe
: Frasers Property Holdings Thailand
: Frasers Property Industrial
: Frasers Property Limited
: Frasers Property Singapore
: Frasers Property Thailand
: Frasers Property United Kingdom
: Frasers Property Vietnam
: Frasers Property Thailand Industrial Freehold &
Leasehold REIT
: Golden Land Property Development Plc
: Golden Ventures Leasehold Real Estate Investment Trust
: Frasers Property Limited, together with our subsidiaries
APBFE
: Attributable profit before fair value
AUM
BCA
CBD
DPU
EMTN
ERM
FY
GDP
GDV
GFA
GLA
GRESB
IR
JV
MTN
NAV
NLA
NPI
PBIT
PGIM ARF
PSF
PSM
REIT
RevPAR
SBU
SGX-ST
SQM
WALE
change and exceptional items
Investor relations
: Assets under management
: Building and Construction Authority, Singapore
: Central business district
: Distribution per unit
: Euro medium-term notes
: Enterprise-wide Risk Management
: Financial year
: Gross domestic product
: Gross development value
: Gross floor area
: Gross lettable area
: Global Real Estate Sustainability Benchmark
:
: Joint venture
: Medium-term notes
: Net asset value
: Net lettable area
: Net property income
: Profit before interest and taxation
: PGIM Real Estate AsiaRetail Fund
: Per square foot
: Per square metre
: Real estate investment trust
: Revenue per available room
: Strategic business unit
: Singapore Exchange Securities Trading Limited
: Square metres
: Weighted average lease expiry
• All figures in this Annual Report are in Singapore currency unless otherwise specified
Corporate
Information
Board of Directors
Mr Charoen Sirivadhanabhakdi
Non-Executive and Non-Independent
Chairman
Khunying Wanna Sirivadhanabhakdi
Non-Executive and Non-Independent
Vice Chairman
Mr Panote Sirivadhanabhakdi
Group Chief Executive Officer
Executive and Non-Independent
Director
Mr Charles Mak Ming Ying
Non-Executive and Lead
Independent Director
Mr Chan Heng Wing
Non-Executive and Independent
Director
Mr Philip Eng Heng Nee
Non-Executive and Independent
Director
Mr Tan Pheng Hock
Non-Executive and Independent
Director
Mr Wee Joo Yeow
Non-Executive and Independent
Director
Audit Committee
Mr Charles Mak Ming Ying
(Chairman)
Mr Philip Eng Heng Nee
Mr Wee Joo Yeow
Mr Sithichai Chaikriangkrai
Risk Management Committee
Mr Chotiphat Bijananda (Chairman)
Mr Charles Mak Ming Ying
Mr Chan Heng Wing
Mr Weerawong Chittmittrapap
Mr Panote Sirivadhanabhakdi
Mr Sithichai Chaikriangkrai
Remuneration Committee
Mr Philip Eng Heng Nee (Chairman)
Mr Charles Mak Ming Ying
Mr Chan Heng Wing
Nominating Committee
Mr Weerawong Chittmittrapap
(Chairman)
Mr Charles Mak Ming Ying
Mr Chan Heng Wing
Mr Chotiphat Bijananda
Mr Reini Otter
Chief Executive Officer
Frasers Property Industrial
(Appointed on 1 October 2019)
Company Secretary
Ms Catherine Yeo
Registered Office
438 Alexandra Road
#21-00 Alexandra Point
Singapore 119958
Tel: (65) 6276 4882
Fax: (65) 6276 6328
frasersproperty.com
Share Registrar
Tricor Barbinder Share
Registration Services
80 Robinson Road
#02-00
Singapore 068898
Tel: (65) 6236 3333
Fax: (65) 6236 3405
Auditors
KPMG LLP
Group Management
Mr Panote Sirivadhanabhakdi
Group Chief Executive Officer
Partner-in-charge:
Mr Ronald Tay Ser Teck
(Appointed on 29 January 2016)
Principal Bankers
Australia and New Zealand Banking
Group Limited
Bangkok Bank Public Company
Limited
Bank of China Limited
DBS Bank Ltd.
Malayan Banking Berhad
Mizuho Bank, Limited
Oversea-Chinese Banking
Corporation Limited
Standard Chartered Bank
Sumitomo Mitsui Banking
Corporation
Ms Zheng Wanshi
Group Chief Strategy and Planning
United Overseas Bank Limited
Mr Chia Khong Shoong
Group Chief Corporate Officer
Mr Loo Choo Leong
Group Chief Financial Officer
Mr Uten Lohachitpitaks
Group Chief Investment Officer
Mr Sebastian Tan
Group Chief Human Resources
Mr Samuel Tan
Group Chief Digital Officer
Mr Christopher Tang Kok Kai
Chief Executive Officer
Frasers Property Singapore
Mr Rodney Vaughan Fehring
Chief Executive Officer
Frasers Property Australia
Mr Koh Teck Chuan
Chief Executive Officer
Frasers Hospitality
Mr Weerawong Chittmittrapap
Non-Executive and Independent
Officer
Mr Chotiphat Bijananda
Non-Executive and Non-Independent
Officer
Mr Sithichai Chaikriangkrai
Non-Executive and Non-Independent
Director
Director
Director
Board Executive Committee
Mr Charoen Sirivadhanabhakdi
(Chairman)
Mr Charles Mak Ming Ying
(Vice Chairman)
Mr Chotiphat Bijananda
(Vice Chairman)
Mr Wee Joo Yeow
Mr Panote Sirivadhanabhakdi
Mr Sithichai Chaikriangkrai
19_0111 FPL AR 2019 Cover _TP.indd 4-6
9/12/19 4:59 PM
Contents
Annual Report 2019 1
p4
Our Businesses
p8
Our Milestones
2
4
6
8
10
11
12
19
24
28
38
92
94
96
138
141
143
174
350
401
402
404
410
Corporate Narrative
FPL Group Strategy
Our Businesses
Our Multi-national Presence
Our Milestones
Group Structure
Financial Highlights
Board of Directors
Group Management
Chairman’s Statement
In Conversation with the Group CEO
Business Review
• Singapore
• Australia
• Hospitality
• Europe and rest of Asia
Investor Relations
Treasury Highlights
Sustainability Report
Awards and Accolades
Enterprise-Wide Risk Management
Corporate Governance Report
Financial Statements
Particulars of Group Properties
Interested Person Transactions
Shareholding Statistics
Notice of Annual General Meeting
Additional Information on Directors
Seeking Re-Appointment
Proxy Form
FPL Fact Sheet
Corporate Information
p28
In Conversation with
the Group CEO
p38
Business Review
p96
Sustainability Report
p174
Financial Statements
01_Contents.indd 1
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2 Frasers Property Limited
Corporate
Narrative
At Frasers Property Limited, we aspire to be a world-class multi-national owner-
operator-developer of real estate products in dynamic and resilient markets, and
provider of real estate services. Guided by our unifying belief that experience
matters, we are committed to deliver enriching and memorable experiences to
meet the ever-evolving needs of businesses and communities.
Today, we provide an integrated portfolio and services across the property value
chain. We have businesses in Southeast Asia, Australia, Europe and China, and
our well-established hospitality footprint spans more than 70 cities across Asia,
Australia, Europe, Middle East and Africa.
Our multi-national businesses operate across five asset classes and have a proven
legacy of shaping successful residential, hospitality, retail, commercial & business
parks, and industrial & logistics properties, with total assets of $37.6 billion as at
30 September 2019. We are also a sponsor of four vehicles listed on the SGX-ST,
comprising three real estate investment trusts (REITs) focused on retail, commercial
& business parks, and industrial & logistics properties, and one stapled trust
focused on hospitality properties. In addition, the Group has two REITs listed on
the Stock Exchange of Thailand. Frasers Property Thailand is the sponsor of Frasers
Property Thailand Industrial Freehold & Leasehold REIT, which is focused on
industrial & logistics properties in Thailand. Golden Land Property Development
Public Company Limited is the sponsor of Golden Ventures Leasehold Real Estate
Investment Trust, which is focused on commercial properties.
Across all our businesses, an unwavering respect for people and partnerships
has been the foundation for how we conduct ourselves. We strive to ensure our
products and services are guided by customer insights and create environments
our customers can thrive in. Our legacy of strong leadership, expertise and
integrity, commitment to progress, and belief that experience matters at every
moment, remain key to our continued success.
FPL Group
Strategy
Balanced
Portfolio
Grow asset portfolio
in a balanced manner
across geographies
and property
segments
Sustainable
Earnings Growth
Achieve sustainable
earnings growth
through investment
properties,
development
project pipeline and
fee income
Achieve
Sustainable
Growth and Deliver
Long-term
Shareholder Value
Optimise
Capital Productivity
Optimise capital
productivity through
REIT platforms
and active asset
management
initiatives
002_Corporate Narrative Rev1.indd 2
10/12/19 6:44 PM
Annual Report 2019 3
Total Assets ($’m)
9
.
2
3
6
,
7
3
.
,
1
2
6
5
2
4 3
9
0
0
7
2
,
.
.
4
4
0
2
4
2
,
.
7
6
6
0
3
2
,
5
1
0
2
6
1
0
2
7
1
0
2
1
8
1
0
2
9
1
0
2
Profit Before Interest and Taxation ($’m)
.
2
3
3
3
1
,
6
.
2
9
2
,
1
.
8
4
0
1
1
,
.
2
8
3
9
.
0
9
8
0
1
,
5
1
0
2
6
1
0
2
7
1
0
2
1
8
1
0
2
9
1
0
2
Attributable Profit ($’m)
.
2
1
7
7
.
1
9
8
2 6
7
9
5
.
.
6
9
4
7
3
.
0
6
5
Frasers Tower • Singapore
5
1
0
2
6
1
0
2
7
1
0
2
1
8
1
0
2
9
1
0
2
1
Certain accounting policies or accounting
standards had changed in the financial years ended
30 September 2015 and 30 September 2019.
Financial information for 2018 has
been restated to take into account the
retrospective adjustments on the adoption
of the new financial reporting framework,
Singapore Financial Report Standards
(International) framework (SFRS(I)) and new/
revised SFRS(I)
002_Corporate Narrative Rev1.indd 3
10/12/19 6:44 PM
Our
Businesses
Frasers Tower • Singapore
Wonderland, Central Park Sydney, New South Wales • Australia
Singapore
Frasers Property’s business in
Singapore comprises Frasers Property
Singapore (FPS), and two REITs listed
on the Singapore Exchange Securities
Trading Limited (SGX-ST) – Frasers
Centrepoint Trust (FCT) and Frasers
Commercial Trust (FCOT).
FPS builds, owns, develops and/
or manages residential, retail, and
offi ce and business space properties
in Singapore. Over the years, FPS has
developed over 21,000 quality homes
and currently oversees a portfolio
of 171 shopping malls, the majority
of which are strategically located
in various established residential
townships, and 10 offi ce, business
space and business park properties.
FCT’s property portfolio comprises
seven suburban malls in Singapore,
managed by FPS, with a combined
appraised value of $3.42 billion.
FCT also holds a 31.2% stake in
Hektar Real Estate Investment
Trust, a retail-focused REIT listed in
Malaysia, and a 24.8%³ stake in PGIM
Real Estate AsiaRetail Fund Limited
(PGIM ARF).
FCOT invests primarily in quality
income-producing commercial
properties and has a portfolio of six
quality commercial buildings. Two
properties are located in Singapore
and managed by FPS, three
properties are located in Australia,
and one property is located in the
United Kingdom (UK). FCOT’s portfolio
has a combined appraised value of
approximately $2.24 billion.
Australia
Frasers Property’s business in
Australia comprises Frasers Property
Australia (FPA) and Frasers Logistics
& Industrial Trust (FLT).
FPA is one of Australia’s major
diversifi ed property groups,
with current activities covering
the development of residential
land, housing and apartments,
commercial, retail and industrial
properties, investment property
ownership and management,
and property management. FPA
has offi ces in Sydney, Melbourne,
Brisbane and Perth. In addition, FPA
maintains residential sales offi ces in
Hong Kong, Shanghai and Singapore.
FLT, listed on the SGX-ST, has a
portfolio concentrated in major
logistics and industrial markets
in Australia, Germany and the
Netherlands. With a total gross
lettable area of approximately
2.2 million sqm across 91⁵ logistics
and industrial properties, FLT’s
portfolio is worth approximately
A$3.6 billion (approximately
$3.4 billion).
Hospitality
Frasers Property’s hospitality business
comprises Frasers Hospitality (FH) and
Frasers Hospitality Trust (FHT).
FH has interest in and/or manages
award-winning serviced residences,
hotel residences, and lifestyle
boutique hotels in over 70 cities
across Asia, Australia, Europe, the
Middle East and Africa.
The stable of brands were developed
to meet the evolving lifestyle needs
of today’s discerning travellers; the
gold-standard Fraser Suites, Fraser
Place and Fraser Residence for
extended stays; Modena by Fraser, a
mid-scale hotel residence that places
simplicity, and holistic wellness at
the heart of modern living; and Capri
by Fraser, an upscale, design-led
business hotel, with a focus on social
living. In addition, Frasers Hospitality
manages a portfolio of 34 upscale
boutique hotels in key cities in the
UK, operating under the Malmaison
and Hotel du Vin brands.
Including those in the pipeline,
FH’s global portfolio stands at over
21,000 units in more than 140
properties across over 70 cities.
FHT is the fi rst global hotel and
serviced residence trust to be listed
on the SGX-ST. FHT has 15 quality
properties strategically located
across key cities in Asia, Australia, the
UK, and Germany.
Includes the Singapore portfolio of PGIM ARF and excludes Eastpoint Mall, a third party-managed mall by FPS
1
2 As at 30 September 2019, includes FCT’s 40.0% interest in Waterway Point (which is held as a joint venture and is equity-accounted in the fi nancial
statements)
Including FPL’s direct stake, the Group’s stake in PGIM ARF is 87.9% as at 1 October 2019
3
4 As at 30 September 2019, includes FCOT’s 50.0% indirect interest in Farnborough Business Park (which is held as a joint venture and is equity-accounted in
the fi nancial statements)
Excludes 610 Heatherton Road, Clayton South, Victoria, Australia which is classifi ed as “Asset held for sale”
5
004-005_Our Businesses.indd 4
10/12/19 2:13 PM
Wonderland, Central Park Sydney, New South Wales • Australia
Fraser Suites Hamburg • Germany
Artist’s impression of One Bangkok • Thailand
United Kingdom
Frasers Property’s business in the
UK comprises Frasers Property UK
(FPUK). Over the years, FPUK has
successfully developed over 1,100
homes and holds $1.9 billion of
assets under management. FPUK
engages in residential and commercial
development activities as well as the
ownership and management of six
business parks in the UK.
China
Frasers Property’s business in China
comprises Frasers Property China
(FPC) which develops residential,
commercial, logistics and business
park properties. FPC has built 11,300
homes to date and has three projects
under development in Suzhou,
Shanghai and Chengdu.
Thailand
In Thailand, Frasers Property’s
business comprises an 80.8% deemed
stake in Frasers Property Thailand
Public Limited Company (FPT,
formerly known as TICON Industrial
Connection Public Company Limited),
which is listed on the Stock Exchange
of Thailand. FPT is one of the largest
industrial and logistics real estate
developers in Thailand. It owns and
manages factories and warehouses,
with a net lettable space of over
2.7 million sqm.
FPT is the manager and sponsor of
Frasers Property Thailand Industrial
Freehold and Leasehold REIT (FTREIT),
the largest industrial REIT listed on
the Stock Exchange of Thailand. FPT
has a 23.4% stake in FTREIT.
In August 2019, FPT completed
the voluntary tender off er and
successfully acquired 94.5% stake in
Golden Land Property Development
Plc (GOLD), transforming FPT into an
integrated real estate platform with
complementary real estate services,
spanning industrial & logistics,
residential, commercial, hospitality
and other related properties.
GOLD is the property manager and
sponsor of Golden Ventures Leasehold
Real Estate Investment Trust (GVREIT),
a commerical REIT listed on the Stock
Exchange of Thailand. GOLD has a
22.6% stake in GVREIT.
Frasers Property is also the
development manager of One Bangkok,
and has a 19.8% stake in this upcoming
project, the largest integrated precinct
in Thailand.
Vietnam
Frasers Property’s business in
Vietnam comprises Frasers Property
Vietnam (FPV), which is developing
Q2 Thao Dien, a residential-cum-
commercial project on a 1-hectare
prime site in District 2 of Ho Chi Minh
City. FPV also has a 75%-interest in
Me Linh Point, a 21-storey retail/
offi ce building in District 1, Ho Chi
Minh City.
Brede Steeg 1, ‘s-Heerenberg
• The Netherlands
Continental Europe
Frasers Property’s business in
Continental Europe comprises Frasers
Property Europe (FPE), which owns,
develops and manages a well-
diversifi ed and robust light industrial
and logistics property portfolio
in Germany, the Netherlands
and Austria.
FPE’s focus is on reputable tenants
in major submarkets of the active
geographies of the business. FPE adds
value through actively managing
properties that are critical to the core
activities of tenants. With offi ces in
Amsterdam, Cologne and Munich,
FPE has an ideal reach for the current
activities and regional markets of
the business.
004-005_Our Businesses.indd 5
10/12/19 2:14 PM
6 Frasers Property Limited
Our Multi-national
Presence
United Kingdom
Germany
The Netherlands
France
Austria
Spain
Switzerland
Hungary
Turkey
Saudi Arabia
Bahrain
Qatar
Oman
UAE
India
Nigeria
South Korea
China
Japan
Thailand
Vietnam
Malaysia
Singapore
Indonesia
Australia
Residential
Commercial & Business Parks
Industrial & Logistics
Hospitality
Retail
006-007_Multi-national Presence Rev1.indd 6
11/12/19 7:16 AM
Frasers Property
is a multi-national group with a
network of scalable platforms
in key markets.
5
Asset Classes
25
Countries
Residential
Australia
China
Malaysia
Singapore
Thailand
United Kingdom
Vietnam
Commercial &
Business Parks
Australia
China
Singapore
Thailand
United Kingdom
Vietnam
Industrial &
Logistics
Australia
Austria
China
Germany
Thailand
The Netherlands
Retail
Australia
Malaysia
Singapore
Thailand
Over
70
Cities
Hospitality
Australia
Bahrain
China
France
Germany
Hungary
India
Indonesia
Japan
Malaysia
Nigeria
Oman
Qatar
Saudi Arabia
Singapore
South Korea
Spain
Switzerland
Thailand
Turkey
United Arab
Emirates (UAE)
United Kingdom
Vietnam
Annual Report 2019 7
~7,500
Residential Units
Completed and
Settled in FY19
$8.31 billion
Commercial &
Business Parks
Assets Under
Management
$8.91 billion
Industrial & Logistics
Assets Under
Management
$10.01 billion
Retail
Assets Under
Management
$5.01 billion
Hospitality
Assets Under
Management
>21,5002
Hospitality Units
Group’s
REITs
Frasers Centrepoint Trust,
Frasers Commercial Trust,
Frasers Hospitality Trust³,
Frasers Logistics &
Industrial Trust,
Frasers Property Thailand
Industrial Freehold &
Leasehold REIT,
Golden Ventures
Leasehold REIT
1
2
3
Comprises property assets in which the Group has an interest, including assets held by its REITs, JVs and associates
Including both owned and managed properties, and units pending opening
Frasers Hospitality Trust is a stapled trust comprising Frasers Hospitality REIT and Frasers Hospitality Business Trust
006-007_Multi-national Presence Rev1.indd 7
11/12/19 7:17 AM
8 Frasers Property Limited
Our
Milestones
1988
• Centrepoint Properties
Limited (CPL) was listed on
the Main Board of Singapore
Exchange Securities Trading
Limited (SGX-ST)
1990
• CPL became a subsidiary of
Fraser and Neave, Limited
(F&NL)
1992
• Northpoint Shopping Centre,
Singapore’s pioneer suburban
retail mall in Yishun;
Bridgepoint, a retail mall in
Sydney; and Alexandra Point,
CPL’s fi rst offi ce project, were
launched
1993
• The Anchorage, CPL’s fi rst
residential project, was
redeveloped from F&N
Singapore’s old brewery and
soft drink plants
1996
• CPL’s fi rst overseas offi ce
project, Me Linh Point, a
commercial and retail centre
in Ho Chi Minh City, Vietnam
was developed
1997
• Alexandra Technopark, CPL’s
fi rst business space project
was developed and launched
1998
• CPL’s fi rst two hospitality
projects, Fraser Suites and
Fraser Place in Singapore,
were launched
2000
• Pavilions on the Bay in
Australia and Annandale
House in the United Kingdom
(UK), CPL’s fi rst overseas
residential projects, were
developed
2001
• Jingan Four Seasons in
Shanghai was CPL’s fi rst
residential project launched
in China
2002
• CPL launched serviced
residences in the UK, South
Korea and the Philippines
• CPL was delisted from SGX-
ST and became a wholly
owned subsidiary of F&NL
2006
• CPL was rebranded Frasers
Centrepoint Limited (FCL)
• FCL launched its fi rst REIT,
Frasers Centrepoint Trust,
which is listed on the Main
Board of SGX-ST
2008
• FCL acquired a stake in Allco
Commercial REIT (Allco) and
the entire stake of Allco’s
manager, and rebranded the
REIT Frasers Commercial Trust
(FCOT). FCOT is listed on the
Main Board of SGX-ST
2013
• FCL became a member of
the TCC Group
2014
• FCL was listed by way of
introduction on the Main
Board of SGX-ST
• Frasers Hospitality Trust
was listed on the Main
Board of SGX-ST. It is the
fi rst global hotel and
serviced residence stapled
group to be listed on
SGX-ST
• FCL wholly acquired
Australand, an Australian
property company
2015
• FCL acquired leading
boutique lifestyle hotel
brands Malmaison and
Hotel du Vin in the UK
• Australand was rebranded
as Frasers Property
Australia
The Centrepoint • Singapore
Fraser Suites • Singapore
P8_Milestones.indd 8
10/12/19 2:20 PM
2018
FCL was rebranded to Frasers
Property Limited
Enhanced industrial and
logistics platform
• Completed part of Alpha
Industrial acquisition
comprising its platform and
12 of 22 assets
• Completed buy-out of
remaining 0.6% minority
stake in Geneba Properties
and delisted Geneba
• Rebranded Geneba and Alpha
Industrial to Frasers Property
Europe
• Increased deemed interest in
TICON1 from approximately
41.0% to 89.5%
Portfolio expanded to include
business parks in the UK
• Completed the acquisition of
fi ve wholly owned business
parks in the UK and one via a
50:50 joint venture with FCOT
Investments in the co-working
sector
• Joint investment of
US$176.9 million
($241.6 million) with GIC and
JustCo to develop an Asian
co-working platform
• TICON and JustCo formed
a 51:49 joint venture to
develop a co-working
business in Thailand
1
FPL holds approximately 41.0%
through its wholly owned
subsidiary, Frasers Property
Holdings Thailand Co., Ltd., and
48.5% through Frasers Assets
Co., Ltd., a 49:51 joint venture
with TCC Assets Co., Ltd.
2016
• Frasers Logistics & Industrial
Trust was listed on the Main
Board of SGX-ST
• FCL acquired a 35.6% stake
in Golden Land Property
Development Public
Company Limited (GOLD)
which is listed on the Stock
Exchange of Thailand
• FCL entered into a conditional
agreement to acquire a 70%
stake in a joint venture with
local partners to develop a
residential-cum-commercial
project in District 2, Ho Chi
Minh City, Vietnam. The
acquisition was completed
in 2017
2017
• FCL acquired a 99.5% stake
in Geneba Properties N.V.
(Geneba) which was listed in
the Netherlands
• FCL acquired an additional
4.3% stake in GOLD and
a 41.0% stake in TICON
Industrial Connection Public
Company Limited (TICON) in
Thailand. FCL entered into a
joint venture with TCC Assets
(Thailand) Co., Ltd to develop
One Bangkok, the largest
private sector property
development initiative
undertaken in Thailand
Annual Report 2019 9
2019
Enhanced sustainable
platforms
Scaled Singapore retail
platform with investment in
PGIM Real Estate AsiaRetail
Fund
• Frasers Property completed
the acquisition of a 63.1%
stake in PGIM Real Estate
AsiaRetail Fund Limited
Formed integrated industrial
and logistics operating
platform
• Combined industrial and
logistics operations in
Australia and Europe,
and asset and property
management to establish a
new strategic business unit,
Frasers Property Industrial
Hermes facility, Hamburg • Germany
Integrated real estate
platform with multi-segment
capabilities in Thailand
• Frasers Property Thailand
announced the successful
acquisition of 94.5% stake in
GOLD
Jingan Four Seasons, Shanghai • China Winnersh Triangle, Reading • UK
P8_Milestones.indd 9
16/12/19 10:18 AM
10 Frasers Property Limited
Group
Structure
Singapore
Australia
Europe
& rest of
Asia
Hospitality
Residential
Retail
Commercial & Business Parks
Industrial & Logistics
Hospitality
t
n
e
m
g
e
s
-
i
t
l
u
M
s
T
I
E
R
As at 30 September 2019
P10_Group Structure.indd 10
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Annual Report 2019 11
Financial
Highlights
2015
2016
2017
20181
2019
Revenue ($’m)
3,561.6
3,439.6
4,026.6
4,320.9
3,791.9
Profit before interest, fair value change on investment
properties, taxation and exceptional items ($’m)
1,104.8
938.2
1,089.0
1,333.2
1,292.6
Profit before taxation ($’m)
Before fair value change on investment properties and
exceptional items
955.4
796.0
968.0
1,033.5
923.6
After fair value change on investment properties and
exceptional items
1,196.5
960.3
1,248.0
1,527.0
1,353.1
Attributable profit ($’m)
Before fair value change and exceptional items
After fair value change and exceptional items
543.8
771.2
479.9
597.2
488.2
689.1
482.8
749.6
350.1
560.3
Earnings per share (cents)2
Attributable profit before fair value change on
investment properties and exceptional items
Attributable profit after fair value change on investment
17.2
14.3
14.6
13.9
8.7
properties and exceptional items
25.0
18.4
21.5
23.0
15.9
Dividend per share
Ordinary shares (cents)
8.6
8.6
8.6
8.6
6.0
Net asset value (share capital & reserves) ($’m)
6,509.5
6,661.1
7,154.7
7,469.0
7,404.4
Net asset value per share ($)
2.25
2.30
2.46
2.56
2.54
Return on average shareholders’ equity (%)3
Attributable profit before fair value change on
investment properties and exceptional items
Attributable profit after fair value change on
investment properties and exceptional items
7.7
11.2
6.3
8.1
6.1
9.0
5.5
9.1
3.4
6.3
Notes
1
2
Certain accounting policies or accounting standards had changed in the financial years ended 30 September 2015 and 30 September 2019
Financial information for 2018 has been restated to take into account the retrospective adjustments on the adoption of the new financial reporting
framework, Singapore Financial Report Standards (International) framework (“SFRS(I)”) and new/revised SFRS(I)
Based on weighted average number of ordinary shares in issue. In 2015, 2016, 2017, 2018 and 2019, weighted average number of shares was
2,457,316,000, 2,893,873,000, 2,898,893,000, 2,904,157,000, 2,910,558,000 and 2,917,873,000, respectively
3 After distributions to perpetual securities holders over average shareholders’ fund
P11_Financial Highlights.indd 11
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12 Frasers Property Limited
Board of
Directors
CHAROEN SIRIVADHANABHAKDI, 75
Non-Executive and
Non-Independent Chairman
Date of appointment as a director
25 Oct 2013
Present directorships in other companies
(as at 30 Sep 2019)
Length of service as director
5 years 11 months (as at 30 Sep 2019)
Listed companies
• Asset World Corp Public Company
Board committees served on
• Board Executive Committee (Chairman)
Academic & professional qualifications
• Honorary Doctoral Degree in Social
Science (Social Work), Mahamakut
Buddhist University, Thailand
• Honorary Doctoral Degree in Marketing,
Rajamangala University of Technology
Isan, Thailand
• Honorary Doctoral Degree in
Buddhism (Social Work) from
Mahachulalongkornrajavidyalaya,
Thailand
Limited* (Chairman)
• Berli Jucker Public Company Limited
(Chairman)
• Fraser and Neave, Limited (Chairman)
• Thai Beverage Public Company Limited
(Chairman)
• Thai Group Holdings Public Company
Limited (Chairman)
Listed REITs/Trusts
Nil
Others
• Bangyikhan Distillery Group of
Companies (Chairman)
• Honorary Doctorate Degree in Business
• Beer Thai (1991) Public Company
Administration, Sasin Graduate
Institute of Business Administration of
Chulalongkorn University, Thailand
Limited (Chairman)
• Cristalla Co., Ltd. (Chairman)
• International Beverage Holdings Limited
• Honorary Doctoral Degree in Hospitality
(Chairman)
Industry and Tourism, Christian
University of Thailand, Thailand
• Honorary Doctoral Degree in Sciences
and Food Technology, Rajamangala
University of Technology Lanna,
Thailand
• Honorary Doctoral Degree in
International Business Administration,
University of the Thai Chamber of
Commerce, Thailand
• Honorary Doctoral Degree in
Management, Rajamangala University of
Technology Suvarnabhumi, Thailand
• Honorary Doctor of Philosophy in
Business Administration, Mae Fah Luang
University, Thailand
• Honorary Doctoral Degree in Business
Administration, Eastern Asia University,
Thailand
• Honorary Doctoral Degree in
Management, Huachiew Chalermprakiet
University, Thailand
• Honorary Doctoral Degree in Industrial
Technology, Chandrakasem Rajabhat
University, Thailand
• Honorary Doctoral Degree in
Agricultural Business Administration,
Maejo Institute of Agricultural
Technology, Thailand
• North Park Golf and Sports Club Co., Ltd.
(Chairman)
• Plantheon Co., Ltd. (Chairman)
• Siriwana Co., Ltd. (Chairman)
• Southeast Group Co., Ltd. (Chairman)
• TCC Assets (Thailand) Company Limited
• TCC Asset World Corporation Limited
(Chairman)
• TCC Corporation Limited (Chairman)
• TCC Land Co., Ltd. (Chairman)
• TCC Group of Companies
Major appointments
(other than directorships)
Nil
Past directorships in listed companies
held over the preceding 3 years
(from 01 Oct 2016 to 30 Sep 2019)
• Big C Supercenter Public Company
Limited (It was delisted from Stock
Exchange of Thailand on 28 September
2017)
Past major appointments
Nil
Others
• Darjah Kebesaran Panglima Setia
Mahkota (P.S.M.) which carries the title
‘Tan Sri’ from Malaysia
• Royal Order of Sahametrei, Grand
Officer of the Most Noble Order of the
Rajamitrabhorn of Cambodia
*
Listed on The Stock Exchange of Thailand on
10 October 2019
P12_Board of Directors.indd 12
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KHUNYING WANNA
SIRIVADHANABHAKDI, 76
Non-Executive and
Non-Independent Vice Chairman
Annual Report 2019 13
Date of appointment as a director
07 Jan 2014
Others
• Beer Thip Brewery (1991) Co., Ltd.
(Chairman)
Length of service as director
5 years 8 months (as at 30 Sep 2019)
• Cristalla Co., Ltd (Vice Chairman)
• International Beverage Holdings Limited
(Vice Chairman)
• North Park Golf and Sports Club Co., Ltd.
(Vice Chairman)
• Plantheon Co., Ltd. (Vice Chairman)
• Sangsom Co., Ltd (Chairman)
• Siriwana Co., Ltd. (Vice Chairman)
• Southeast Group Co., Ltd.
(Vice Chairman)
• TCC Assets (Thailand) Company Limited
• TCC Asset World Corporation Limited
(Vice Chairman)
• TCC Corporation Limited (Vice Chairman)
• TCC Land Co., Ltd. (Vice Chairman)
• TCC Group of Companies
Major appointments
(other than directorships)
Nil
Past directorships in listed companies
held over the preceding 3 years
(from 01 Oct 2016 to 30 Sep 2019)
• Big C Supercenter Public Company
Limited (It was delisted from Stock
Exchange of Thailand on 28 Sep 2017)
Past major appointments
Nil
Others
• Royal Order of Cambodia, Grand
Cross of the Most Noble Order of
the Rajamitrabhorn (First Class)
in Diplomacy
Board committees served on
Nil
Academic & professional qualifications
• Honorary Doctoral Degree
in Buddhism (Social Work),
Mahachulalongkornrajavidyalaya,
Thailand
• Honorary Doctoral Degree
(Management), Mahidol University,
Thailand
• Honorary Doctorate of Philosophy
(Business Management), University of
Phayao, Thailand
• Honorary Doctoral Degree from the
Faculty of Business Administration and
Information Technology, Rajamangala
University of Technology Tawan-ok,
Thailand
• Honorary Doctor of Philosophy in Social
Sciences, Mae Fah Luang University,
Thailand
• Honorary Doctoral Degree in Business
Administration, Chiang Mai University,
Thailand
• Honorary Doctoral Degree in
Agricultural Business Administration,
Maejo Institute of Agricultural
Technology, Thailand
• Honorary Doctoral Degree in
Bio-technology, Ramkhamhaeng
University, Thailand
Present directorships in other companies
(as at 30 Sep 2019)
Listed companies
• Asset World Corp Public Company
Limited* (Vice Chairman)
• Berli Jucker Public Company Limited
(Vice Chairman)
• Fraser and Neave, Limited
(Vice Chairman)
• Thai Beverage Public Company Limited
(Vice Chairman)
• Thai Group Holdings Public Company
Limited (Vice Chairman)
Listed REITs/Trusts
Nil
*
Listed on The Stock Exchange of Thailand on
10 Oct 2019
P12_Board of Directors.indd 13
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14 Frasers Property Limited
Board of Directors
CHARLES MAK MING YING, 67
Non-Executive and
Lead Independent Director
CHAN HENG WING, 72
Non-Executive and
Independent Director
Date of appointment as a director
25 Oct 2013
Length of service as director
5 years 11 months (as at 30 Sep 2019)
Major appointments
(other than directorships)
• Senior Advisor to Morgan Stanley Asia’s
Investment Banking Division
• Pace University, USA (Board of Trustees)
Board committees served on
• Audit Committee (Chairman)
• Board Executive Committee
(Vice Chairman)
• Remuneration Committee
• Nominating Committee
• Risk Management Committee
Past directorships in listed companies
held over the preceding 3 years
(from 01 Oct 2016 to 30 Sep 2019)
Nil
Past major appointments
• Morgan Stanley Asia Pacific (Vice-
Chairman)
Academic & professional qualifications
• Master of Business Administration,
• Morgan Stanley International Wealth
Management (President)
PACE University, USA
• Chairman and Director of Bank Morgan
• Bachelor of Business Administration,
Stanley AG
PACE University, USA
• Director in Morgan Stanley Asia Limited
Present directorships in other companies
(as at 30 Sep 2019)
Listed companies
• Fraser and Neave, Limited
Listed REITs/Trusts
Nil
Others
Nil
and a member of Morgan Stanley’s
Asia Pacific Executive Committee, the
Morgan Stanley Wealth Management
Committee and the International
Operating Committee
• Managing Director and Head of Morgan
Stanley Asia Pacific Private Wealth
Management
• Executive Director and Senior
Investment Adviser of Morgan Stanley’s
Private Wealth Management Group
Others
Nil
Date of appointment as a director
25 Oct 2013
Major appointments
(other than directorships)
• Ministry of Foreign Affairs: Non-resident
Length of service as director
5 years 11 months (as at 30 Sep 2019)
Ambassador to Austria
• Milken Institute Asia Center (Senior
Board committees served on
• Nominating Committee
• Risk Management Committee
• Remuneration Committee
Academic & professional qualifications
• Master of Science, Columbia Graduate
School of Journalism, USA
• Master of Arts, University of Singapore
• Bachelor of Arts (Honours), University of
Singapore
Present directorships in other companies
(as at 30 Sep 2019)
Listed companies
• Banyan Tree Holdings Ltd.
• Fraser and Neave, Limited
Advisor)
Past directorships in listed companies
held over the preceding 3 years
(from 01 Oct 2016 to 30 Sep 2019)
Nil
Past major appointments
• Managing Director, International
Relations, Temasek Holdings
• Singapore’s Consul General to Hong
Kong and Shanghai
• Singapore’s Ambassador to Thailand
• Press Secretary to Prime Minister Goh
Chok Tong
• Director of the Media Division, Ministry
of Communications and Information
• Chief Representative of Temasek
International in China
Listed REITs/Trusts
• EC World Asset Management Pte Ltd
Others
Nil
Others
• One Bangkok Holdings Co., Ltd.
• Precious Quay Pte. Ltd.
• Precious Treasures Pte. Ltd.
P12_Board of Directors.indd 14
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PHILIP ENG HENG NEE, 73
Non-Executive and
Independent Director
TAN PHENG HOCK, 62
Non-Executive and
Independent Director
Annual Report 2019 15
Date of appointment as a director
25 Oct 2013
Others
• ALPS Pte. Ltd. (formerly known as
Length of service as director
5 years 11 months (as at 30 Sep 2019)
Board committees served on
• Remuneration Committee (Chairman)
• Audit Committee
Academic & professional qualifications
• Bachelor of Commerce in Accountancy,
University of New South Wales,
Australia
• Chartered Accountant (Singapore)
Present directorships in other companies
(as at 30 Sep 2019)
Listed companies
• PT Adira Dinamika Multi Finance Tbk
(Commissioner)
Listed REITs/Trusts
• Frasers Centrepoint Asset Management
Ltd, Manager of Frasers Centrepoint
Trust
• Hektar Asset Management Sdn
Bhd, Manager of Hektar Real Estate
Investment Trust
Agency for Healthcare Supply Chain Pte.
Ltd.)
• Frasers Hospitality International Pte.
Ltd.
• Frasers Property Australia Pty Limited
• Transmex Systems International Pte. Ltd.
Major appointments
(other than directorships)
• Ministry of Foreign Affairs: Singapore’s
Non-Resident High Commissioner to
Canada
Past directorships in listed companies
held over the preceding 3 years
(from 01 Oct 2016 to 30 Sep 2019)
• mDR Limited (Chairman)
• The Hour Glass Limited
• Ezra Holdings Limited
Past major appointments
• Group Managing Director, Jardine Cycle
and Carriage Group
Others
Nil
Date of appointment as a director
20 Mar 2017
Length of service as director
2 years 6 months (as at 30 Sep 2019)
Board committees served on
Nil
Major appointments
(other than directorships)
• Advisor of Accuracy Singapore
Past directorships in listed companies
held over the preceding 3 years
(from 01 Oct 2016 to 30 Sep 2019)
Nil
Academic & professional qualifications
• Master of Science (Management),
Stanford University, USA
• Bachelor of Science, Marine Engineering
Past major appointments
• President & CEO of ST Engineering
• Group President of ST Engineering
• Group’s President of Corporate Affairs,
(First Class Honours), University of
Surrey, UK
Present directorships in other companies
(as at 30 Sep 2019)
ST Engineering
• President of Singapore Technologies
Automotive Ltd, now known as ST
Kinetics
Listed companies
Nil
Listed REITs/Trusts
Nil
Others
• Design Education Review Committee
(Chairman)
• National Neuroscience Institute (NNI)
Fund Committee, SingHealth Fund
(member)
Others
• Outstanding CEO of the Year at the
Singapore Business Awards 2014
• Asia Business Leader of the Year at the
12th CNBC Asia Business Leaders Award
2013
• Esteemed Honorary Fellowship by
the Asean Federation of Engineering
Organisations (AFEO)
• The Best CEO (market cap of $1 billion
and above), Singapore Corporate
Awards 2012
• CNBC Asia Talent Management Award,
• The Civil Aviation Authority of Singapore
2009
(Board member)
• The first Asian Chief Executive to receive
the Walter L. Hurd Foundation World
Executive Medal by Asia Pacific Quality
Organisation
P12_Board of Directors.indd 15
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16 Frasers Property Limited
Board of Directors
WEE JOO YEOW, 72
Non-Executive and
Independent Director
WEERAWONG CHITTMITTRAPAP, 61
Non-Executive and
Independent Director
Date of appointment as a director
10 Mar 2014
Length of service as director
5 years 6 months (as at 30 Sep 2019)
Board committees served on
• Board Executive Committee
• Audit Committee
Major appointments
(other than directorships)
Nil
Past directorships in listed companies
held over the preceding 3 years
(from 01 Oct 2016 to 30 Sep 2019)
• Mapletree Industrial Trust Management
Ltd, Manager of Mapletree Industrial
Trust
Academic & professional qualifications
• Master of Business Administration, New
York University, USA
Past major appointments
• Managing Director and Head of
• Bachelor of Business Administration
(BBA Honours), University of Singapore
Corporate Banking Singapore, United
Overseas Bank Limited
Present directorships in other companies
(as at 30 Sep 2019)
Others
Nil
Listed companies
• PACC Offshore Services Holdings Ltd
• Oversea-Chinese Banking Corporation
Limited
• Great Eastern Holdings Limited
Listed REITs/Trusts
Nil
Others
• WJY Holdings Pte Ltd
• WTT Investments Pte Ltd
Date of appointment as a director
25 Oct 2013
Listed REITs/Trusts
Nil
Length of service as director
5 years 11 months (as at 30 Sep 2019)
Others
• Big C Supercenter Public Company
Board committees served on
• Nominating Committee (Chairman)
• Risk Management Committee
Academic & professional qualifications
• Thai Barrister-at-Law and the first Thai
lawyer admitted to the New York State
Bar
Limited
• SCB Life Assurance Public Company
Limited
Major appointments
(other than directorships)
• King Prajadhipok’s Institute (Special
Lecturer)
• Chulalongkorn University (Special
• Master of Law, University of
Lecturer)
Pennsylvania, USA
• Thammasat University (Special Lecturer)
• Bachelor of Law, Chulalongkorn
University, Thailand
Present directorships in other companies
(as at 30 Sep 2019)
Listed companies
• Asset World Corporation Public
Company Limited *
Past directorships in listed companies
held over the preceding 3 years
(from 01 Oct 2016 to 30 Sep 2019)
• Thai Airways International Public
Company Limited
Past major appointments
• Weerawong, Chinnavat & Partners
• Bangkok Dusit Medical Services Public
Limited (Chairman)
Company Limited
• Berli Jucker Public Company Limited
• SCB Life Assurance Public Company
Others
Nil
Limited
• Siam Commercial Bank Public Company
Limited
*
Listed on The Stock Exchange of Thailand on
10 Oct 2019
P12_Board of Directors.indd 16
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Annual Report 2019 17
Date of appointment as a director
08 Mar 2013
Length of service as director
6 years 6 months (as at 30 Sep 2019)
Board committees served on
• Risk Management Committee
(Chairman)
• Board Executive Committee
(Vice Chairman)
• Nominating Committee
Academic & professional qualifications
• Master of Business Administration,
Finance, University of Missouri, USA
• Bachelor of Laws, Thammasat
University, Thailand
Present directorships in other companies
(as at 30 Sep 2019)
Listed companies
• Fraser and Neave, Limited
• Frasers Property (Thailand) Public
Company Limited (formerly known as
TICON Industrial Connection Public
Company Limited)
• Golden Land Property Development
Public Company Limited
• Sermsuk Public Company Limited
• Thai Group Holding Public Co., Ltd.
Listed REITs/Trusts
Nil
Others
• Asiatig House Co., Ltd.
• Big C Services Co., Ltd.
• Charm Corp Circle Co., Ltd.
• Concept Land 5 Co., Ltd.
• Dhamma Land Property Company Limited
• DL Engineering Solutions Company
Limited
• Frasers Property Australia Pty Limited
• OHCHO Company Limited
• Pattana Bovornkij 4 Company Limited
• Permsub Siri 3 Company Limited
• Permsub Siri 5 Company Limited
• S Sofin Co., Ltd.
• Sinn Bualang Capital Co., Ltd.
• Sinn Bualang Leasing Co., Ltd.
• Southeast Academic Center Company
Limited
• Southeast Advisory Company Limited
• Southeast Capital Co., Ltd. (Chairman of
Executive Board)
• Southeast Group Co., Ltd. (President)
• Southeast Insurance Public Company
Limited (Chairman of Executive Board)
• Southeast Joint Venture Co., Ltd.
• Southeast Life Insurance Public Company
Limited (Chairman of Executive Board)
• Suansilp Pattana 1 Co., Ltd.
• TCC Group of Companies
• TCC Holdings (2519) Company Limited
• TCC Privilege Card Company Limited
• Tep Nimitr Thanakorn (2001) Co., Ltd.
• Thai Group Holdings PCL
Major appointments
(other than directorships)
Nil
Past directorships in listed companies
held over the preceding 3 years
(from 01 Oct 2016 to 30 Sep 2019)
Nil
Past major appointments
Nil
Others
Nil
Date of appointment as a director
07 Aug 2013
• Thai Beverage Public Company Limited
• Univentures Public Company Limited
Length of service as director
6 years 1 month (as at 30 Sep 2019)
Listed REITs/Trusts
Nil
Board committees served on
• Board Executive Committee
• Audit Committee
• Risk Management Committee
Academic & professional qualifications
• Bachelor of Accountancy (First Class
Honours), Thammasat University,
Thailand
• Diploma in Computer Management,
Chulalongkorn University, Thailand
• Certificate of the Mini MBA Leadership
Management, Kasetsart University,
Thailand
Present directorships in other companies
(as at 30 Sep 2019)
Listed companies
• Asset World Corporation Public
Company Limited*
• Berli Jucker Public Company Limited
• Fraser and Neave, Limited
• Golden Land Property Development
Public Company Limited
• Oishi Group Public Company Limited
• Siam Food Products Public Company
Limited
• Sermsuk Public Company Limited
Others
• Big C Retail Holding Company Limited
• Eastern Seaboard Industrial Estate
(Rayong) Company Limited
• Food and Beverage Holding Co., Ltd
• Petform (Thailand) Co., Ltd.
• TCC Assets (Thailand) Company Limited
• Thai Beverage Can Co., Ltd.
• Univentures REIT Management Co., Ltd.,
the manager of Golden Ventures REIT
Major appointments
(other than directorships)
• Thai Beverage Public Company Limited
(Chief Financial Officer)
Past directorships in listed companies
held over the preceding 3 years
(from 01 Oct 2016 to 30 Sep 2019)
Nil
Past major appointments
Nil
Others
Nil
*
Listed on The Stock Exchange of Thailand on
10 Oct 2019
CHOTIPHAT BIJANANDA, 55
Non-Executive and
Non-Independent Director
SITHICHAI CHAIKRIANGKRAI, 65
Non-Executive and
Non-Independent Director
P12_Board of Directors.indd 17
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18 Frasers Property Limited
Board of Directors
PANOTE SIRIVADHANABHAKDI, 41
Group Chief Executive Officer
Executive and Non-Independent
Director
Major appointments
(other than directorships)
• Singapore Management University
(Director/Board of Trustees)
• Real Estate Developers’ Association
of Singapore (REDAS) (Management
Committee)
Past directorships in listed companies
held over the preceding 3 years
(from 01 Oct 2016 to 30 Sep 2019)
• Berli Jucker Public Company Limited
Past major appointments
• Chief Executive Officer of Univentures
Public Company Limited
Others
Nil
Date of appointment as a director
08 Mar 2013
Length of service as director
6 years 6 months (as at 30 Sep 2019)
Board committees served on
• Board Executive Committee
• Risk Management Committee
Academic & professional qualifications
• Master of Science in Analysis, Design and
Management of Information Systems,
The London School of Economics and
Political Science, UK
• Bachelor of Science in Manufacturing
Engineering, Boston University, USA
• Certificate in Industrial Engineering and
Economics, Massachusetts University,
USA
Present directorships in other companies
(as at 30 Sep 2019)
Listed companies
• Frasers Property (Thailand) Public
Company Limited (formerly known as
TICON Industrial Connection Public
Company Limited)
• Golden Land Property Development
Public Company Limited (Vice Chairman)
• Thai Beverage Public Company Limited
• Univentures Public Company Limited
Listed REITs/Trusts
• Frasers Hospitality Asset Management
Pte Ltd, Manager of Frasers Hospitality
Real Estate Investment Trust
• Frasers Hospitality Trust Management
Pte Ltd, Manager of Frasers Hospitality
Business Trust
• Frasers Logistics & Industrial Asset
Management Pte Ltd, Manager of
Frasers Logistics & Industrial Trust
Others
• Beer Thip Brewery (1991) Co., Ltd.
• Blairmhor Distillers Limited
• Blairmhor Limited
• Frasers Property Australia Pty Limited
• InterBev (Singapore) Limited
• International Beverage Holdings (China)
Limited
• International Beverage Holdings Limited
• International Beverage Holdings (UK)
Limited
• Sura Bangyikhan Group of Companies
P12_Board of Directors.indd 18
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Group
Management
PANOTE SIRIVADHANABHAKDI
Group Chief Executive Officer
Frasers Property Limited
CHIA KHONG SHOONG
Group Chief Corporate Officer
Frasers Property Limited
Annual Report 2019 19
Since Panote’s appointment as Group
CEO in 2016, the Group has grown
significantly in scale, with total assets
increasing from $24.2 billion as at
30 September 2016 to $37.6 billion
as at 30 September 2019. He also
led the company through a strategic
rebranding initiative in the last year,
from Frasers Centrepoint Limited to
Frasers Property Limited, reflecting
the growth and scale of its real estate
business. Under his leadership, FPL
has reaffirmed its commitment to
delivering enriching and memorable
experiences to customers and
stakeholders. This drives the Group
to leverage its knowledge and
capabilities across its markets to
deliver value in its multiple asset
classes.
Panote is leading the development
of One Bangkok, a joint venture
between FPL and TCC Assets Co.
Ltd., with a total investment value of
about US$3.5 billion. The
16.7-hectare development in central
Bangkok is the largest private
sector property development ever
undertaken in Thailand. Panote was
recently named Thailand Real Estate
Personality of the Year 2018 by
PropertyGuru.
Prior to his leadership at FPL,
Panote was the Senior Executive Vice
President of Strategic Planning at TCC
Holding Company, where he oversaw
the strategy for TCC Group’s property
development.
Panote received a Master of
Science from the London School
of Economics and Political Science,
UK and a Bachelor of Science in
Manufacturing Engineering from
Boston University, and a Certificate in
Industrial Engineering and Economics
from Massachusetts University, USA.
As Group Chief Corporate Officer,
Khong Shoong looks after Group
Corporate Secretariat and Legal,
Sustainability and Corporate
Administration. He oversees the
development and formulation of
Group strategies to streamline
business processes, drive synergies
and improve profitability. He also
assists Frasers Property’s Group
Chief Executive Officer in overseeing
the evaluation, execution and
implementation of group-wide
projects and strategy initiatives
as well as the development of the
Group’s international businesses.
Khong Shoong chairs the Finance
Committees of Frasers Property
Australia, Frasers Property UK and
Frasers Property Industrial.
Khong Shoong was previously the
Group Chief Financial Officer of FPL
and its Chief Executive Officer for
Australia, New Zealand and the
United Kingdom. Prior to joining the
Group on 2 March 2009, he held
positions as Director, Investment
Banking and Global Banking at The
Hongkong & Shanghai Banking
Corporation Ltd and Vice President,
Global Investment Banking, Citigroup /
Salomon Smith Barney / Schroders.
Khong Shoong holds a Master of
Philosophy (Management Studies)
from Cambridge University,
United Kingdom and a Bachelor of
Commerce (Accounting and Finance)
from the University of Western
Australia, Australia.
P19_Management.indd 19
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20 Frasers Property Limited
Group Management
Choo Leong graduated with a
Master of Business Administration
(Distinction) from University of
Strathclyde, United Kingdom. He
is a Fellow of the Association of
Chartered Certified Accountants,
United Kingdom, a member of the
Institute of Singapore Chartered
Accountants, a member of the
Singapore Institute of Directors and a
member of the Malaysian Institute of
Accountants.
Choo Leong has Group responsibility
over the Finance, Accounting,
Treasury, Taxation, Risk Management
and Investor Relations functions.
He collaborates with the senior
management team on the Group’s
strategic initiatives, and develops and
drives the framework for effective
capital management.
Prior to joining FPL in March 2017,
Choo Leong held various senior
positions including Chief Financial
Officer of Pacific Radiance Limited
and Group Head of Global Shared
Services and Head of Regional
Finance Office of the Sime Darby
Group.
LOO CHOO LEONG
Group Chief Financial Officer
Frasers Property Limited
UTEN LOHACHITPITAKS
Group Chief Investment Officer
Frasers Property Limited
Uten graduated with a Master of
Business Administration and Bachelor
of Business Administration from
Assumption University, Thailand.
Uten is responsible for the Frasers
Property Group’s investment, capital
markets transactions, managing and
monitoring the Group’s portfolio
of assets, devising strategies for
acquisitions/divestments and liaising
with investment partners. He also
provides leadership for the Indochina
markets, namely Thailand and
Vietnam.
Prior to joining the Group on
1 October 2013, Uten held various
positions including Managing
Director, Strategic Advisory at DBS
Bank Ltd, Director, Investment
Banking Division, United Overseas
Bank (Thai) Public Company Limited
and Senior Vice President, Corporate
& Investment Banking Group, DBS
Bank Ltd.
P19_Management.indd 20
12/12/19 5:12 PM
Annual Report 2019 21
Sebastian has global responsibilities
for all aspects of the Group’s Human
Resources.
He joined FPL in 2015, bringing
with him extensive human resource
experience spanning industry
sectors such as investment, banking,
financial services, technology,
manufacturing and life sciences,
at the operations level, board
level, as well as shareholder level.
Prior to joining FPL, Sebastian was
the Group Chief Human Resource
Officer at Surbana Corporation,
and before that, Advisory Director
& Managing Director at Temasek
Holdings (Private) Limited. Sebastian
was also the Regional Human
Resources Director with American
Express International Inc. covering
15 countries in the Asia Pacific and
South Asia. He has also served blue
chip companies such as Hewlett
Packard and Seagate Technology in
various capacities.
Sebastian has been teaching as an
adjunct faculty in the Lee Kong Chian
School of Business of the Singapore
Management University (SMU)
since 2006. He teaches at both the
undergraduate and graduate levels,
covering modules in Human Capital
Management, Talent Management,
Legal Environment & Employment
Relations, Personnel Selection and
Leadership & Team Building. He also
taught Strategic Human Resource
Management in the SMU-SID
(Singapore Institute of Directors)
programme. He served two terms as
an external examiner for Ngee Ann
Polytechnic in Singapore.
Sebastian currently serves as the
Programme Director of the SMU HR
Graduate Certification Programme
under the SMU Academy. He also
served on the Professional Practices
Committee of the Institute for Human
Resource Professionals Limited,
a human resources certification
body initiated by the Ministry of
Manpower.
Sebastian holds a Master of Business
Administration (Human Resources)
and Bachelor of Science (Human
Resources) from Northern Illinois
University, USA.
Wanshi holds a double degree from
the University of Pennsylvania, USA
where she graduated summa cum
laude from the Wharton School with
a Bachelor of Science in Economics
and a Concentration in Finance,
and from the College of Arts and
Sciences with a Bachelor of Arts in
Economics. She serves as a Member
of the Investment Committee at
The National Kidney Foundation
Singapore, which is a non-profit
health organisation in Singapore.
Wanshi is responsible for the
development and integration of
Frasers Property Group strategy and
its execution across the company’s
diverse businesses and markets
it operates in, while working in
collaboration with the senior
leadership team. In her role, Wanshi
also oversees the Capital Allocation,
Planning, Research, Strategic
Communications and Branding, and
Strategic Innovation functions.
Prior to joining the Group on
8 February 2018, Wanshi held
positions including Head of Investment
Management at CapitaLand Limited,
Director (Multi-asset Class Research)
at Mount Kellett Capital (Hong Kong)
Limited, and Vice President (Distressed
Products Group/ Strategic Investment
Group) at Deutsche Bank AG.
SEBASTIAN TAN
Group Chief Human Resources
Officer
Frasers Property Limited
ZHENG WANSHI
Group Chief Strategy &
Planning Officer
Frasers Property Limited
P19_Management.indd 21
11/12/19 9:04 AM
22 Frasers Property Limited
Group Management
also spent 19 years holding various
roles at General Electric (GE) and GE
Capital, including CIO of GE Oil &
Gas Asia Pacific, CIO of GE Corporate
ASEAN, CIO of GE Money UAE, and
was stationed in various locations
including Japan, UAE and USA.
Samuel holds a Bachelor of
Engineering with Honours from the
Nanyang Technological University
in Singapore.
Chris graduated with a Master
of Business Administration and a
Bachelor of Science from National
University of Singapore.
Samuel is responsible for the
development and execution of
Frasers Property Group’s digital vision
and strategy. In his role, Samuel leads
the Group’s digital transformation
journey from future-proofing the
business to enabling future of
work using technology. Samuel
is also responsible for identifying
innovation opportunities and
building new digital business models
in collaboration with the senior
leadership team.
Prior to joining the Group on
2 September 2019, Samuel held
various digital leadership positions,
including Chief Information Officer
(CIO) for Asia Pacific at Janssen
Pharmaceutical and Chief Digital
Officer at SP Group. Samuel has
Chris is responsible for Frasers
Property Singapore. He oversees
the Group’s residential, retail and
commercial business in Singapore as
well as Frasers Centrepoint Trust and
Frasers Commercial Trust.
Since Chris joined the Group on
1 April 2001, he has held several
appointments including Chief
Executive Officer, Commercial and
Greater China, Chief Executive
Officer, Frasers Centrepoint Asset
Management Ltd and General
Manager, Strategic Planning and
Asset Management.
SAMUEL TAN
Group Chief Digital Officer
Frasers Property Limited
CHRISTOPHER TANG
Chief Executive Officer
Frasers Property Singapore
P19_Management.indd 22
12/12/19 5:13 PM
Annual Report 2019 23
Corporation, Victoria and General
Manager (Property) of Australian
Defence Industries Ltd.
He is a member of Property Male
Champions of Change which was
established by the Property Council
of Australia and, until August 2019,
was Chairman of the Green Building
Council of Australia.
Rod holds a Bachelor of Applied
Science and a Graduate Diploma in
Sports Administration from La Trobe
University, Australia, a Graduate
Diploma in Urban & Regional
Planning from RMIT University,
Australia. He also graduated from the
Advanced Management Program by
The Wharton School, University of
Pennsylvania, USA.
Teck Chuan graduated with a Master
of Business Administration and a
Bachelor of Engineering (Civil) from
the National University of Singapore.
Rod is responsible for Frasers
Property Australia. He oversees the
Group’s residential, commercial,
industrial and retail business in
Australia as well as Frasers Logistics
& Industrial Trust. He has 35 years
of experience in the property
development industry, primarily
involved in large-scale urban
development and urban renewal
schemes.
Rod joined the Group on
22 March 2010. He was Executive
General Manager, Residential at
Australand before it was acquired
by Frasers Property in 2014. He was
subsequently appointed CEO of the
Australian business. Prior to joining
Frasers Property Australia, Rod held
a number of positions including
Managing Director and CEO of Lend
Lease Primelife Ltd, CEO of Delfin
Lend Lease Ltd, Executive General
Manager (Vic) of Delfin Group Ltd,
Chief Operating Officer of Urban Land
Teck Chuan is responsible for Frasers
Hospitality. He oversees the Frasers
Property Group’s hospitality business
from investment and business
development, to global expansion of
its chain of gold-standard serviced
residences and hotels worldwide.
He joined the Group on 19 February
2019. His experience includes
positions as CEO at MCL Land, Chief
Financial Officer at MCL Land, as
well as Finance Director at Cycle &
Carriage Industries.
RODNEY VAUGHAN FEHRING
Chief Executive Officer
Frasers Property Australia
KOH TECK CHUAN
Chief Executive Officer
Frasers Hospitality
Reini is responsible for Frasers
Property Industrial. He oversees
the Group’s logistics and industrial
operations in Australia and Europe,
and Frasers Logistics & Industrial
Asset Management Pte. Ltd., the
manager of Singapore-listed Frasers
Logistics & Industrial Trust.
Industrial and Investment Property
division, he was responsible for the
strategic direction and leadership of
all Australian industrial development
and investment property operations
in Australia. In addition, Reini was
a member of the Frasers Property
Europe Investment Committee.
Reini joined the Group’s Australian
operations in 1998 and has held
senior leadership positions within
the Commercial & Industrial business
in Australia for over 15 years. In his
previous role with Frasers Property
Australia as Executive General
Manager of its Commercial &
Reini holds a Bachelor of Science
(Architecture) and Bachelor of
Architecture from the University
of Sydney. He is also a graduate
from the Advanced Management
Programme at INSEAD Business
School, Europe.
REINI OTTER
Chief Executive Officer
Frasers Property Industrial
(Appointed on 1 October 2019)
P19_Management.indd 23
12/12/19 5:13 PM
Charoen Sirivadhanabhakdi
Chairman
P24_Chairman's Statement.indd 24
10/12/19 2:35 PM
Annual Report 2019 25
Chairman’s
Statement
“
... not only is the Group’s portfolio more
diversified and resilient today, but its key
platforms have been further developed.
These efforts will put the Group in good
stead to deliver long-term value to
shareholders.
”
Over the past five years, Frasers Property Limited (FPL, and
together with its subsidiaries, the Group) has evolved into
a multi-national integrated real estate group. Since FPL’s
re-listing on the Main Board of the Singapore Exchange
Securities Trading Limited in January 2014, FPL’s leadership
team has made significant strides year after year to build
on the valuable legacy of the Group to strengthen our
business. As a result of the team’s work, not only is the
Group’s portfolio more diversified and resilient today, but its
key platforms have been further developed. These efforts
will put the Group in good stead to deliver long-term value
to shareholders.
Enhanced Key Platforms
Concerted efforts have been placed on further building the
Group’s platforms in the recent years. Identifying the right
areas to focus on and developing strong management teams
with the appropriate capabilities, local knowledge and
network to grow the Group’s businesses in those areas, have
been key priorities of FPL’s leadership team. This is critically
important as I firmly believe real estate is a people business.
The Group creates places for people and adds value to
communities, so people must be at the heart of business.
I am pleased to share that, with the work put in over the last
three years, the Group’s key platforms have been enhanced
– focused sector platforms in industrial and logistics,
hospitality, and retail in Singapore, as well as scaled and
diversified country platforms in Singapore, Australia and
Thailand. The demand and supply dynamics may differ
across the platforms, but each will tap into the Group’s
shared legacy and experience to generate value over time.
P24_Chairman's Statement.indd 25
10/12/19 2:35 PM
26 Frasers Property Limited
26 Frasers Property Limited
Improved Quality of Earnings
A key factor in the selection of focus
areas is the importance of recurring
income to the Group. FPL creates and
adds value through its development
capabilities, but development income
is inherently lumpy due to the cyclical
nature of the sector. FPL’s leadership
team has been growing the Group’s
base of recurring income assets
and diversifying geographically to
provide a measure of stability to the
Group’s earnings. The quality of FPL’s
earnings has improved signifi cantly
over the past fi ve years, but we must
be cognisant of the fact that the
Group’s earnings will be exposed
to the ups and downs of lumpy
development income.
In FY19, the Group delivered
attributable profi t before fair value
change and exceptional items
(APBFE) of $350.1 million on the back
of $3.8 billion of revenue. Historically,
FPL has maintained a 50% to 60%
pay-out ratio based on APBFE before
adjusting for distributions
to perpetual securities holders.
In view of the Group’s performance
and historical pay-out ratio, the
Board has proposed a fi nal dividend
of 3.6 cents per share. Including
FPL’s interim dividend of 2.4 cents
per share, proposed total dividend
for FY19 is 6.0 cents per share,
representing a pay-out ratio of
approximately 50%.
Frasers Tower • Singapore
Staying Resilient in A Volatile
Environment
Macro and fi nancial conditions
have weakened in the past year as
growing geo-political uncertainties
aff ected global growth as well as
business and consumer sentiments.
Adding to the challenging
business environment are evolving
demographics and technological
advancements that are resulting in
rapidly changing consumer trends.
Despite these continued headwinds,
I am confi dent the work the FPL
leadership team has been doing will
enable the Group to navigate the
fi eld with local expertise.
As the Group dynamically innovates
to keep ahead in a rapidly changing
world, in keeping with its unifying
belief that experience matters, FPL’s
leadership team must continue to
put people fi rst. The team will need
to keep paying the utmost attention
to what truly matters to the Group’s
customers and carry on leveraging
the collective talents of its people to
remain relevant to its customers.
Heightened Focus on Collaborations
A collaborative mindset is vital to
the Group to enable every part of
the business to take advantage of
its combined experience and scope
to grow. This has been refl ected in
the way FPL’s leadership team has
strengthened its platforms, including
its real estate investment trusts,
which play an integral role in the
Group’s capital management strategy.
This collaborative mindset extends
beyond the Group to the broader real
estate ecosystem. Over the years, the
Group has been involved in numerous
joint ventures for development
projects and just last year, the Group
embarked on partnerships in the
co-working and data centre sectors.
P24_Chairman's Statement.indd 26
13/12/19 3:49 PM
Annual Report 2019 27
“
We are building an enduring business; hence
sustainability is a natural focus area for the
Group. The Group has been making consistent
progress in maintaining a high standard of
corporate governance and raising the bar in
sustainable practices in our business operations...
”
Acknowledgements
FPL will not be where it is today
without the support of its many
stakeholders. To FPL’s leadership
team and the Group’s employees,
I would like to express my utmost
appreciation for your dedication
and hard work. To my esteemed
colleagues on the Board, thank
you for the wise counsel and
valuable guidance.
I also extend my sincere gratitude,
to the Group’s customers, business
partners, bankers, financial
advisers and shareholders, for
their unwavering support of FPL.
On behalf of FPL’s Board, I thank
the Boards of Frasers Centrepoint
Trust, Frasers Commercial Trust,
Frasers Hospitality Trust, FLT, Frasers
Property Thailand, Frasers Property
Thailand Industrial Freehold &
Leasehold REIT, Golden Land Property
Development and Golden Ventures
Leasehold Real Estate Investment
Trust, for their stewardship of the
Group’s listed entities.
Charoen Sirivadhanabhakdi
Chairman
In FY19, FPL’s leadership team
stepped up its capital partnership
initiatives with third-party investors
and brought in a long-term capital
partner for Frasers Tower in
Singapore.
of the company while rewarding
high performance. The Board will
continue to provide guidance to the
FPL leadership team as they work
to ensure these values form the
backbone of the Group’s culture.
Continued Emphasis on
Sustainability
We are building an enduring business;
hence sustainability is a natural focus
area for the Group. The Group has
been making consistent progress
in maintaining a high standard of
corporate governance and raising
the bar in sustainable practices in
its business operations, and FPL’s
progress is reported in this year’s
Sustainability Report. This year’s
Sustainability Report, as with every
year prior, was prepared in accordance
to international standards and is an
important part of the Group’s efforts
to share its sustainability approach
with stakeholders.
Over the course of the year, the
Group received accolades for its
commitment towards building a
sustainable business. The Group was
recognised for its outstanding efforts
in adhering to exemplary corporate
governance practices in the 2019
Singapore Corporate Awards. The
Group’s business in Australia and
Frasers Logistics & Industrial Trust
(FLT) also did very well in several
significant global rankings in the
2019 Global Real Estate Sustainability
Benchmark (GRESB) assessment.
Real estate is a capital intensive
business. As part of the Group’s focus
on building resilience in a changing
and competitive environment, FPL’s
leadership team must continue to
seek collaboration opportunities that
will facilitate greater value creation
through the coming together
of resources.
On-going Development of the
Group’s Human Capital
People are integral to the Group’s
growth and continuously developing
its talent pool is of paramount
importance to FPL’s continued
success. Over the course of the year,
the Board was involved in several FPL
leadership appointments. The Board
takes a keen interest in ensuring
the right balance between external
recruits and the development of
internal succession planning. Koh
Teck Chuan joined as CEO, Frasers
Hospitality and Samuel Tan joined
FPL as Group Chief Digital Officer.
Through the formation of Frasers
Property Industrial and Frasers
Property Retail, Reini Otter and Low
Chee Wah were promoted as the
respective CEOs.
Given the increasingly competitive
and globalised business environment,
it is imperative the Group is equipping
its employees with the necessary
skills and expertise to navigate
through complexity. Equally central
to ensuring long-term delivery
against the strategy is developing a
culture which builds on the values
P24_Chairman's Statement.indd 27
12/12/19 5:16 PM
28 Frasers Property Limited
In Conversation with
the Group CEO
“
Our growth is in line with our focus on
building scalable business platforms across
asset classes and geographies to enhance
portfolio resilience and build an enduring
business.
”
How would you characterise the financial
performance of Frasers Property Limited (FPL, and
together with its subsidiaries, the Group) in FY19?
Having a business model that delivers value over the
long-term and through industry cycles has always
been the guiding principle for FPL’s leadership team.
The company has continued to evolve in response
to changing market conditions and in anticipation of
shifting trends.
Over the past five years, the company’s evolution went
into high gear amidst elevated volatility and global
uncertainties across industries. We are not the same
company we were five years ago. When FPL was re-listed
in 2014, the Group’s total assets was $15.8 billion.
As at the end of FY19, the Group’s total assets reached
$37.6 billion. Our growth is in line with our focus on
building scalable business platforms across asset classes
and geographies to enhance portfolio resilience and build
an enduring business. This would not have been possible
without our people. It is the power of our people, the
unifying belief to create experiences that matter to our
customers, which have helped us deliver our results.
FY19 was a year of considerable progress in areas of
strategic importance. The efforts we have put in over the
past three years to build scalable platforms culminated
in the formation of a multi-national integrated industrial
and logistics platform and a scaled multi-sector Thailand
country platform this year. We believe these platforms will
enable us to harness the strength of the Group to deliver
greater network effect. On top of that, we cemented our
position as one of the largest retail players in Singapore
with the Group’s investment of approximately $1.4 billion
in PGIM Real Estate AsiaRetail Fund (PGIM ARF).
P28_Conversation of CEO.indd 28
10/12/19 2:50 PM
Panote Sirivadhanabhakdi,
Group Chief Executive Officer
P28_Conversation of CEO.indd 29
16/12/19 4:07 PM
30 Frasers Property Limited
In Conversation with the Group CEO
“
Many of our industrial and logistics customers are
global and a multi-national, integrated and sector-
focused platform will allow us to better support our
customers’ growing business aspirations.
”
As a Group, we adopt a rigorous and
disciplined approach towards our
capital and portfolio management,
while keeping a close eye on our
earnings profi le. We work hard to
optimise returns from our large
base of investment properties and
that has provided a good level of
stability to our earnings, with profi t
before interest and taxation (PBIT)
from recurring income sources in
FY19 up 16% year-on-year. Without
this enlarged base of recurring
income, we would have been further
exposed to the inherent lumpiness
of development income, as seen in
the 43% year-on-year decline in PBIT
from development income in FY19.
As a result, in FY19 on the overall,
we recorded PBIT of $1.3 billion and
attributable profi t of $560 million, a
decrease of 3% and 25% respectively
from FY18.
We are proud of our many award-
winning development projects. Our
development capabilities remain
a prized value-creation skillset
to the Group as we maintain our
pursuit of opportunities to create,
enhance and unlock asset value.
We will continue to calibrate our
exposure to development projects
and investment properties depending
on macro and real estate markets
fundamentals.
The performance of the Group’s
Australia business refl ects the
eff ects of the cooling Australia
residential market. How will
the Group manage through this
challenging residential market in
Australia?
The residential market in Australia
has been aff ected by a combination
of factors. Following a prolonged
period of housing boom, macro
prudential controls were introduced
and there was a greater focus on
responsible lending practices. As a
result, availability of bank fi nancing
for both local and foreign buyers
was reduced and the deposit gap
has widened. The resulting higher
borrowing costs, more diffi cult
fi nancing conditions and additional
surcharges imposed on foreign
purchasers has led to foreign
investors withdrawing from the
market. Meanwhile, there is limited
ability for Australian households
to push residential prices higher
as wage growth remains low and
the household sector in Australia
is generally highly levered. On the
cost front, the higher volume of
construction activity in the market
due to the housing boom resulted
in higher construction and delivery
costs, particularly in Australia’s two
largest housing markets – Sydney
and Melbourne.
Frasers Property Australia (FPA) has a
legacy of over 90 years in the market.
We have always adopted a prudent
approach when we undertake
feasibility studies and do not rely on
price growth to deliver the margins
inherent in the feasibilities of our
residential projects. The larger
impact from a cooling market is a
reduction in sales volumes, which
does not necessarily impact the
project margin, but does alter the
timing of profi t recognition. Our
fi nancial performance refl ects a delay
in stage releases in a few projects
across New South Wales and Victoria.
We believe the longer-term positive
drivers for the Australian residential
market remain intact. Ground
sentiment has improved following
the Australian federal election,
which removed uncertainty over
negative gearing restrictions and
subsequent changes to local lending
regulations. In addition, data related
to unemployment, population
growth and job creation all point to a
favourable outlook. During the year,
we took advantage of risk-managed
opportunities to add to our land bank
in Australia. A good example is our
acquisition of The Grove in Victoria,
an existing development with no
further planning risk, an established
project brand and a known market for
the products being developed. This
means The Grove will start delivering
earnings pretty much from the get-go.
We will maintain our prudent,
through-the-cycle approach towards
managing our residential portfolio.
The residential market in Australia
is deep and mature, and we are
confi dent in local capabilities to
continue bringing relevant products
and services to the market.
P28_Conversation of CEO.indd 30
10/12/19 2:50 PM
FDM facility, Eastern Creek Business Park, New South Wales • Australia
On the topic of Australia, the
industrial and logistics part
of the business will be part of
Frasers Property Industrial (FPI),
which will begin reporting as a
separate strategic business unit
from FY20. The Group’s business
in Thailand has also undergone
a transformation over the course
of FY19 and was rebranded as
Frasers Property Thailand (FPT).
What is the motivation behind
the development of these
platforms?
The formation of FPI and FPT is part
of our larger emphasis on building
platforms with appropriate scale and
focus. Building scalable platforms led
by strong management teams with
market and sector expertise and
networks will enable us to harness
the strength of the Group to identify
and take advantage of opportunities
when they arise and to hold steady
when conditions are challenging.
More importantly, having the right
platforms in place will enable us to
better serve our customers as our
businesses are positioned to be close
to the ground and able to respond
nimbly to evolving customer needs.
We believe these are critical success
factors for real estate that will give us
a sustained competitive advantage.
On the back of favourable demand-
supply dynamics in Australia and
Europe and e-commerce models
driving supply chain reconfi guration,
we have been delivering $300-
500 million of completed industrial
and logistics facilities annually on
average. The strong results we have
achieved in this business since we
entered this sector in 2014 through
the acquisition of our Australian
platform refl ects our capabilities
and the favourable underlying
fundamentals of this sector.
Over the past fi ve years, our industrial
and logistics business in Australia
and Europe has grown rapidly
from $1.6 billion to $5.2 billion.
And even larger, if we factor in
the Southeast Asia industrial and
logistics business, managed by FPT.
This puts us in a very good position,
to have this unique presence and
a credible reputation across three
major regions. Our growth to date
has been driven by a combination of
asset creation and entrepreneurial
acquisitions in this core asset class.
We believe we can do more with the
established platform to meet the
needs of our customers.
Many of our industrial and logistics
customers are global, and a multi-
national, integrated and sector-
focused platform will allow us
to better support our customers’
growing business aspirations.
Leveraging the combined scale,
broad insights and collective
experience of our teams in Australia
and Europe, we can create more
value for our customers and our
Group. With the formation of FPI,
P28_Conversation of CEO.indd 31
19/12/19 11:04 AM
32 Frasers Property Limited
In Conversation with the Group CEO
“
With a bigger network of customer touchpoints and
greater flexibility to optimise the use of our land banks
and properties in Thailand, we will be able to offer our
customers an enhanced value proposition.
we are building upon our multi-
national industrial and logistics
capabilities to drive the growth of
this asset class for the long term.
Over in Thailand, we first entered the
Thailand market in a meaningful way
through the acquisition of about 40%
in Golden Land Property Development
Public Company Limited (GOLD), a
residential and mixed-use developer
and owner in FY16. From that
first entry, we expanded into the
industrial and logistics segment via
the acquisition of a stake in TICON
Industrial Public Company Limited
(TICON), a leader in the industrial and
logistics sector in Thailand. We took
subsequent steps to increase our
stake in TICON while working with
the Board and management of the
company to strengthen the business.
In FY19, TICON was rebranded
to Frasers Property Thailand
and successfully completed its
”
voluntary tender offer for GOLD. This
acquisition is an important milestone
in our journey in Thailand as two real
estate developers come together
to become a leading integrated real
estate platform in Thailand. This now
gives FPT a balanced and diversified
portfolio spanning the industrial and
logistics, residential, commercial and
hospitality sectors, along with higher
earnings and return on equity.
The combination of FPT and
GOLD gives us added competitive
advantage. With a bigger network of
customer touchpoints and greater
flexibility to optimise the use of
our land banks and properties in
Thailand, we will be able to offer
our customers an enhanced value
proposition.
Integrated and Focused Industrial and Logistics Platform
The Netherlands
Germany
Austria
4 countries
$5.21
billion
AUM2
6.6-yr
WALE5
9-yr
average age
~$300-500
million
GDV6 of facilities
delivered
annually
133
properties
3.3 million
sqm GFA3
99%
occupancy4
1.1 million
sqm
development
pipeline and
land bank
Australia
Comprises industrial and logistics property assets (outside Thailand) in which the Group has an interest, including assets held by FLT
1
2 Assets under management
3 Gross floor area
4
5
6 Gross development value
By net lettable area (NLA)
By income
P28_Conversation of CEO.indd 32
16/12/19 10:19 AM
Annual Report 2019 33
The Group made a signifi cant
investment in PGIM ARF in FY19
and announced the formation
of a Singapore retail-focused
business. What is the thinking
behind this push towards retail
in Singapore, when this is one
sector that is seeing signifi cant
disruption from e-commerce?
Singapore off ers a unique
environment for the retail sector.
From a macro perspective, Singapore
has a high urban density that
supports denser retail coverage, yet
the retail space gross fl oor area per
capita is 30% lower than it is in Hong
Kong1. From a lifestyle perspective,
consumers in Singapore value
proximity-based retail experiences,
and expect retailers and service
providers to be located where they
live, work and play and everywhere
in-between on their daily commute.
PGIM ARF is the largest privately
held suburban retail mall portfolio
in Singapore. Suburban retail space
is limited in supply in Singapore.
This investment gives us strategic
exposure to a retail portfolio that is
well located with great connectivity
to transportation nodes and large
residential catchments. These are
defensive characteristics, which
feature prominently in our portfolio
of retail malls in Singapore, so we are
in familiar territory.
Combining the malls held by FPL,
Frasers Centrepoint Trust (FCT)
and PGIM ARF, we have a portfolio
of 142 malls spread across the
north, northeast, east and central
Singapore. More importantly, we
hold market leading positions in the
north, northeast and east regions of
Singapore. According to an August
2019 report by Cistri, an urban
development consultancy, these
regions have retail fl oor space per
capita below the national average of
about six square feet of retail fl oor
space per capita, which bode well for
the organic growth potential of
these malls.
Scaled and Focused Singapore Retail Platform
Woodlands
Causeway Point
Yew Tee
Yew Tee Point
Yishun
Northpoint City
(North Wing and
South Wing)
Punggol
Waterway Point
Hougang
Hougang Mall
Pasir Ris
White Sands
Tampines
Century Square and
Tampines 1
Bedok
Bedok Point
Expo
Changi City Point
Queenstown
Anchorpoint
Somerset
The Centrepoint
Tiong Bahru Plaza
Tiong Bahru
Mall fl oor space (per square foot) per
capita 20233
Outer North & Outer North-East
2.0 – 3.0
Outer West & Outer East
4.0 – 5.0
Central West & Central East
6.0 – 7.0
Central Core
> 7.0
Frasers Property Group Malls
PGIM ARF Malls
MRT Stations
1
2
3
Source: CEIC, RHB
Comprises retail property assets in Singapore in which the Group has an interest, including PGIM ARF’s retail assets in Singapore and assets held by FCT
(excluding Eastpoint Mall, Valley Point Shopping Centre, Robertson Walk and Central Plaza)
Source: Cistri, 21 August 2019
P28_Conversation of CEO.indd 33
16/12/19 11:00 AM
34 Frasers Property Limited
Fraser Suites Hamburg • Germany
With assets under management
(AUM) of approximately $8.6 billion,
our retail business in Singapore has
certainly grown over the years. To
build upon the meaningful scale
of our retail network, in October
2019 we announced the formation
of Frasers Property Retail, a retail-
focused business unit in Singapore.
The formation of Frasers Property
Retail will enable us to focus
and dedicate more resources to
strengthen our retail footprint in
Singapore. We want to be more
responsive and agile in the fast-
evolving retail landscape so that
we can better serve our tenants
and shoppers.
On this front, there will be greater
focus on how we build our expertise
in this space. We have been keenly
studying the evolving shopper needs
and technology advancements
impacting the retail environment,
which is informing how we are
shaping our retail strategy in the long
run. Our focus is on how we can best
deliver the right customer experience
to cater to shoppers, while
supporting our tenants’ businesses.
Retail innovation will be a key focus
area as we seek to stay ahead of
trends. We will continue to explore
and integrate digital innovations
into our business to create more
meaningful experiences for our
customers, even as we introduce
more experiential and lifestyle
concepts to our malls to ensure we
are anticipating the future of malls.
The hospitality sector is
generally more sensitive to
global events. What strategies
have been put in place by the
new leadership in the Group’s
hospitality business to address
market challenges?
Over the last two decades, Frasers
Hospitality (FH) has been aff ected
by geo-political uncertainties,
terrorism and economic downturns
at diff erent points in time. We have
equally benefi ted from buoyant
global economies, particularly
from the growing middle class,
and a signifi cant growth in leisure
travel following the introduction of
low-cost carriers. Through the ups
and downs, we have built a strong
portfolio of hospitality brands and
a wide network across our focus
markets of Europe and Asia. If there
is a lesson learnt over the past two
decades, it is that we must keep
evolving to remain relevant as the
pace of change across sectors will
only pick up.
Over the last several months, FH
has embarked on initiatives to
consolidate operational effi ciencies,
and I am excited about the progress
FH has been making.
In mapping FH’s growth strategy,
a framework for the creation and
deepening of the role of clusters
was established to allow for better
optimisation of resources and
accountability. This is in line with
the overall Group focus of building
solid platforms led by strong
management teams with local and
sector knowledge and networks.
With this new scope in place, cluster
management will be better placed
to respond and adapt to changes
within their respective clusters. The
strategic and disciplined management
and procurement of management
contracts for third-party owners
will be a key responsibility for each
cluster lead.
Like retail, the hospitality business
is as much about eff ective portfolio
management as it is about having
the right expertise to best deliver
the right customer experience.
On the operational front, a review
of operational effi ciencies across
multiple platforms was conducted,
including a thorough review of our
hospitality brands to ascertain gaps
and opportunities to enhance brand
equity and loyalty in anticipation of
the evolving needs of our customers.
Concurrently, the on-going roll-out of
our customised revenue management
system to facilitate better yield
management across all properties
will continue to be driven both at
corporate and cluster levels.
Our hospitality business is a key part
of our multi-national presence and
multi-sector capabilities. Leveraging
FH’s established brand portfolio and
network, we remain committed to
strengthening of the business.
Across the Group’s multi-national,
multi-sector business, what
would you say is an important
diff erentiating advantage for FPL
that you will continue to build
upon?
We know our business is not built
around just brick and mortar. It’s built
around a homeowner, a shopper, a
retailer, an employee, an entrepreneur
or an enterprise. By knowing our
customers better and understanding
P28_Conversation of CEO.indd 34
10/12/19 2:51 PM
Burwood Brickworks set to become the world’s most sustainable
shopping centre
Located in Melbourne, Australia, Burwood Brickworks aims to be
the fi rst retail development in the world to achieve Living Building
Challenge™ certifi cation, which is the most advanced measure of
sustainability in the built environment globally. A Living Building
has a net-zero carbon footprint, produces more electricity than it
consumes, grows agriculture on 20% of the site and is net water and
waste positive amongst other social and health benefi ts including
access to natural daylight and indoor air quality, and constructed
from non-toxic and recycled materials.
An urban farm on the rooftop of Burwood Brickworks will feature
a café, external planting grounds and productive greenhouse to
provide a place for residents and visitors alike to learn more about
the importance of urban farming and enjoy the benefi ts of enjoying
fresh seasonal produce. A mix of an on-site rooftop solar photovoltaic
system and off -site renewable energy, utilising the latest in battery
storage, will generate 105% of the energy required for the building.
Opened on 6 December 2019, Burwood Brickworks shopping centre
has already received a world-leading 6 Star Green Star Design Review
rating. The hyper-sustainable shopping centre will be the heart of
the mixed-use community that is certifi ed with a 6 Star Green Star
Communities rating.
Burwood Brickworks is constructed from non-toxic and recycled materials
Melbourne, Victoria • Australia
their needs more comprehensively, we
are in a better position to bring Frasers
Property to our customers and deliver
real value for their needs.
In line with our focus on building
a resilient business, we aim for
leadership in sustainability as a
diff erentiating advantage in our
business and strive to create a lasting
and sustainable impact on our
customers and the communities in
which we operate.
Over the course of the year, we
received several awards that
recognised the Group’s commitment
towards corporate governance,
environmental sustainability and
corporate social responsibility.
At the prestigious annual Singapore
Corporate Awards, which seek to
recognise exemplary corporate
governance practices of listed
companies in Singapore, the Group
clinched two awards. FPL received
a Bronze for Best Managed Board in
the Large-Cap category, and Frasers
Hospitality Trust (FHT) received a
Bronze for Best Investor Relations in
the Real Estate Investment Trust (REIT)
and Business Trust category.
Marking seven years of year-on-year
improvement, our 2019 GRESB results
were again exceptional. FPA was
crowned Overall Global Sector Leader
for Developers, ranking fi rst among
41 developers. FPA was also named
Global Sector Leader and Overall
Regional Sector Leader in Asia-Pacifi c
for the Diversifi ed - Offi ce/Industrial
category. Frasers Logistics & Industrial
Trust (FLT) was named Global Sector
Leader, Overall Regional Sector Leader
in Asia-Pacifi c, and Regional Sector
Leader in Australia for the Industrial/
Distribution Warehouse category. This
is the second consecutive year FLT has
been named Global Sector Leader in
the industrial property space.
GRESB is the leading Environmental,
Social and Governance benchmark
for real estate and infrastructure
investments across the world. We are
proud of the results FPA and FLT have
achieved and we are seeking to extend
the same quality to other parts of the
Group that are at diff erent stages in
the journey.
P28_Conversation of CEO.indd 35
10/12/19 2:51 PM
Artist’s impression of Havi facility (Bangplee 2), Bangplee, Samut Prakan • Thailand
Sustainability needs to become
deeply rooted in our DNA and
integrated across our business. This
includes our capital management
and fi nancing. In the past 18 months,
we had fi ve successful green loan
issuances across the Group. Tapping
the green loan market is a natural
extension of our sustainability focus
and an integral part of our capital
management strategy as we actively
diversify our base of funding.
Our Group is a key participant in the
fast-evolving green loan market in
the region because we have been
quick to recognise the support from
fi nancial institutions for green loans
on the back of the introduction of
the Green Loan Principles by the Asia
Pacifi c Loan Market Association. We
built on the momentum of our well-
received fi rst green loan that was
secured in September 2018 for the
refi nancing of Frasers Tower and in
FY19, secured four more green loans
over a fi ve-month period. To date,
as a Group, we have fi nanced over
$3 billion in green loans. We received
very strong demand for our green
loans, which were all over-subscribed
by the banks. In fact, the corporate
green loan in Australia and the
syndicated green loan for Alexandra
Point and 51 Cuppage Road have
favourable pricing adjustments
from the second year onwards if
the requisite green standards are
maintained.
What about other aspects of
capital management? What is
your area of focus?
We believe the work we have been
doing to enhance the resilience of
our portfolio will stand us in good
stead to weather uncertainties and
disruptions. We pay close attention
to our capital structure, which is a
key aspect of business resilience.
We continued to carry out active
capital management, divesting some
assets over the course of FY19 – our
50% stake in an offi ce property in
Melbourne and three retail assets
at Central Park in Sydney. Another
key focus area of active capital
management this year is capital
partnerships. This takes the form of
internal and external partnerships.
The Group’s REITs have an integral
role in our capital management
strategy. As the Group’s REITs
leverage the support of FPL to grow,
FPL grows its AUM and fee income as
well. This virtuous cycle of growth
and value creation for the entire
Group remain a strong feature in
FY19. In total, FLT, FCT and Frasers
Property Thailand Industrial Freehold
& Leasehold REIT (FTREIT) acquired
around $875 million of sponsor
assets over the course of the year.
In addition to growing with our
REITs, we have stepped up our
capital partnership initiatives with
third-party investors. In Singapore,
we brought in a long-term capital
partner for Frasers Tower. The
equity injection by the long-term
strategic investor in Frasers Tower
raised $442.7 million for FPL, with
both partners now holding a 50%
stake each in the property. We are
happy to partner with the long-term
investor to enhance the value of
Frasers Tower, a strategic investment
property within the Group’s portfolio.
In Thailand, we entered into joint
ventures with Mitsui Fudosan
and Sahathai Terminal to develop
and manage warehouses and
logistics facilities in Thailand. These
collaborations enable the joint-
venture partners to tap each other’s
networks, resources and expertise to
deliver projects that create value for
both parties.
As we consider the possibilities and
challenges thrown up by this volatile
and uncertain environment, we must
carry on building sustainable scale
and our platforms to enhance our
business resilience and maintain
our relevance to our customers. To
achieve this, we will actively pursue
collaboration opportunities across
the Group and with our partners.
P28_Conversation of CEO.indd 36
10/12/19 2:51 PM
Annual Report 2019 37
“
... we will actively pursue collaboration opportunities
across the Group and with our partners.
”
fi nancing costs and provided some
support to household and business
demand. However, we are mindful
of the weaker underlying macro
and fi nancial conditions that have
triggered monetary stimulus. It
expected that the global GDP growth
outlook is weaker in 2020 and in the
longer term.
Much of the work we have been
doing over the past fi ve years has
been about enhancing the resilience
of our portfolio and our business
so that we can continue to deliver
returns to our shareholders through
cycles and over the long term. The
Thailand platform we have built is a
great example. ASEAN is projected
by the International Monetary Fund
and World Bank to be the fastest
growing region in the world over the
next fi ve years1. Taken as a single
entity, ASEAN represents the world’s
third largest market with around
630 million people. With our Thailand
platform in place, we are in a better
position to capture opportunities in
this growth region, as well as from
the dislocation of global supply
chains from China to Thailand and
Vietnam. However, there is still a lot
of work to be done.
Changing consumer trends,
technological advancement and the
increasing emphasis on sustainability
are mutually amplifying their
eff ects on our business. Notably, the
undeniable trend of digitalisation.
However, digital transformation is
more than just about technology.
It means innovation that connects
technology, data science, design
and business strategy to change
a business process or customer
experience. It means putting the
customer at the centre of real change
in how we engage, create, build and
connect the physical world to the
digital world – all of which will help
future-proof our organisation. To
this end, we are thoughtfully putting
resource in place to support this
development. I am pleased to share
we have recently appointed the
Group’s Chief Digital Offi cer.
The real estate industry is rapidly
evolving. That means we must fi nd
ways to deliver the best experiences
to our customers. We must adopt a
progressive mindset and be proactive
in keeping up with these trends,
not only in our strategy, but also
taking them into consideration in our
investments and operations.
I am pleased we are bringing Design
Thinking to the Group as part of
eff orts to further foster a culture
of innovation. Design Thinking is
fundamentally about customer-
centricity and building the Group’s
innovation capability to generate real
estate solutions that remain relevant
for the future.
It might sound like we are stating
the obvious – but focusing on
delivering the best possible customer
experience and ensuring we have the
right leadership in place will be key
to building an enduring business for
our shareholders. We will not only
focus on what we deliver, but on
how we deliver the experience. This
includes optimising and simplifying
end-to-end business processes
and delivering business outcomes
more quickly. And of course, we will
continue to empower our people, so
they have the skills to adapt, develop
and succeed. Work still needs to be
done to ensure we are consistently
delivering experiences that matter
to our customers, but we are moving
along well on our journey.
Built-to-suit warehouse, Samut
Sakhon • Thailand
The world is facing signifi cant
geo-political uncertainties
and every day, there are
technological advancements
that threaten to disrupt
businesses. What does the future
look like to you, and how is the
Group positioned in this future?
The US-China trade war has led
to a slow-down in global growth
and higher business uncertainty.
In addition, there are structural
headwinds such as ageing
populations, growing geo-political
uncertainties and disruptions.
Central banks around the world are
cutting interest rates and providing
additional liquidity that have lowered
1 ASEAN’s average GDP growth is 5.4% last fi ve years, and is projected to grow around at similar rate for the next fi ve years
P28_Conversation of CEO.indd 37
10/12/19 2:51 PM
38 Frasers Property Limited
Business
Review
SINGAPORE
Consolidating Our
Industry Position
FY19
Revenue for
Singapore Business
$687.0
million
FY19
PBIT
$465.6
million
Frasers Tower • Singapore
P38_BR Singapore.indd 38
10/12/19 2:38 PM
Annual Report 2019 39
This has been an exciting year for Frasers
Property Singapore as we continued to build
greater resilience in our business through our
initiatives and strategic acquisitions.
FY19 was both challenging and rewarding for Frasers
Property Singapore (FPS). Despite the prevailing
industry headwinds, our Residential and Retail &
Commercial Divisions – as well as the two Singapore
Exchange Securities Trading Limited (SGX-ST)-
listed real estate investment trusts (REITs), Frasers
Centrepoint Trust (FCT) and Frasers Commercial Trust
(FCOT) – were able to deliver on key milestones and
results.
For the year in review, FPS delivered a revenue of
$687.0 million and profi t before interest and tax (PBIT)
of $465.6 million in FY19. Our revenue was 49.4%
lower than last year, due primarily to lower profi t
recognition from our residential properties as fewer
residential units were completed and sold in FY19.
Our recurring PBIT grew year-on-year by 49.1% as we
consolidated 4QFY19 fi nancials for PGIM Real Estate
AsiaRetail Fund Limited1 (PGIM ARF) into our results.
Excluding PGIM ARF, our recurring PBIT increased by
11.1% year-on-year as we continued to build and
grow our recurring income base.
Christopher Tang Kok Kai, CEO, Frasers Property Singapore
Tampines 1 • Singapore
1
PGIM Real Estate AsiaRetail Fund Limited owns and manages fi ve retail malls (Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1)
and an offi ce property (Central Plaza) in Singapore, and two retail malls in Malaysia. On 1 October 2019, due to redemption of shares in the capital of PGIM
ARF, the Group’s stakes in PGIM ARF held by FPL and FCT increased to 87.9%
P38_BR Singapore.indd 39
10/12/19 2:38 PM
In July 2019, we launched Rivière, an
iconic development by the Singapore
River comprising 455 units of luxury
residences and 821 units of serviced
apartments. The project received
positive response from prospective
buyers, with a total of 372 units sold
as at 30 September 2019, out of the
initial launch of 60 units. We also
completed North Park Residences
this year and sold 90.5% of Seaside
Residences, which is on schedule for
completion in the second half of 2020.
Residential
Our Residential Division recorded
a revenue of $117.4 million and a
PBIT loss of $17.4 million in FY19,
compared to revenue of
$879.0 million and PBIT of
$149.6 million the year before.
The decline was largely due to the
lumpy nature of the residential profit
profile. The FY18 results had included
a one-off profit recognition following
the completion of Parc Life Executive
Condominium (EC), coupled with
a higher level of progressive profit
recognition from North Park
Residences. In FY19, however, we
recorded a lower level of progressive
profit recognition from Seaside
Residences, Parc Life EC, North Park
Residences and Rivière.
Singapore - Residential Projects Completed or Under Development
Effective
interest
as at
30 Sep 19
(%)
No. of
units
% Sold
as at
30 Sep 192
%
Completion
as at
30 Sep 19
Ave
selling
prices
as at
30 Sep 19
($ sqm)
Est.
saleable
area
(‘000 sqm)
Land cost
($ psm)
Target
completion
date
Project
Parc Life (EC)
North Park Residences
Seaside Residences
Rivière
80.0
100.0
40.0
100.0
628
920
843
4553
100.0
100.0
90.5
8.1
100.0
100.0
74.6
10.7
8,590
14,208
18,815
31,345
62.1
68.6
67.6
46.9
3,444
Completed
6,458
Completed
9,236
2H 2020
18,6494
2H 2022
Based on planning submission. Subject to approval
Based on sales and purchase agreements signed and excludes options issued as at 30 September 2019
1
2
3 Excluded the 82 serviced apartment units
4 Land cost is based on permissible GFA
5
Release of 3rd Quarter 2019 Real Estate Statistics by the Urban Redevelopment Authority on 25 October 2019
P38_BR Singapore.indd 40
10/12/19 2:38 PM
The residential market has undergone
a period of consolidation after
July 2018 when additional cooling
measures were introduced by the
Singapore government. A year after
these measures were implemented,
prices displayed resilience with
modest growth for two consecutive
quarters from the second quarter of
2019 after two preceding quarters
of decline. Based on the Urban
Redevelopment Authority’s “3rd
Quarter 2019 Real Estate Statistics”5,
the private residential price index
increased quarter-on-quarter by
1.3% and 1.5% in third quarter of
2019 and second quarter of 2019
respectively. However, headwinds
remain due to the diffi cult economic
conditions arising from the US-China
trade war and the signifi cant supply
of units in the launch pipeline. On
the back of new launches, demand
remained robust as developers
sold 7,469 new private residential
property units (excluding ECs) in
the fi rst three quarters of 2019,
about 500 units more than the last
corresponding period. The sales
volume for 2019 is expected to
surpass the 8,795 new private home
units sold in 2018.
Artist’s impression of Rivière • Singapore
1
1
Based on S&P signed and excludes options issued as at 30 September 19
Based on S&P signed and excludes options issued as at 30 September 19
P38_BR Singapore.indd 41
10/12/19 2:38 PM
42 Frasers Property Limited
Retail & Commercial
Our Retail & Commercial Division,
including FCT and FCOT, delivered
a good set of results. Revenue
increased by 20.6% year-on-year to
$557.7 million, and PBIT registered an
increase of 49.1% to $450.2 million
over last year.
During the year, we completed a few
key transactions. FPL and FCT bought
investment stakes in PGIM ARF, and
FCT acquired a 40.0% equity stake
in Waterway Point. In addition, an
external strategic partner subscribed
to new share units in Frasers Tower.
The investment in PGIM ARF was part
of our strategy to signifi cantly build
on our dominant suburban retail mall
market position and to broaden our
base of recurring income sources.
With our combined investment
stake of 87.9%1 in PGIM ARF, FPS will
explore opportunities with FCT for
collaboration across both portfolios
to improve the overall mall off erings
and the experience of our enlarged
customer base.
FCT acquired 33.3% and 6.7%
stakes in Waterway Point from FPS
and Sekisui House in July 2019
and September 2019 respectively.
These acquisitions were aligned to
FCT’s strategy to scale up its market
presence in Singapore’s suburban
retail sector and to benefi t from
the growing population and future
developments in the surrounding
Punggol region.
Waterway Point • Singapore
Our team continued to undertake
active asset and property
management of Frasers Tower. With
our strategic partner taking up a
50.0% stake in the development,
we will continue to grow our
recurring fee income stream while
retaining the network eff ect of our
commercial portfolio.
Our retail and commercial
investment properties continue to
trade well with our retail properties
enjoying close to 94.0%2 occupancy
and our commercial properties with a
93.2%3 occupancy commitment. This
was due to the fi lling up of transient
vacancies at Frasers Tower and the
securing of lease commitments at
Alexandra Technopark.
1 On 1 October 2019, due to redemption of shares in the capital of PGIM ARF, the Group’s stakes in PGIM ARF held by FPL and FCT increased to 87.9%
2
Refer to FPL’s full-year results announcement dated 15 November 2019. Portfolio metrics based on assets under management, excluding assets held by
PGIM ARF
Portfolio metrics based on assets under management in Singapore, excluding assets held by PGIM ARF. Committed occupancies for China Square Central,
Alexandra Technopark and Frasers Tower were used. FPL’s full-year results announcement dated 15 November 2019 referred to the physical occupancies of
the assets
3
P38_BR Singapore.indd 42
10/12/19 2:38 PM
Annual Report 2019 43
Alexandra Technopark • Singapore
Asset Enhancements
The transformation of Alexandra
Technopark into a contemporary
business campus was fully completed
in January 2019, boosting the
property’s market positioning
and long-term income potential
signifi cantly. The property witnessed
robust leasing volumes from January
to September 2019, with more than
45,000 sqm of new and renewal
leases concluded within the period.
We enhanced the quality and
diversity of the tenant base at
the property with the addition of
many well-established local and
international fi rms from a wide array
of sectors. Come the fi rst quarter of
20201, Google Asia Pacifi c will be
joining our tenant mix, committing
to around 32,000 sqm of space for
an initial lease term of fi ve years. The
committed occupancy rate for the
property rose signifi cantly to 96.8%
as at 30 September 2019, from 70.2%
in the preceding 12 months.
Another signifi cant milestone
was achieved in 4QFY19 with the
completion of asset enhancement
works for the retail podium at
18 Cross Street in China Square
Central. The retail podium, which
progressively recommenced
operations from November 2019,
was repositioned with a vibrant
mix of food and beverage, health
and wellness, lifestyle and services
off erings, as well as improved
shoppers’ amenities. The income
potential of the retail podium
will be enhanced with an increased
net lettable area of about
7,400 sqm from 5,600 sqm before.
The retail component of China Square
Central, including the retail podium,
also benefi tted from an increase
in the customer base and footfall
from the opening of the 304-room
Capri by Fraser, China Square hotel2,
which began operations within the
development in May 2019. By the
fi rst quarter of 2020, all businesses
at the retail podium of China Square
Central will have commenced
operations.
During the year, we commenced asset
enhancement works at the basement
level of Causeway Point to facilitate
the connection with the underground
pedestrian link between Causeway
Point and the adjacent new offi ce
building, Woods Square. This initaitive
is expected to cost $15.0 million and is
projected to generate a positive return
on investment.
1
2
Refer to FCOT’s announcement dated 25 June 2019 for further information
The hotel is owned by an entity of Frasers Property Limited (refer to FCOT’s Circular to Unitholders dated 3 June 2015 for details)
P38_BR Singapore.indd 43
10/12/19 2:39 PM
44 Frasers Property Limited
Business Review • Singapore
Singapore – Retail & Commercial Properties
Properties
Singapore - REIT (FCT)
Anchorpoint
Bedok Point
Causeway Point
Changi City Point
Northpoint City North Wing1
YewTee Point
Waterway Point2
Singapore - Non-REIT retail
Northpoint City South Wing
The Centrepoint
Robertson Walk
Valley Point (Retail)
Total Retail
Singapore - REIT (FCOT)
China Square Central
Alexandra Technopark
Australia and the United Kingdom - REIT (FCOT)
Australia, Canberra - Caroline Chisholm Centre
Australia, Perth - Central Park3
Australia, Melbourne - 357 Collins Street
Farnborough Business Park, Farnborough, UK3
Singapore - Non-REIT office/business park
51 Cuppage Road
Alexandra Point
Frasers Tower
Valley Point Office Tower
Total Commercial
Effective
interest
as at
30 Sep 19
(%)
Book value
as at
30 Sep 19
($’m)
Net
lettable
area
(‘000 sqm)
Occupancy
FY19 (%)
FY18 (%)
36.4
36.4
36.4
36.4
36.4
36.4
14.6
113.5
94.0
1,298.0
342.0
809.5
189.0
1,300.04
100.0
100.0
100.0
100.0
1,050.0
671.0
138.0
58.0
6.6
7.7
39.0
19.0
21.3
6.8
34.5
27.0
33.1
8.9
4.0
79.0
95.7
97.0
95.9
99.0
97.1
98.0
93.1
90.4
74.9
88.5
88.8
79.2
98.4
93.8
96.5
94.3
99.7
87.5
92.3
80.7
89.2
6,063.0
207.9
25.7
25.7
25.7
12.9
25.7
12.9
100.0
100.0
50.0
100.0
648.0
606.05
228.0
289.0
305.3
150.6
416.0
278.0
1,965.0
289.0
5,174.9
36.2
95.9
40.2
66.2
32.0
50.9
25.3
18.6
63.8
17.0
446.1
89.96,7
96.87
94.49,10
70.29
100.0
100.0
83.07
99.77
97.48
89.3
96.6
97.97
63.6
70.0
95.0
98.1
89.3
99.2
85.89
59.3
Total Retail & Commercial
11,237.9
654.0
Note:
•
1
2
3
4
5
6
7
8
9
10 Excludes 18 Cross Street retail podium (NLA approximately 5,900 sqm) which was closed for asset enhancement then
The net lettable area for all properties is based on 100% effective interest
Includes Yishun Retail podium
Refers to FCT's 40.0% indirect interest in the property
Refers to FCOT's 50.0% indirect interest in the property
Refers to Waterway Point valuation as at 1 April 2019, which is excluded from FCT's portfolio as it is held as investment in joint venture
Book value as reported by FCOT. The Group adjusted the book value to reflect its freehold interest in the property
Includes 18 Cross Street retail podium (NLA approximately 7,400 sqm)
Committed occupancy as at 30 September 2019
Inclusive of a new lease concluded in October 2019, the committed occupancy would be 99.1%
Committed occupancy as at 30 September 2018
P38_BR Singapore.indd 44
10/12/19 2:39 PM
Northpoint City • Singapore
Real Estate Investment Trusts (REITs)
Frasers Centrepoint Trust (FCT)
was included in the FTSE EPRA/
NAREIT1 Global Real Estate Index
Series (Global Developed Index) on
23 September 2019, a signifi cant
milestone in its growth journey.
This follows the completion of two
signifi cant acquisitions amounting
to approximately $910 million, for
a 24.8%2 stake in PGIM ARF and a
40% equity stake in Waterway Point.
FCT raised $437.3 million in gross
proceeds via an equity fund-raising
exercise to partially fi nance these
two acquisitions. The exercise was
very well supported by investors.
FCT delivered another strong year
of performance for FY19. It achieved
new records for gross revenue, net
property income and distributable
income, driving the distribution per
unit (DPU) and net asset value (NAV)
per unit to new heights.
FCT declared total distributions to
unitholders of $119.6 million for
FY19. DPU for FY19 was 12.07 cents,
up 0.5% year-on-year, and NAV was
up 6.25% to $2.21 per unit. Gross
revenue for FY19 grew 1.6% year-
on-year to $196.4 million, and net
property income (NPI) for the year
increased by 1.5% to $139.3 million,
on the back of steady performance
from the properties in FCT’s portfolio.
Overall portfolio occupancy,
including Waterway Point, improved
to 96.5% from 94.7% a year ago,
and average rental reversion of the
portfolio was 4.8% in FY19, compared
with 3.2% in FY18. FCT’s focus on
necessity shopping, healthy portfolio
occupancy and steady shopper traffi c
helped to underpin the stability and
resilience of its performance. With a
gearing of 32.9%3 as at 30 September
2019, it is fi nancially strong and well
positioned to continue to tap growth
opportunities as they arise.
1
FTSE EPRA/NAREIT Global Real Estate Index Series is an international real estate investment index developed by FTSE Group in cooperation with the
European Public Real Estate Association (EPRA) and the National Association of Real Estate Investment Trusts (NAREIT). The index series is designed to track
the performance of listed real estate companies and REITs worldwide and is seen as the leading benchmark for listed real estate investments.
2 On 1 October 2019, due to redemption of shares in the capital of PGIM ARF, FCT’s stakes in PGIM ARF increased to 24.8%
3 In accordance with Property Funds Appendix, the gearing ratio included FCT’s proportionate share of deposited property value and borrowings in a joint
venture
P38_BR Singapore.indd 45
10/12/19 2:39 PM
46 Frasers Property Limited
Frasers Commercial Trust (FCOT)
continued its eff orts to strengthen
and reshape its portfolio for long-term
growth in FY19, with the completion
of two major asset enhancements in
Singapore, at Alexandra Technopark
and the retail podium of China Square
Central. In addition, an upgrading
project to the lobby and forecourt
areas of Central Park in Perth
commenced in April 2019.
FCOT declared total distributions
to unitholders of $86.9 million for
FY19, 5.0% above that of FY18. This
translated to a full-year DPU of 9.60
cents, which was stable compared to
FY18. FY19’s gross revenue was 6.2%
lower year-on-year at $125.1 million,
mainly due to comparatively lower
occupancy at Alexandra Technopark,
the divestment of 55 Market Street
on 31 August 2018 and the eff ects of
the average weaker Australian dollar.
NPI for FY19 was 7.4% lower year-
on-year at $82.7 million, mainly due
to the lower gross revenue, higher
property tax expense for Alexandra
Technopark and the higher quantum
of lease incentives amortisation
attributable to leases at Central Park
and 357 Collins Street.
The foregoing NPI did not account
for contributions from the 50.0%
interest in Farnborough Business Park
in the UK, which was held as a joint
venture and was equity-accounted.
The attributable gross revenue and
NPI for Farnborough Business Park in
FY19 were $13.7¹ million and
$10.21 million, respectively. Including
the attributable NPI of Farnborough
Business Park, FCOT’s portfolio NPI
for FY19 would be $92.9 million.
The portfolio average committed
occupancy rate as at 30 September
2019 was 95.0%, an 11.6 percentage-
point improvement from 83.4% a
year ago. Occupancy rates for the
Singapore portfolio, the Australia
portfolio and Farnborough Business
Central Park, Perth • Australia
Park as at 30 September 2019
were 94.9%2, 94.5%2 and 97.4%3 ,
respectively. Th e Singapore portfolio,
in particular, saw a signifi cant uplift
in committed occupancy by 19.2
percentage-points from a year ago.
This was mainly attributable to the
sizeable increase in the committed
occupancy rate at Alexandra
Technopark. The Australia portfolio
recorded an increase in committed
occupancy by 5.5 percentage-points
from a year ago, mainly due to new
lease commitments at Central Park
and 357 Collins Street.
FCOT’s gearing as at 30 September
2019 was 28.6%, one of the lowest
among Singapore REITs currently.
The healthy level of gearing, which
is well below the regulatory limit
of 45%, provides a high degree of
fi nancial fl exibility to pursue growth
initiatives and capitalise on market
opportunities, as well as to buff er
against unforeseen market risks.
1
2
3
Figures include reimbursements of lease incentives and rent guarantee for certain unlet units and other commercial arrangements performed by the vendor
in accordance with the terms of the acquisition (refer to FCOT’s announcement dated 14 December 2017 for details)
Committed occupancy as at 30 September 2019
Inclusive of a new lease concluded in October 2019, the committed occupancy would be 99.1%
P38_BR Singapore.indd 46
10/12/19 2:39 PM
Annual Report 2019 47
Technology Initiatives
Over the year in review, we launched
several initiatives to harness the
latest in technology in order to
deepen our innovation capabilities
and to make our business processes
more effi cient. This strategic
approach is necessary as we
continually improve our ability to
understand our customers in order to
deliver better experiences for them.
We partnered with the Infocomm
Media Development Authority (IMDA)
on their Call for Innovative Solutions
for Smart Estates, where Alexandra
Technopark was designated as a
commercial development testbed
for Singapore-based technology
companies to encourage building
developers and facility managers
to collaborate, develop and trial
innovative solutions in mixed-
developments.
Through a partnership with Certis
Cisco, we plan to adopt a digitalised
solution for security manpower
and surveillance integration across
a number of our existing assets. In
addition to optimising our resources
for greater operational effi ciency, the
solution enables us to forestall and
respond to security threats in real time.
On the consumer front, we are
embarking on the next phase of
our Go-Digital programme. We
have expanded the services of our
digital food and beverage concierge
service, Makan Master, to include
a dine-in feature. On top of making
reservations, members can skip the
queue to easily order takeaways or
dine-in and pay in a single fl ow using
the Frasers Experience app, providing
them with greater convenience and
time-savings.
Frasers Tower was recognised for its
commitment to safety, garnering the BCA
Design and Engineering Safety Excellence
Award 2019. It was also one of the
fi nalists for the Urban Land Institute Asia
Pacifi c Awards for Excellence 2019, which
recognises superior development
eff orts across the region.
Through partnerships with mobile
payment platforms – such as
GrabPay, Alipay and WeChat –
the newly formed FrasersPay
Platform will allow our members
to transact for their purchases
easily and earn Frasers Points and
rewards automatically. Members
can now scan for Frasers Points,
use their digital gift cards and
make payment in a single fl ow at
participating merchant stores across
our properties. The pilot for the
FrasersPay Platform was rolled out at
Northpoint City in September 2019.
Industry Recognition
Our eff orts to focus on enhancing
customer experiences and
sustainability were recognised during
the year.
Rivière was awarded the BCA
Green Mark Award (GoldPLUS) for
its sustainability eff orts, while
Waterway Point and Watertown
were feted at the FIABCI Singapore
Property Awards 2019, winning
in the Mixed-Use Development
Category, Residential (Mid-Rise)
Category and Retail Category.
On the retail front, we were awarded
the Best Retail Event of the Year
for our “A Beary Merry Christmas”
campaign and the Best Eff orts in CSR
for our “It Pays to Play” campaign at
the Singapore Retailers Association
Retail Awards 2019.
“A Beary Merry Christmas” also
clinched the Gold Award in the
Integrated Digital Campaigns
category at the International Council
of Shopping Centres Asia Pacifi c
Awards 2019, for successfully driving
shopper engagement through the use
of digital gamifi cation.
At the 6th Annual Best of Breeds
REIT Awards 2019 held in September
2019, FCT clinched the Platinum
award for Retail REIT (greater than
US$1 billion market capitalisation)
The awards honour companies and
managers with the highest standards
and performance in the Asia Pacifi c
REITs sector, based on attributes
including fi nancial performance,
market performance, corporate
governance, quality of the portfolio
and the REIT manager, as well as risk
management policies.
Frasers Experience app
Frasers Tower • Singapore
Photo by A Kannan
P38_BR Singapore.indd 47
12/12/19 5:23 PM
48 Frasers Property Limited
Business
Review
AUSTRALIA
Keeping Up the
Momentum
FY19
Revenue for
Australia Business
$1.5
billion
FY19
PBIT
$280.6
million
FDM facility, Eastern Creek Business Park, New South Wales • Australia
P48_BR Australia.indd 48
12/12/19 5:24 PM
Annual Report 2019 49
Rod Fehring, CEO, Frasers Property Australia
Frasers Property Australia continued to maintain
a rigorous and disciplined approach in capital and
portfolio management, strengthening our land bank and
our earnings profi le.
Frasers Property Australia (FPA) is the Group’s diversifi ed
property platform in Australia with a presence in the country’s
major markets operating across the residential, industrial,
commercial and retail sectors. In FY19, FPA achieved A$1.6
billion ($1.5 billion) of revenue and a PBIT of A$293.1 million
($280.6 million). As at 30 September 2019, we had 17,790
residential development units in the pipeline, a strong
commercial, industrial and retail development pipeline, and
a A$5.0 billion ($4.6 billion) investment property portfolio
under management.
Of greater importance is our ability to create successful,
sustainable and connected communities, which improve
the social, economic and urban fabric of the country.
Internally, we believe in building a fl exible, humanistic
culture that continues to reward our business and our
people, underpinning our leadership in customer service and
sustainability. We plan to bring both progressive thinking
and powerful partnerships to our ambitious commitment,
announced in March 2019, to achieve net zero carbon in
development and operations for all our new properties
by 2028.
P48_BR Australia.indd 49
10/12/19 2:43 PM
50 Frasers Property Limited
Residential Property
The year was characterised by a
softer residential market, with
declines in median property prices in
Sydney and Melbourne and reduced
demand, including from foreign
investors. However, sentiment
improved following the Australian
federal election, which removed
uncertainty over negative gearing,
and subsequent changes to local
lending regulations. In addition, two
interest rate cuts saw both enquiries
and sales improving. The long-
term positive drivers for Australian
residential property remain in place:
strong employment growth and low
unemployment, sustained population
growth and low interest rates.
Values on the east coast appeared
to be stabilising with Sydney,
Melbourne and Brisbane all recording
modest price gains in the last months
of FY19. For Sydney and Melbourne,
these were the fi rst positive price
movements since the market peaked
in late 2017. The Perth market, our
most challenging market, remains
subdued.
FPA released over 980 units for sale
in FY19 and sold 1,014 units. We
completed and settled 1,675 units
and reported A$1.1 billion
($1.0 billion) in unrecognised
revenue, as at 30 September 2019.
FY19 was notable for the successful
completion and sell-out of
several long-running mixed-use
communities and the acquisition of
two new land estates. In December
2018, FPA acquired The Grove, a
partly developed master-planned
community in Melbourne’s western
suburbs, for A$202.5 million
($193.9 million) under deferred
payment terms. Our sales,
community development and
delivery teams stepped in seamlessly,
planning for the 167-hectare site
to yield 1,775 residential lots for
completion in 2025.
Coorparoo Square, Queensland • Australia
Construction of the infrastructure,
housing and retail components
commenced at Burwood Brickworks,
in Melbourne’s middle ring. As at 30
September 2019, all but six of the
430 properties released to the market
were sold, despite a general softening
in the market. The community’s
innovative hyper-sustainable
shopping centre is scheduled to open
before Christmas 2019.
The year saw the completion of
Wonderland, the fi nal apartment
building at the landmark Central Park
mixed-use community in Sydney.
Central Park added another eight
awards to its collection, amassing
58 local and international awards
to date. Discovery Point delivered
and settled the last of its 1,972
apartments, concluding a 12-year
development journey. In Queensland,
the Coorparoo Square mixed-use
precinct also sold out.
Achieving excellence in the customer
experience continued to drive
research, refl ection and innovation.
Our Net Promoter Score, a customer
loyalty and satisfaction measure,
reached 29 this year, improving on
our score of 25 in 2018. This approach
sets a high bar against which we now
measure ourselves on an ongoing
basis. We commenced a major new
initiative in FY19, looking at potential
improvements and new opportunities
in design, delivery, marketing, sales
and customer care.
At the close of FY19, we had a
secured residential development
pipeline of 17,790 units, representing
a gross development value (GDV) of
A$8.6 billion ($8.0 billion). In total,
2,000 units are scheduled for release
in FY20, and 1,950 units are expected
to reach completion and settlement.
P48_BR Australia.indd 50
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Annual Report 2019 51
Annual Report 2019 51
Australia – Residential/Mixed-Use Projects Completed or Under Development
Site1
Botany (Tailor's Walk, Building D) -
H/MD, NSW
Botany (Tailor's Walk, Building B) -
H/MD, NSW
Chippendale (Central Park,
Wonderland) - HD, NSW
Ryde (Putney Hill, Housing) - H/MD, NSW
Carlton (Found) - H/MD, VIC
Parkville (Parkside Parkville, Prosper) -
HD, VIC
Hamilton (Hamilton Reach, Atria
North) - H/MD, QLD
Hamilton (Hamilton Reach, Newport) -
H/MD, QLD
Hamilton (Hamilton Reach, Riverlight
East) - H/MD, QLD
Kangaroo Point (Yungaba House/
Other) - HD, QLD
Cockburn Central (Cockburn Living,
Kingston Stage 4) - H/MD, WA
Cockburn Central (Cockburn Living,
Kingston Retail) - H/MD, WA
Cockburn Central (Cockburn Living,
Vicinity Stage 1) - H/MD, WA
East Perth (Queens Riverside, Lily) -
HD, WA
East Perth (Queens Riverside, QII) -
HD, WA
East Perth (Queens Riverside, QIII) -
HD, WA
Chippendale (Central Park) - Retail, NSW
Ryde (Putney Hill Stage 2, Absolute) -
H/MD, NSW
Warriewood - L3, NSW
Greenvale (Greenvale Gardens) - L3, VIC
Westmeadows (Valley Park) - H/MD, VIC
Edmondson Park (Ed Square, Belmont
Apartments) - HD, NSW
Edmondson Park (Ed Square, The
Easton Apartments) - HD, NSW
Edmondson Park (Ed Square, The
Emerson Apartments) - HD, NSW
Edmondson Park (Ed Square,
The Lincoln) - HD, NSW
Burwood East (Burwood Brickworks,
South Garden Apt) - HD, VIC
Burwood East (Burwood Brickworks,
West Garden Apt) - HD, VIC
Hope Island (Cova) - H/MD, QLD
Shell Cove (Aqua) - HD, NSW
Burwood East (Burwood Brickworks,
East Garden Apt) - HD, VIC
Effective
Interest
as at
30 Sep 19
(%)
Est. total
no. of
units2
% Sold
as at
30 Sep 19
Ave. selling
price
as at
30 Sep 19
($’m)
Est.
saleable
area
(‘000 sqm)
Total
GDV
($’m)
Target
Competion
Date
PDA
PDA
100.0
100.0
65.0
50.0
100.0
100.0
173
185
295
1
69
172
82
35
100.0
155
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
PDA
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
14
60
8
96
125
107
267
6
22
1
627
210
99
69
91
50
58
79
499
53
98.8
96.8
99.3
100.0
94.2
91.9
98.8
97.1
76.1
100.0
98.3
75.0
93.8
31.2
84.1
97.4
16.7
100.0
100.0
99.7
92.9
87.9
55.1
19.8
90.0
100.0
100.0
88.2
84.9
100.0
60
100.0
0.8
0.8
1.1
2.2
0.6
0.5
0.6
1.2
0.5
2.0
0.4
0.5
0.4
0.6
0.6
0.7
1.2
2.6
7.9
0.2
0.4
0.5
0.5
0.6
0.5
0.5
0.5
0.4
0.9
0.5
14.6
143.4 Completed
14.1
147.2 Completed
19.6
311.5 Completed
0.6
4.7
2.2 Completed
39.6 Completed
10.8
86.8 Completed
6.9
4.4
48.4 Completed
41.1 Completed
11.0
82.7 Completed
4.2
5.6
0.7
7.9
28.6 Completed
26.5 Completed
4.0 Completed
39.6 Completed
10.7
75.5 Completed
8.5
60.6 Completed
22.1
1.7
178.6 Completed
7.3
1Q FY20
15.0
57.3
1Q FY20
NA
NA
NA
8.8
6.0
8.2
4.6
3.2
4.6
NA
5.1
3.8
7.9
1Q FY20
155.6
1Q FY20
90.3
4Q FY20
53.4
1Q FY21
36.6
1Q FY21
51.4
1Q FY21
27.5
1Q FY21
26.5
1Q FY21
37.6
1Q FY21
197.9
1Q FY21
46.5
2Q FY21
29.7
2Q FY21
Notes:
•
1
2
3
Profit is recognised on completion basis. All references to units include apartments, houses and land lots
L – Land, H/MD – Housing / medium density, HD – High density
Includes 100% of joint arrangements (Joint operation - JO and Joint venture - JV) and project development agreements (PDAs)
There are a number of land lots; profit is recognised when land lots are sold. Target completion date is the target date for the sale of the last land lot
P48_BR Australia.indd 51
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52 Frasers Property Limited
Business Review • Australia
Burwood Brickworks, Melbourne, Victoria • Australia
Australia – Residential/Mixed-Use Projects Completed or Under Development (Cont’d)
Site1
Burwood East (Burwood Brickworks,
Plaza Garden Apt) - HD, VIC
Hamilton (Hamilton Reach, Riverlight
North) - H/MD, QLD
Point Cook (Life, Point Cook) - L3, VIC
Carlton (Encompass) - H/MD, VIC
Burwood East (Burwood Brickworks) -
H/MD, VIC
Blacktown (Fairwater) - H/MD, NSW
Lidcombe (The Gallery) - H/MD, NSW
Tarneit (The Grove) - L3, VIC
Bahrs Scrub (Brookhaven) - L3, QLD
Clyde North (Berwick Waters) - L3, VIC
Wyndham Vale (Mambourin) - L3, VIC
Edmondson Park (Ed Square) -
H/MD, NSW
Shell Cove (The Waterfront) - L3, NSW
Baldivis (Baldivis Grove) - L3, WA
Baldivis (Baldivis Parks) - L3, WA
Wallan (Wallara Waters) - L3, VIC
North Coogee (Port Coogee) - L3, WA
Mandurah (Frasers Landing) - L3, WA
Eff ective
Interest
as at
30 Sep 19
(%)
Est. total
no. of
units2
% Sold
as at
30 Sep 19
Ave. selling
price
as at
30 Sep 19
($’m)
Est.
saleable
area
(‘000 sqm)
100.0
100.0
50.0
65.0
100.0
100.0
100.0
50.0
100.0
PDA
100.0
100.0
PDA
100.0
50.0
50.0
100.0
100.0
71
85
546
115
268
807
231
1,775
1,757
1,990
1,197
893
3,139
368
1,028
2,040
632
625
94.4
47.1
93.6
6.1
59.3
75.1
88.7
28.9
26.5
55.5
19.5
15.8
71.8
23.6
26.4
29.8
14.6
28.8
0.6
0.5
0.4
0.6
1.1
0.7
0.7
0.3
0.2
0.3
0.3
0.7
0.4
0.2
0.2
0.2
0.8
0.2
4.7
6.0
NA
7.5
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Total
GDV
($’m)
Target
Competion
Date
39.1
2Q FY21
44.6
2Q FY21
201.7
4Q FY21
64.9
3Q FY22
282.8
578.3
150.2
551.2
368.9
676.0
338.7
643.7
1,164.6
64.5
163.9
425.8
482.8
97.5
1Q FY23
2Q FY23
2Q FY23
3Q FY25
4Q FY25
2026
2026
2027
2027
2029
2031
2033
2033
2037
Notes:
•
1
2
3
Profi t is recognised on completion basis. All references to units include apartments, houses and land lots
L – Land, H/MD – Housing/medium density, HD – High density
Includes 100% of joint arrangements (Joint operation - JO and Joint venture - JV) and project development agreements (PDAs)
There are a number of land lots; profi t is recognised when land lots are sold. Target completion date is the target date for the sale of the last land lot
P48_BR Australia.indd 52
12/12/19 5:24 PM
Business Review • Australia
Discovery Point, New South Wales • Australia
P48_BR Australia.indd 53
10/12/19 2:43 PM
54 Frasers Property Limited
Business Review • Australia
Australia – Residential/Mixed Use Land Bank
Site1
Macquarie Park - HD, NSW
Hardy's Road - L, VIC
Deebing Heights - L, QLD
Edmondson Park (Ed Square) - HD, NSW
Keperra - H/MD, QLD
Parkville (Parkside Parkville) - H/MD, VIC
Cockburn Central (Cockburn Living) - H/MD, WA
Hamilton (Hamilton Reach) - H/MD, QLD
Carina - H/MD, QLD
Burwood East (Burwood Brickworks) - HD, VIC
Greenwood - H/MD, WA
Wolli Creek (Discovery Point) - HD, NSW
Eff ective
Interest
as at
30 Sep 19
(%)
Est. total
no. of
units2
Est. total
saleable
area
(‘000 sqm)
Total
GDV
($’m)
PDA
PDA
100.0
100.0
100.0
50.0
100.0
100.0
100.0
100.0
PDA
100.0
2,370
1,545
926
608
471
419
346
278
193
173
85
1
169.7
1,946.3
NA
NA
54.8
NA
26.4
34.4
27.3
NA
11.4
NA
4.3
451.7
170.4
386.3
218.2
207.2
146.2
264.3
112.6
81.7
20.4
26.4
All references to units include apartments, houses and land lots
Notes:
•
• NA relates to land projects
1 L – Land, H/MD – Housing/medium density, HD – High density
2
Includes 100% of joint arrangements (Joint operation - JO and Joint venture - JV) and project development agreements (PDAs)
Hamilton Reach, Queensland • Australia
P48_BR Australia.indd 54
10/12/19 2:43 PM
Business Review • Australia
Investment Property
FPA owns an investment property
portfolio comprising 29 properties
– largely industrial and commercial
properties on Australia’s eastern
seaboard – valued at approximately
A$1.4 billion ($1.3 billion). In addition,
we provide property management
services to assets owned by Frasers
Logistics & Industrial Trust (FLT) and
Frasers Commercial Trust (FCOT).
Our portfolio of properties under
management performed well in
supportive market conditions. At
30 September 2019, the portfolio
enjoyed a 99.4% occupancy rate
with a strong tenant profile and
a weighted average lease expiry
(WALE) of 5.4 years. Performance on
all metrics improved on FY18 results.
In FY19, 125,578 sqm of new leases
and lease renewals were executed.
Demonstrating active capital
management, FPA sold its 50% share in
2 Southbank Boulevard, Victoria for a
net sale price of A$326.2 million
($313.2 million). This sale followed
the high-quality repositioning of the
building and re-leasing of more than
35,000 sqm we undertook with the
co-owner. The gross sale price
represented an initial yield of 4.8%.
Marking seven years of year-on-
year improvement, our GRESB
results were again exceptional. The
GRESB benchmark measures the
environmental, social and governance
performance of real assets. FPA was
crowned Overall Global Sector Leader
for Developers, ranking first among 41
developers. FPA was also named Global
Sector Leader and Overall Regional
Sector Leader in Asia-Pacific for the
Diversified - Office/Industrial category.
Canterbury Road, Braeside,
Victoria • Australia
P48_BR Australia.indd 55
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56 Frasers Property Limited
Business Review • Australia
In total, we traded 27 hectares of
land through FY19, ending the year
with a total of 180 hectares in our
commercial and industrial national
land bank, excluding conditional
sites. The committed forward
commercial and industrial workload
was 136,553 sqm, as at September
2019. Eight facilities are scheduled
for delivery in the ten months
from October 2019. Two of these
projects with a GDV of approximately
A$100.6 million ($93.6 million) are
to be sold externally to third parties,
and the remaining six facilities, with
an investment value on delivery
of approximately A$249.6 million
($232.3 million), are to be retained
on balance sheet.
Australian CBD offi ce markets
retained the attractive fundamentals
of falling vacancy, lower incentives
and eff ective rental growth,
leading to increased levels of
investor demand and ongoing
yield compression in the key
eastern seaboard markets. These
trends were also evident in the
non-CBD metro markets, with
Rhodes Corporate Park in Sydney
performing strongly. It is also
notable that FPA is fi nding increasing
crossover between suburban offi ce
tenants and industrial and logistics
tenants, driving closer supply chain
alignment.
In the industrial market, vacancy
rates remained low, at 2.2% in
Sydney and 2.1% in Melbourne as at
the second quarter of 2019¹. Sydney
and South East Melbourne saw
net eff ective rental growth, while
Brisbane and Western Melbourne
had stabilised rentals. Major
infrastructure works supported
both tenant and investor demand
for prime assets across Sydney,
Melbourne and Brisbane, making
this an attractive asset class and a
natural focus for our operations.
26-30 Lee Street, New South Wales • Australia
Commercial & Industrial
We delivered ten industrial facilities
in FY19, including one industrial
asset expansion with an investment
value of A$5.5 million ($5.2 million)
to be retained on balance sheet
and six industrial assets with an
investment value of A$159.9 million
($153.1 million) to be retained on
balance sheet pending stabilisation.
In addition, we delivered three
industrial assets with combined GDVs
of A$69.4 million ($66.5 million) sold
to third parties.
Three facilities, with a GDV of
A$125.5 million ($120.2 million),
were sold to FLT. These transactions
continued to add scale to FLT on
accretive terms for both FPA and FLT.
Notable industrial transactions
included Phoenix Transport and
global food packaging company
Huhtamaki, both committing to
10-year leases at South West
1 Industrial Estate in Brisbane,
for 9,999 sqm and 12,635 sqm,
respectively. Electronics giant Arlec
Australia signed a 10-year lease
for a 29,020 sqm facility at West
Park Industrial Estate in Truganina,
Victoria.
In February 2019, we sold a
signifi cant land-and-build package
to Jaycar Electronics Group at
Eastern Creek Business Park.
Under this deal, we will deliver a
20,578 sqm state-of-the-art
warehouse and distribution centre,
incorporating robotics technology,
on the 3.5-hectare site, with an
anticipated end value of
A$51.0 million ($47.5 million).
Acquisitions remained a focus as we
actively sought to replenish our land
bank in a highly competitive market.
In FY19 we secured approximately
140 hectares across six industrial
sites in New South Wales, Victoria
and Queensland, including over
35 hectares at Dandenong South
in Melbourne.
1 Urbis: Eastern Seaboard Industrial Vacancy
Study (preliminary) Q2-2019.
P48_BR Australia.indd 56
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Business Review • Australia
Annual Report 2019 57
Annual Report 2019 57
Australia - Commercial & Industrial Completed Properties
Industrial
4 Burilda Close, Wetherill Park3
10 Reconciliation Rise, Pemulwuy
2 Wonderland Drive, Eastern Creek
18 Muir Street, Chullora
Lot 3, Burilda Close, Wetherill Park3
22 Hanson Place, Eastern Creek3
15 Muir Road, Chullora3
227 Walters Road, Arndell Park
57 Effi cient Drive, Truganina
8-28 Hudson Court, Keysborough
11-27 Dorimus Drive, Truganina3
24 Archer Road, Truganina3
33 & 15 Archer Road, Truganina3
39 Naxos Way, Keysborough3
64 West Park Drive, Derrimut
58-76 Naxos Way & 68 Atlantic Drive,
Keysborough3
75-79 Canterbury Road, Braeside3
29-51 Wayne Goss Drive, Berrinba
25-39 Australand Drive, Berrinba3
1 Arthur Dixon Court, Yatala3
44 Cambridge Street, Rocklea3
Offi ce
20 Lee Street, Henry Deane Building, Sydney
26-30 Lee Street, Gateway Building, Sydney
1B Homebush Bay Drive, Rhodes
1F Homebush Bay Drive, Rhodes
1D Homebush Bay Drive, Rhodes
1E Homebush Bay Drive, Rhodes
State
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
QLD
QLD
QLD
QLD
NSW
NSW
NSW
NSW
NSW
NSW
Freshwater Place, Public Car Park, Southbank
VIC
Eff ective
interest
as at
30 Sep 19
(%)
Book value
as at
30 Sep 19
($’m)
Net
lettable
area
(‘000 sq m)
Occupancy
FY19 (%)
FY18 (%)
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
22.0
46.2
43.7
50.6
28.1
41.4
69.6
29.3
21.4
18.9
25.7
29.0
91.7
26.2
26.7
22.2
17.7
22.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
NA1
NA1
NA1
NA1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
NA1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
35.4
31.1
25.0
23.1
21.1
34.0
14.2
NA1
15.2
17.8
14.4
97.7
159.1
73.5
114.0
135.0
13.0
18.1
38.4
37.4
30.2
20.5
20.3
28.6
14.3
NA1
12.4
13.6
10.9
9.1
12.6
12.8
17.6
17.1
1.3
11.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
NA1
100.0
100.0
100.0
100.0
100.0
93.8
93.7
100.0
100.0
100.0
99.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
NA2
100.0
100.0
NA2
32.3
NA2
NA2
100.0
100.0
100.0
72.5
94.5
100.0
100.0
100.0
97.0
Total Commercial & Industrial Completed Properties
1,194.1
589.8
Notes:
1 Asset was sold to FLT
2 New asset
3 Held for sale
P48_BR Australia.indd 57
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58 Frasers Property Limited
Business Review • Australia
Australia - Commercial & Industrial Development Projects
Site
Development for Internal Pipeline
Braeside (Gale Pacifi c & Spec), VIC
Horsley Park (Nu Pure), NSW
Braeside (Puma), VIC
Berrinba (Huhtamaki & Phoenix), QLD
Truganina (Arlec & Spec), VIC
Berrinba (Ceva), QLD
Development for Third Party Sale
Wellington Road (Nissan & Spec), VIC
Eastern Creek (Jaycar), NSW1
Australia - Commercial & Industrial Land Bank
Eff ective
interest
as at
30 Sep 19
(%)
Est. total
saleable
area
(‘000 sqm)
Revenue
to go
(%)
Target
competion
date
100.0
100.0
100.0
100.0
100.0
100.0
50.0
100.0
19.9
20.6
28.2
22.6
35.8
20.8
16.7
20.6
91
99
72
69
64
59
2Q FY20
3Q FY20
3Q FY20
3Q FY20
3Q FY20
4Q FY20
100
51
3Q FY20
3Q FY20
Eff ective
interest
as at
30 Sep 19
(%)
Est. total
saleable
area
(‘000 sqm)
100.0
100.0
100.0
50.0
100.0
100.0
100.0
100.0
100.0
100.0
50.0
100.0
100.0
50.0
50.0
457.8
355.8
324.2
182.9
112.7
69.7
65.1
64.6
56.2
22.2
15.1
10.9
8.7
34.9
15.6
1 Burilda Close, New South Wales • Australia
Site
Industrial
Epping, VIC
Dandenong South, VIC
Tarneit, VIC
Kemps Creek East, NSW
Yatala, QLD
Berrinba, QLD
Braeside, VIC
Horsley Park, NSW
Truganina, VIC
Richlands, QLD
Eastern Creek, NSW
Keysborough, VIC
Eastern Creek, NSW
Offi ce
Mulgrave, VIC
Macquarie Park, NSW
Notes:
•
Profi t on sold sites is recognised on
percentage of completion basis
1 Sold Site
Total
GDV
($’m)
27.0
49.4
39.7
38.5
43.3
34.5
46.2
47.5
Total
GDV
($’m)
279.8
257.1
163.7
213.0
76.5
64.3
64.0
82.8
33.2
19.1
8.6
5.3
5.1
175.8
698.0
P48_BR Australia.indd 58
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Business Review • Australia
Annual Report 2019 59
Annual Report 2019 59
Frasers Logistics & Industrial Trust
(FLT)
FLT, our logistics and industrial-
focused REIT, delivered a
commendable performance in FY19,
closing the year with a distributable
income of A$149.8 million
($143.5 million), an uplift of 26.6%
from the preceding year. This in
turn translated into a DPU of
7.27 Australian cents (7.00 cents),
up 4.8% from a year ago.
Having established a strong foothold
in Europe via its initial portfolio
acquisition of 21 prime logistics and
industrial properties from Frasers
Property Europe in 2018, FLT built
on the momentum gained, acquiring
an additional 11 prime logistics
properties2 this year – three in
Australia, seven in Germany and one
in the Netherlands – augmenting
FLT’s market position across its core
markets.
Since its inception as a listed company
on the SGX-ST in June 2016, FLT
has continued to grow its portfolio
of prime industrial properties,
expanding from an initial portfolio
of 51 Australian properties to 911,2
properties spanning the major
logistics markets of Australia,
Germany and the Netherlands as
at 30 September 2019. This strong
growth was made possible through its
access to a sizeable pipeline of quality
logistics and industrial properties
provided by the Sponsor - Frasers
Property Limited, as well as the eff orts
of the REIT management team.
The REIT continued to actively manage
the portfolio, announcing three
divestments of properties during the
year, all of which were transacted at
premiums to book value.
Eleven leasing deals were executed
in FY19, representing a gross
lettable area (GLA) of 122,554 sqm.
The positive leasing momentum
translated into a high occupancy rate
of 99.6% and weighted average lease
expiry (WALE) by gross rental income
of 6.3 years as at 30 September
2019. Rental income for its current
leases is also underpinned by average
annual rental increments of 3.1%
for the Australian portfolio and
consumer-price-index-linked or fi xed
increments for approximately 93%
of the leases in Germany and the
Netherlands. Subsequent to the year-
end, FLT also entered into a fi ve-year
lease agreement with Amazon for its
property in Perth, Western Australia,
bringing the FLT portfolio occupancy
to 100%.
This year, FLT made its entry into two
major stock indices: the EPRA/NAREIT
Index in March 2019 and the Global
Property Research 250 Index in
September 2019. The EPRA/NAREIT
Index is a benchmark index for
institutional real estate investment
investors worldwide, while the
Global Property Research 250 Index
comprises the 250 most liquid listed
property securities in the world.
1
2
Excludes 610 Heatherton Road, Clayton
South, Victoria, Australia which is classifi ed
as “Investment Property held for Sale”
Excludes the acquisition of two German
properties that are yet to complete as at
30 September 2019
42 Sunline Drive, Truganina, Victoria • Australia
P48_BR Australia.indd 59
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60 Frasers Property Limited
Business Review • Australia
Australia - FLT Industrial Portfolio
Property
21 Kangaroo Avenue
Lot 1, 2 Burilda Close
1 Burilda Close
4-8 Kangaroo Avenue
6 Reconciliation Rise
17 Kangaroo Avenue
8 Distribution Place
7 Eucalyptus Place
10 Stanton Road
8 Stanton Road
8-8A Reconciliation Rise
2 Hanson Place
3 Burilda Close
99 Station Road
Lot 104 & 105 Springhill Road
11 Gibbon Road
2-22 Effi cient Drive
18-34 Aylesbury Drive
1 Doriemus Drive
43 Effi cient Drive
8-28 Hudson Court
42 Sunline Drive
111 Indian Drive
29 Indian Drive
21-33 South Park Drive
22-26 Bam Wine Court
25-29 Jets Court
16-32 South Park Drive
17-23 Jets Court
28-32 Sky Road East
38-52 Sky Road East
2-46 Douglas Street
49-75 Pacifi c Drive
17 Pacifi c Drive & 170-172 Atlantic Drive
17 Hudson Court
78 & 88 Atlantic Drive
77 Atlantic Drive
96-106 Link Road
98-126 South Park Drive
89-103 South Park Drive
1-13 and 15-27 Sunline Drive
115-121 South Centre Road
150-168 Atlantic Drive
211A Wellington Road
468 Boundary Road
State
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
VIC
29 -51 Wayne Goss Drive
QLD
Eff ective
interest
as at
30 Sep 19
Book value
as at
30 Sep 19
Lettable
area
Occupancy
(%)
(A$’m)
('000 sq m)
FY191 (%)
FY182 (%)
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
72.5
26.3
70.5
85.4
42.3
47.3
26.3
32.8
13.5
19.1
47.4
68.5
36.4
20.3
26.4
48.0
46.5
27.0
95.0
25.9
36.8
17.2
38.5
35.0
26.5
24.5
11.1
15.2
7.7
7.8
28.0
22.6
31.0
42.5
34.3
18.2
21.2
26.3
37.5
15.0
31.5
5.3
37.0
40.0
36.6
25.6
41.4
14.3
18.8
40.5
19.2
23.1
12.3
16.1
7.1
10.7
22.5
32.9
20.1
10.8
90.7
16.6
38.3
21.5
74.5
23.1
25.8
14.6
21.7
21.9
22.1
17.6
15.5
12.7
9.9
12.1
46.2
21.8
25.1
30.0
21.3
13.5
15.1
18.6
28.1
10.4
26.2
3.1
27.3
7.2
24.7
15.5
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
NA3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
NA3
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
NA3
P48_BR Australia.indd 60
10/12/19 2:43 PM
Business Review • Australia
8-28 Hudson Court, Victoria • Australia
Australia - FLT Industrial Portfolio (Cont’d)
Property
State
(%)
(A$’m)
('000 sq m)
FY191 (%)
FY182 (%)
Eff ective
interest
as at
30 Sep 19
Book value
as at
30 Sep 19
Lettable
area
Occupancy
103-131 Wayne Goss Drive
10 Siltstone Place
143 Pearson Road
166 Pearson Road
30 Flint Street
55-59 Boundary Road
350 Earnshaw Road
51 Stradbroke Street
57-71 Platinum Street
99 Shettleston Street
286 Queensport Road
99 Sandstone Place
5 Butler Boulevard
20-22 Butler Boulevard
18-20 Butler Boulevard
60 Paltridge Road
Total
1 As at 30 September 2019
2 As at 30 September 2018
3 Acquired by FLT in FY19
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
QLD
SA
SA
SA
WA
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
19.2
32.8
16.0
41.4
40.5
26.5
19.8
58.8
27.4
44.2
23.1
40.0
135.0
8.4
10.5
7.0
12.3
19.5
9.8
30.6
23.2
15.1
13.3
30.8
14.9
20.5
15.2
21.5
54.2
8.2
11.2
7.0
20.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
6 4.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
64.5
2,094.0
1,377.6
P48_BR Australia.indd 61
10/12/19 2:43 PM
An den Dieken, Ratingen • Germany
Europe - FLT Industrial Portfolio
Property
Cluster
(%)
(A$’m)
('000 sq m)
FY191 (%)
FY182 (%)
Eff ective
interest
as at
30 Sep 19
Book value
as at
30 Sep 19
Net
lettable
area
Occupancy
Elbestraße 1-3
Am Krainhop 10
Dusseldorf-Cologne
Hamburg-Bremen
Otto-Hahn Straße 10
Stuttgart-Mannheim
Eiselauer Weg 2
Industriepark 309
Industriepark 1
Am Exer 9
Stuttgart-Mannheim
Stuttgart-Mannheim
Munich-Nuremberg
Leipzig-Chemnitz
Johann-Esche-Straße 2
Leipzig-Chemnitz
Jubatus-Allee 3
Brede Steeg 1
Koperstraße 10
Munich-Nuremberg
Utrecht-Zeewolde
Munich-Nuremberg
Ambros-Nehren-Straße
Stuttgart-Mannheim
Saalhoff er Straße 211
Dusseldorf-Cologne
Gustav-Stresemann-Weg 1
Dusseldorf-Cologne
Am Autobahnkreuz 14
Hamburg-Bremen
Keff elker Straße 66
Dusseldorf-Cologne
Belle van Zuylenstraat 5
Tilburg-Venlo
Handelsweg 26
Utrecht-Zeewolde
Heierhoevenweg 17
Tilburg-Venlo
Oberes Feld 2, 4, 6, 8
Munich-Nuremberg
Murrer Straße
Mandeveld 12
Stuttgart-Mannheim
Meppel
Walter-Gropius-Straße 19
Dusseldorf-Cologne
Junkerstraße, Graben
Munich-Nuremberg
Dieselstraße 30
Am Bühlfeld 2-8
Munich-Nuremberg
Stuttgart-Mannheim
Im Birkengrund 5-7
Frankfurt
An den Dieken
Dusseldorf-Cologne
Bietigheimer Straße 50-52
Stuttgart-Mannheim
Total
1 As at 30 September 2019
2 As at 30 September 2018
3 Acquired by FLT in FY19
18.2
18.2
18.0
18.2
18.2
18.2
18.2
18.2
18.2
19.2
18.0
18.2
18.2
18.2
18.2
18.2
19.2
19.2
19.2
18.2
18.2
19.2
18.0
19.2
18.0
18.0
18.0
18.0
18.0
23.3
29.0
82.5
69.5
77.6
25.6
22.5
27.2
12.5
107.6
73.4
22.7
46.9
25.0
30.0
16.4
24.9
65.8
43.9
112.2
56.2
42.1
31.3
54.8
48.6
53.2
48.0
74.9
112.5
1,460.1
16.8
20.7
43.8
24.5
55.0
14.2
11.5
18.1
9.4
84.8
44.2
12.3
32.0
13.0
11.5
13.4
18.1
51.7
32.6
72.6
21.1
31.0
19.4
11.5
13.0
44.5
23.2
43.1
38.9
846.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
NA3
NA3
NA3
NA3
NA3
NA3
NA3
NA3
P48_BR Australia.indd 62
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Annual Report 2019 63
Annual Report 2019 63
of the joint venture’s divestment
strategy. Central Park Mall, DUO Retail
and Park Lane Retail were off ered for
sale in one line via an international
Expression of Interest campaign,
and sold for A$174.5 million
($162.4 million).
At the close of FY19, the retail
development pipeline comprised
three assets with a GDV of
A$0.3 billion ($0.2 billion).
We remain focused on creating
successful, sustainable, connected
communities that improve the
social, economic and urban fabric
of Australia.
Stage 1 of the 50,000-sqm retail
centre – comprising a supermarket,
convenience retail and an open-air
dining district – is 68%1 leased ahead
of its opening in early 2020.
In another mixed-use collaboration
with our residential team, the
Ed.Square Town Centre in western
Sydney is a super-neighbourhood
centre incorporating an ‘Eat Street’,
fresh food marketplace, cinema,
childcare centre, w aterplay area,
24-hour gymnasium, tavern and
healthcare facilities. Retail leasing
commenced during the year, with
anchor tenant Coles secured. The
centre is due to open in mid-2020.
The fi nal three retail assets at Central
Park2 in Sydney were sold in October
2019, eff ecting the fi nal component
Ed.Square, New South Wales • Australia
Retail
FPA focuses on non-discretionary
retail incorporating food and
entertainment uses, to create
bespoke ‘super-neighbourhood’
shopping centres tailored to their
local catchments in under-supplied
markets. This model is most eff ective
in a mixed-use development
context, where we can curate the
residential and retail components
of the precinct for the greatest
community and commercial benefi t.
As land economics and demographics
inexorably drive changes in urban
form, we are positioning FPA to
embrace mixed-use as a core skill.
In FY19, we prepared three retail
centres to be completed and
opened by mid-2020. This included
recruitment to enhance our asset
management, leasing and marketing
capabilities to manage our growing
portfolio of operational assets.
At Burwood Brickworks in Victoria,
we are creating the world’s most
sustainable retail centre with a Living
Building ChallengeTM certifi cation.
Construction progressed well in FY19,
with the 13,000-sqm centre open for
trade on 6 December 2019. All anchor
tenants have been secured, including
tenants for Burwood Brickwork’s
innovative 2,000-sqm rooftop
urban farm.
Eastern Creek Quarter, a greenfi eld
retail precinct in Sydney’s west,
was also under construction.
Australia - Retail Completed Properties
Site
Central Park JV1 (Retail), 28 Broadway,
Chippendale, NSW
Central Park JV2 (Retail), 38 Broadway,
Chippendale, NSW
Coorparoo Square (Retail), 296 Old Cleveland Rd,
Coorparoo, QLD
Total Retail Completed Properties
Eff ective
interest
as at
30 Sep 19
(%)
Est. total
saleable
area
(‘000 sqm)
Total
GDV
($’m)
Occupancy
FY19 (%)
FY18 (%)
50.0
50.0
100.0
13.7
115.0
1.1
6.8
21.5
8.8
44.0
167.8
98.5
89.0
88.4
96.8
75.7
91.2
1
2
Leases signed, by % of total GLA as at 30 September 2019
The majority of Central Park, including these retail assets, is a joint venture between Frasers Property Australia and Sekisui House Australia
P48_BR Australia.indd 63
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Artist’s impression of Ed.Square, New South Wales • Australia
Australia - Retail Development Properties
Site
Horsley Park (WSPT Stage 1), NSW
Shell Cove (Stage 3), NSW
Burwood East (Burwood Brickworks), VIC
Edmondson Park (Stage 1), NSW
Australia - Retail Land Bank
Site
Horsley Park (WSPT Retail), NSW
Wyndham Vale, VIC
Edmondson Park, NSW
1 PDA: Project development agreement
Eff ective
interest
as at
30 Sep 19
(%)
PDA1
PDA1
100.0
100.0
Est. total
saleable area
('000 sqm)
Revenue
to go
(%)
Target
competion
date
10.4
0.4
13.0
24.3
25
23
25
50
1Q FY20
1Q FY20
1Q FY20
1Q FY21
Eff ective
interest
as at
30 Sep 19
(%)
PDA1
100.0
100.0
Est. total
saleable
area
('000 sqm)
109.9
42.5
2.2
Type
Retail
Retail
Retail
Total
GDV
($’m)
65.5
4.7
114.2
188.2
Total
GDV
($’m)
101.4
113.2
26.1
P48_BR Australia.indd 64
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People, Innovation and
Sustainability
We believe that by investing in our
people and culture, we create the
essential conditions for business
evolution and innovation. In FY19,
these investments included multi-
level management training, safety,
diversity and equity programmes, for
which we hold ourselves to account
by measuring their eff ectiveness.
Our biennial Human Synergistics
staff culture survey, completed in
early 2019, attests to our success in
enabling a collaborative, connected
and future-ready workforce.
FPA’s innovation initiative, now in
its fourth year, is paying dividends in
culture and in customer experience.
In FY19 we launched DASH, a
‘bottom-up’ innovation practice
as a rapid-fi re four week sprint
for our staff to solve pressing
customer and business challenges.
A new challenge would be posed
at the top end of the month, with
solutions shortlisted within a
fortnight and experimentation
commencing immediately. To date,
Annual Report 2019 65
we have applied DASH to challenges
facing our property management,
community development and
construction teams.
We continue to develop or enhance
the software and systems we use to
deliver value to our customers and
improve our operational effi ciency.
In FY19 we launched a major IT
knowledge management project and
embraced the Group’s global rollout
of the Workplace communication
platform. We also developed and
launched eTracker, an app enabling
the systematic management of
quality assurance checks, pre-
settlement inspections and defect
resolution, and YourSpace, an online
portal for our industrial customers.
Our deep dive into the residential
customer experience, undertaken
in a 10-week sprint involving 16
workshops, surfaced powerful
insights – both data-driven and
human-centred – which would inform
our next phase of digital innovation.
Sustainability is a natural focus of
our innovation practice. In FY19 we
became the fi rst major developer
to pilot Passive House at our Life,
Point Cook community, the highest
standard in built form quality.
We also embarked upon a highly
collaborative project, with Resilient
Melbourne and others, enabling early
community connection and resilience
in greenfi eld development.
Passive House, Melbourne, Victoria • Australia
P48_BR Australia.indd 65
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66 Frasers Property Limited
Business
Review
HOSPITALITY
Refreshing Our
Growth Strategy
FY19
Revenue for
Hospitality
$798.3
million
FY19
PBIT
$131.8
million
Artist’s impression of Modena by Fraser Nanjing • China
P66_BR Hospitality.indd 66
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Annual Report 2019 67
With renewed focus and perspectives, we have
embarked on a review of Frasers Hospitality’s
portfolio management and growth strategy with
the goal of unlocking value, recycling assets and
consolidating operational effi ciencies across our
entire portfolio.
At Frasers Hospitality (FH), we continued to
strengthen our position as an integrated serviced
residences and hotel owner with a presence in
Asia, Australia, Africa, Europe and the Middle
East. Our business portfolio now comprises
serviced residences, hotel residences and third-
party managed hotels held by Frasers Hospitality
Trust (FHT) as well as non-real estate investment
trust (REIT) hospitality assets. In redefi ning our
proprietary brands, we looked specifi cally at how
we could appeal to the lifestyle aspirations of
business and leisure travellers on short, mid-term
and extended stays.
In the year under review, our revenue and PBIT were
$798.3 million and $131.8 million respectively,
underpinned by continued growth in our China,
Europe and Singapore properties. The PBIT was
negatively aff ected by weakness in the Australia
markets as well as pre-opening expenses at two
new properties, Fraser Suites Hamburg and Capri
by Fraser, China Square. As 60% of FH’s portfolio
comprises overseas properties, the depreciation
of foreign currencies – particularly the Australian
dollar, British pound and Euro – have partially off set
the operating gains.
A New Direction
FY19 was most signifi cant for the new business
focus we adopted. We began with an extensive
review of our portfolio management and growth
strategy, looking at areas we could unlock
value, recycle assets and consolidate operating
effi ciencies.
In mapping out our growth plans, we established
a clustering structure to deepen the roles of our
existing Asia Pacifi c, Europe-Middle East-Africa,
China and North Asia management teams. This
structure improves the optimisation of resources
and cluster accountability as the teams are better
placed to react and adapt to their respective market
changes and opportunities, at both strategic and
tactical levels.
Resulting from our review, we divested a non-core
asset in the Philippines, Fraser Place Manila, the
proceeds of which could be redeployed for the
redevelopment or enhancement of assets.
Koh Teck Chuan, CEO, Frasers Hospitality
Capri by Fraser, Brisbane • Australia
P66_BR Hospitality.indd 67
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Capri by Fraser, China Square • Singapore
Asia Pacifi c
As new supplies impacted
occupancies, hotels in key cities in
Australia and Singapore experienced
lower average occupancy and
average daily rates. In Australia,
the decline in revenue per available
room (RevPAR) was aff ected by the
depreciation of the Australian dollar
against the Singapore dollar.
During the year, we opened several
new properties in Southeast Asia. In
Thailand, the 152-room Modena by
Fraser Buriram appeals especially to
sports fans due to its proximity to the
Chang International Circuit and the
Chang Arena.
In Malaysia, two new properties
were opened in the state of Johor,
attracting Singapore-based travellers
who are familiar with the brand.
While Fraser Place Puteri Harbour
provides spacious choices for longer-
stay guests, Capri by Fraser in Johor
Bahru caters to corporate and leisure
travellers on shorter stays.
In Singapore, we increased the total
number of properties we owned and/
or managed to six, with the opening
of Fraser Residence Orchard and Capri
by Fraser, China Square. Located in
Singapore’s most renowned lifestyle
precinct, Fraser Residence Orchard
enjoys proximity to Singapore’s
key shopping and entertainment
destinations. Situated within a
landscaped oasis, the property
off ers 115 luxurious and spacious
apartments including a 419-sqm
penthouse with unobstructed views of
the city. Capri by Fraser, China Square,
located within Singapore’s CBD,
opened in May 2019, catering to the
business and corporate travel sector as
well as regional leisure travellers.
We secured a new management
contract for Modena by Fraser Hanoi
in Vietnam.
P66_BR Hospitality.indd 68
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Annual Report 2019 69
Europe, the Middle East and Africa
(EMEA)
In our UK and Europe markets,
RevPAR registered increases during
the year. While most of our UK
properties were able to benefi t from
higher inbound tourist arrivals, our
properties in Continental Europe also
enjoyed higher rates and occupancies
bolstered by growth in the leisure
and business sectors. However, these
gains were partially off set by the
depreciation of the British pound and
the Euro against the Singapore dollar
during the year.
We further rationalised the
operations of FH and Malmaison
Hotel du Vin to integrate the teams
in the UK. This move has resulted in
greater synergy and effi ciencies in
our operations, marketing eff orts and
related strategies.
Reinvesting to rejuvenate our
properties, we relaunched Hotel
du Vin Bristol during the year. We
plan to bolster the Malmaison and
Hotel du Vin portfolio through
constant invigoration of the food and
beverage off erings which continue
to be impacted by competition in
the High Street and Brexit-related
uncertainties.
In May 2019, we opened our third
property in Germany, Fraser Suites
Hamburg, a fi ve-star hotel we
converted from an iconic heritage
110-year-old tax offi ce in the heart
of Hamburg. The 154-room property
is our fi rst Fraser Suites property
in Germany, complementing our
two Capri by Fraser properties in
Frankfurt and Berlin.
Fraser Suites Hamburg • Germany
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70 Frasers Property Limited
Business Review • Hospitality
In Tokyo, the development of the
224-room Fraser Suites Akasaka is
on schedule to open in March 2020,
ahead of the Tokyo Olympics.
China and North Asia
Except for Fraser Suites Dalian –
which was operating on partial
inventory for the fi rst nine months
of FY18 versus a full inventory for
the same period in FY19 – our China
portfolio registered a marginal 1%
increase in RevPAR while maintaining
strong average occupancy rates
exceeding 85% consistently.
We signed up four new properties
in China, namely Modena by Fraser
Chengdu, Fraser Suites Pazhou,
Guangzhou, Fraser Residence
Nanjing and Fraser Residence Chong
Qing. Having already established a
presence in Chengdu, Guangzhou
and Nanjing prior to these new
management contracts, we expect to
increase operational effi ciencies from
shared resources and knowledge
within our existing clusters.
Fraser Suites Le Claridge Champs Elysées, Paris • France
Fraser Suites Akasaka, Tokyo • Japan
P66_BR Hospitality.indd 70
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Annual Report 2019 71
landscape. From there, we redefi ned
and repositioned our brands to
develop a sustainable brand strategy
and architecture which would allow
us to leverage our brand equity and
deliver guest experiences based on
emerging and relevant trends.
In addition to assessing our digital
marketing platforms, we constantly
review new trends and opportunities
in technology, as an enabler, to better
meet guest needs and to address
manpower challenges.
Awards and Accolades
This year in review, FH received
more than 60 awards globally,
refl ecting our strong reputation
amongst travel professionals,
consumers and business partners.
Our properties clinched a range of
awards in their respective regions for
Service Excellence and Best Serviced
Apartment. These awards are
testament to our ability to anticipate
and exceed guests’ needs through
exemplary service.
Most notably, we clinched the
World’s Leading Serviced Apartment
Brand by World Travel Awards for
the fi fth consecutive year. Fraser
Suites Le Claridge Champs Elysées in
Paris was recognised as the World’s
Leading Serviced Apartment for the
second consecutive year and the
Best Serviced Residence Operator by
Travel Trade Gazette for the seventh
consecutive year.
Operational and Marketing
Effi ciencies
FH concluded a wide review of
operational effi ciencies across
multiple platforms and departments
this year, including an in-depth
analysis of our digital marketing and
loyalty platforms, to identify gaps
and opportunities in a constantly
evolving industry.
We continued to roll-out our
new and customised revenue
management system which would
facilitate better yield management
across all properties. On-going and
rigorous training will continue to
be provided at property, cluster
and corporate levels to drive better
revenue streams.
We further conducted a brand
audit to ascertain the relevance
and sustainability of our brands
against a competitive and disruptive
Serviced Residences – Properties in Operation
Owned Properties
Country
Property
Australia
Fraser Suites Perth
Fraser Place Melbourne
Capri by Fraser, Brisbane
China
Fraser Suites Beijing
Fraser Suites Dalian
Indonesia Fraser Residence
Eff ective
interest
as at
30 Sep 19
(%)
No. of
units
Occupancy
Average daily rate
FY19 (%)
FY18 (%)
FY19
FY18
Book value
as at
30 Sep 19
(‘m)
100.0
100.0
100.0
100.0
100.0
236
112
239
357
259
88.3
84.3
81.1
90.9
65.4
89.1
90.6
82.7
A$244.4
A$252.9
A$103.0
A$146.0
A$145.3
A$163.8
A$182.6
A$31.0
A$87.0
92.4
RMB862.3
RMB849.3 RMB1,234.0
53.4
RMB475.2
RMB556.4
RMB380.0
Sudirman, Jakarta
100.0
108
79.4
87.8
US$110.3
US$111.3
US$32.4
UK
Spain
Fraser Suites Kensington,
London
Capri by Fraser,
Barcelona
Singapore Capri by Fraser,
100.0
100.0
70
97
83.3
84.3
£249.3
£252.9
£111.0
85.0
85.6
€ 139.4
€ 129.8
€ 21.2
Changi City
100.0
313
85.2
86.4
$233.7
$242.1
$209.0
Fraser Place Robertson
Walk, Singapore
Capri by Fraser,
China Square
Germany
Capri by Fraser, Frankfurt
Capri by Fraser, Berlin
Fraser Suites Hamburg
Total No. of Rooms Owned
100.0
164
87.3
86.2
$292.9
$298.2
$218.5
100.0
100.0
100.0
100.0
304
153
143
154
2,709
50.7
74.6
80.7
39.0
-
$225.3
-
$290.5
78.5
82.2
-
€ 145.6
€ 115.4
€ 175.2
€ 144.4
€ 105.1
-
€ 37.9
€ 35.1
€ 70.3
P66_BR Hospitality.indd 71
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72 Frasers Property Limited
Business Review • Hospitality
Managed Properties
Country
Property
Bahrain
Fraser Suites Bahrain
China
Fraser Place Shekou, Shenzhen
Fraser Suites Diplomatic Area, Bahrain
Fraser Residence Shanghai
Fraser Suites Top Glory, Shanghai
Fraser Suites Nanjing
Modena by Fraser Putuo Shanghai
Fraser Suites Chengdu
Fraser Suites Guangzhou
Modena by Fraser Wuxi New District
Modena by Fraser Wuhan
Fraser Place Tianjin
Fraser Place Binhai, Tianjin
Modena by Fraser Changsha
Capri by Fraser, Shenzhen
Fraser Suites Shenzhen
France
Fraser Suites Harmonie, Paris La Defense
Fraser Suites Le Claridge Champs Elysées, Paris
Hungary
Indonesia
India
Japan
UK
Fraser Residence Budapest
Fraser Residence Menteng, Jakarta
Fraser Place Setiabudi, Jakarta
Fraser Suites New Delhi
Fraser Residence Nankai, Osaka
Fraser Residence Prince of Wales Terrace, London
Fraser Residence Bishopgate, London
Fraser Residence Blackfriars, London
Fraser Residence Monument, London
Fraser Residence City, London
Malaysia
Fraser Place Kuala Lumpur
Capri by Fraser, Kuala Lumpur
Fraser Residence Kuala Lumpur
Fraser Place Puteri Harbour
Capri by Fraser, Johor Bahru
Fraser Suites Abuja
Fraser Suites Muscat
Fraser Suites Doha
Fraser Suites West Bay, Doha
Nigeria
Oman
Qatar
Saudi Arabia
Fraser Suites Riyadh
Singapore
Fraser Residence Singapore
Fraser Residence Orchard, Singapore
South Korea
Fraser Place Central, Seoul
Fraser Place Nandaemum, Seoul
Switzerland
Fraser Suites Geneva
Thailand
Fraser Suites Sukhumvit, Bangkok
Modena by Fraser Bangkok1
North Park Place, Bangkok
Modena by Fraser Buriram
Turkey
Fraser Place Anthill, Istanbul
Fraser Place Antasya, Istanbul
UAE
Vietnam
Fraser Suites Dubai
Fraser Suites Hanoi
Capri by Fraser, Ho Chi Minh City
No. of
units
Occupancy
FY19 (%)
FY18 (%)
90
114
232
324
187
210
348
360
332
120
172
192
224
353
184
211
134
114
51
128
151
92
114
18
26
12
14
22
289
240
337
297
316
126
119
138
396
95
72
115
271
252
67
163
239
105
152
116
80
268
185
175
70.7
71.8
90.5
89.2
86.9
82.8
76.4
75.4
81.1
86.9
88.3
90.2
66.0
59.0
64.8
81.8
77.9
74.1
92.2
74.5
84.6
78.1
82.1
67.4
90.9
89.2
84.8
90.0
65.5
71.0
54.9
25.8
34.2
70.1
62.5
77.3
85.6
74.5
70.6
50.2
85.8
82.4
81.7
81.0
66.0
44.6
30.3
87.0
68.2
72.5
87.0
69.0
71.6
66.1
91.2
87.7
86.4
87.6
80.1
76.9
77.3
86.3
83.2
91.8
25.6
52.5
60.1
75.5
77.8
81.7
92.0
87.7
82.7
74.7
84.7
81.6
87.1
92.8
92.3
90.5
68.9
81.9
62.2
-
-
47.5
26.7
66.0
93.7
59.3
24.9
-
78.3
78.0
81.2
83.9
65.8
30.6
-
76.0
81.4
67.9
90.0
75.4
Total No. of Rooms (Under Management)
9,142
1
The Group has a 55.6% stake in Modena by Fraser Bangkok as at 30 September 2019. The property is owned by Golden Land Property Development Plc
P66_BR Hospitality.indd 72
12/12/19 5:27 PM
Fraser Residence Orchard • Singapore
Modena by Fraser Buriram • Thailand
Properties Under Development
Country
Property
Japan
UK
Ginza, Tokyo
Aberdeen, Scotland
1
Total book value of the project as at 30 September 2019
Eff ective
interest
as at
30 Sep 19
(%)
100.0
100.0
Est. no.
of units
199
144
Book value
(‘m)
('M)
¥13,837.81
£3.91
Target
Opening
2023
2023
P66_BR Hospitality.indd 73
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74 Frasers Property Limited
Business Review • Hospitality
MHDV Group of Hotel
Property
The UK
Effective
interest
as at
30 Sep 19
(%)
No. of
units
Occupancy
Average daily rate
FY19 (%)
FY18 (%)
FY19
FY18
Book value
as at
30 Sep 19
(‘m)
Malmaison Aberdeen
Master leased
Malmaison Belfast
Malmaison Birmingham
Malmaison Dundee
Malmaison Edinburgh
Malmaison Glasgow
Malmaison Leeds
Malmaison Liverpool
Malmaison London
(Formely known as
London Charterhouse)
Malmaison Manchester
Malmaison Newcastle
Malmaison Oxford
Malmaison Reading
100.0
Master leased
Master leased
100.0
100.0
100.0
100.0
Master leased
Master leased
Master leased
Master leased
100.00
Malmaison Brighton
Master leased
Malmaison Cheltenham
Hotel du Vin Birmingham
Hotel du Vin Brighton
Hotel du Vin Bristol
Hotel du Vin Cambridge
Hotel du Vin Cheltenham
Hotel du Vin Edinburgh
Hotel du Vin Glasgow
Hotel du Vin Harrogate
Hotel du Vin Henley
Hotel du Vin Newcastle
Hotel du Vin Poole
Hotel du Vin St Andrews
Hotel du Vin Tunbridge Wells
Hotel du Vin Wimbledon
Hotel du Vin Winchester
Hotel du Vin York
Hotel du Vin AVG Bristol
Hotel du Vin Exeter
Hotel du Vin Stratford Upon Avon
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
79
64
192
91
100
72
100
130
97
167
122
95
75
73
61
66
49
40
41
49
47
49
48
43
42
38
40
34
48
24
44
79
59
46
Total No. of Rooms Owned and Leased
2,404
74.2
83.5
88.2
79.7
87.2
84.5
84.7
85.1
91.6
86.7
88.7
90.4
82.6
86.9
82.2
79.0
86.9
88.8
83.7
84.8
89.3
84.4
80.4
80.5
83.8
82.2
78.7
83.3
91.4
88.2
84.9
84.1
87.5
84.5
71.4
89.7
89.0
78.7
86.3
83.5
85.0
84.4
88.0
86.6
87.7
90.3
82.4
84.6
77.0
84.6
85.6
86.5
80.6
82.0
87.9
81.0
81.8
80.2
80.0
80.5
76.4
79.4
84.8
84.8
81.9
70.0
84.9
89.2
£92.9
£99.2
£102.3
£69.6
£104.5
£94.0
£94.0
£96.3
£171.5
£109.0
£95.6
£171.7
£110.3
£114.3
£110.8
£117.1
£137.5
£122.4
£150.8
£112.4
£141.6
£130.3
£107.9
£130.8
£95.6
£110.9
£158.8
£118.9
£142.0
£134.6
£104.0
£105.9
£103.7
£100.2
£95.9
£103.9
£100
£78.9
£104.4
£100.7
£92.3
£91.7
£168.5
£108.0
£98.2
£178.6
£111.0
£114.3
£112.0
£109.8
£139.9
£127.9
£165.0
£114.7
£141.6
£135.4
£107.2
£134.6
£95.9
£114.4
£152.2
£121.5
£141.7
£136.7
£104.6
£95.8
£105.9
£89.2
£0.4
£7.4
£1.6
£0.3
£15.3
£10.9
£15.3
£14.3
£2.5
£1.8
£0.8
£0.9
£13.6
£4.4
£12.1
£10.0
£18.3
£12.1
£15.2
£8.7
£11.9
£11.2
£7.3
£9.2
£4.6
£4.0
£6.3
£8.8
£17.3
£7.7
£9.9
£28.0
£10.5
£9.3
P66_BR Hospitality.indd 74
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Annual Report 2019 75
Malmaison Oxford • UK
Hotel du Vin Bristol • UK
P66_BR Hospitality.indd 75
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76 Frasers Property Limited
Business Review • Hospitality
Novotel Melbourne on Collins, Melbourne, Victoria • Australia
As at 30 September 2019, FHT’s
portfolio of 15 quality assets had a
combined appraised value of
$2.33 billion, a 2.9% reduction from
the year before. This was due mainly
to the weakening of most functional
currencies, except for the Japanese
yen, against the Singapore dollar. In
local currency terms, the valuations
for all country portfolios were
higher, except in Australia, while the
valuation for the Malaysia portfolio
was unchanged.
Frasers Hospitality Trust
For FY19, Frasers Hospitality Trust
(FHT) reported a gross revenue of
$149.8 million and NPI of $111.7
million, refl ecting decreases of 3.9%
and 4.6% year-on-year, respectively.
FHT’s Singapore portfolio recorded
higher revenue due to increased
occupancies while its UK portfolio
benefi tted from the weaker British
pound, which led to all properties
recording healthy gains in RevPAR.
However, these were off set by
weaker performances of its Australia
and Malaysia portfolios as well as
foreign exchange impact which
accounted for 80% and 60% of the
declines in gross revenue and NPI
respectively.
FHT’s income available for
distribution decreased by 6.1% to
$83.9 million, while its distribution
per stapled security was 4.41 cents,
7.3% lower than a year ago.
InterContinental Singapore • Singapore
P66_BR Hospitality.indd 76
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Properties Held Through FHT
Country
Property
Singapore
InterContinental Singapore1
Kuala Lumpur
The Westin Kuala Lumpur1
Fraser Suites Singapore2
Kobe
Sydney
Melbourne
Glasgow
Edinburgh
London
ANA Crowne Plaza Kobe1
Fraser Suites Sydney2
Novotel Sydney Darling Square1
Sofi tel Sydney Wentworth1
Novotel Melbourne on Collins1
Fraser Suites Glasgow2
Fraser Suites Edinburgh2
Fraser Suites Queens Gate, London2
ibis Styles London Gloucester Road1
Park International London1
Fraser Place Canary Wharf, London2
Germany
Maritim Hotel Dresden
Total number of rooms owned and managed
Annual Report 2019 77
Annual Report 2019 77
Eff ective
interest
as at
30 Sep 19
(%)
24.6
24.6
24.6
24.6
24.6
24.6
24.6
24.6
24.6
24.6
24.6
24.6
24.6
24.6
24.6
Book value
as at
30 Sep 19
(‘m)
$532.0
$305.0
MYR420.0
¥16,800.0
A$128.0
A$114.0
A$280.0
A$240.0
£10.9
£15.4
£59.9
£20.7
£43.3
£42.0
€ 69.3
No. of
Units
406
255
443
593
201
230
436
380
98
75
105
84
171
108
328
3,913
InterContinental Singapore • Singapore
1 As the Group consolidates FHT and the operating entities, these properties are reclassifi ed as property, plant and equipment and are stated at cost less
accumulated depreciation and any impairment
Book value as reported by FHT. The Group adjusted the book value to refl ect its freehold valuation in the property
2
P66_BR Hospitality.indd 77
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78 Frasers Property Limited
Business
Review
EUROPE AND REST OF ASIA
Strengthening Our
Multi-national Footprint
FY19
Revenue for
Europe and Rest of Asia
$801.0
million
FY19
PBIT
$466.8
million
Bietigheimer Straße 50-52, Tamm • Germany
P78_BR Europe.indd 78
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Annual Report 2019 79
As a multi-national property Group, we continued to
grow our portfolio across asset classes and geographies
during the year.
CONTINENTAL
EUROPE
Am Bühlfeld 2-8, Herbrechtingen • Germany
Five of the properties formed part of
the Alpha Industrial portfolio, which
FPE acquired in FY18, with 19 of the
21 logistics and light industrial assets
that formed part of the portfolio
acquisition now fi nalised.
In addition, we completed the
acquisition of a state-of-the-art,
purpose-built cross dock facility for
parcel delivery company, Hermes, in
Billbrook, at the Hamburg port area.
This acquisition, at a market value of
€49.5 million ($74.7 million), was the
last in a portfolio of fi ve facilities FPE
built for Hermes since FY18.
In Continental Europe, we own,
develop and manage logistics
and light industrial properties in
Germany, the Netherlands and
Austria through Frasers Property
Europe (FPE). These countries are
important markets for the Group due
to their long association with the
light industrial and logistics sectors,
which continue to be bolstered by
e-commerce, urbanisation and last-
mile logistics trends.
Investment Management
During the year, we completed the
acquisition of eight strategically
located properties – comprising three
in Germany, three in Austria and two
in the Netherlands – for a combined
market value of €186.5 million
($281.4 million) and a total lettable
area of about 139,000 sqm.
P78_BR Europe.indd 79
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80 Frasers Property Limited
Business Review • Europe and Rest of Asia
The e-commerce, food and grocery
sectors will continue to be key drivers
of demand, at a time when most core
established European markets are
experiencing labour constraints and
land shortages. In Germany, supply
constraints have increased the growth
potential of locations such as Leipzig
and Halle, Hanover, Magdeburg,
Rhine-Neckar, Lower Bavaria and
Eastern Westphalia. Similarly, the
Netherlands is facing reduced vacancy
rates in prime markets, such as Venlo.
Hermes facility, Hamburg • Germany
In the Netherlands, we acquired two
logistics properties in Breda for a total
market value of €8.3 million
($12.5 million). One of the assets,
comprising 8,000 sqm of modern
logistics space, is leased to a German
retail company. The other asset is on
a short-term leaseback to the original
owner. It will be redeveloped once
the tenant has vacated the site, in
our fi rst-ever development project in
the country. We expect to commence
redevelopment in 2020.
12 assets were sold during the year,
with 10 of these to Frasers Logistics
and Industrial Trust (FLT) for a total
consideration of €345.6 million
($521.4 million), as well as two
non-core assets in Rotterdam to an
external buyer for a total price of
€32.8 million ($49.5 million).
Development Platform
FPE completed two new
developments during the year, at
Obertshausen and at Bielefeld, which
are expected to collectively generate
about €1.6 million ($2.4 million)
of gross rental income each year.
Both developments supported
the expansion needs of existing
customers. Obertshausen is a
built-to-suit facility for packaging
and fulfi lment company Mühle,
while Bielefeld is a 22,500 sqm
development pre-committed to
tenant B&S.
In addition to a project completed
on behalf of a third-party client,
there are two projects at various
stages of development in Frankenthal
and Egelsbach.
FPE currently has two development
projects under construction, with
completion expected in 2020. The
fi rst is a speculative development
project on a 33,000 sqm estate in
Duisburg, where approximately
46,500 sqm of space has already
been completed. The second is a
21,500 sqm facility in Mannheim, on a
long-term lease to BASF, which is due
for completion in late 2019.
Asset Management
Over the last 12 months, eight new
leases were signed and fi ve leases
were renewed, with a total annual
value of €3.0 million ($4.5 million) of
rent. The new leases and extensions
covered 53,000 sqm of space at seven
diff erent assets, with the portfolio
occupancy at 99% as at September
2019.
P78_BR Europe.indd 80
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Annual Report 2019 81
Annual Report 2019 81
Eff ective
interest
as at
30 Sep 19
(%)
Book value
as at
30 Sep 19
($’m)
Net
lettable
area
(‘000 sqm)
Occupancy
FY19 (%)
FY18 (%)
94.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
93.1
93.1
93.1
94.0
94.0
94.0
94.0
100.0
100.0
94.0
100.0
100.0
100.0
107.7
125.3
58.1
80.6
60.6
87.4
7.4
13.3
27.3
30.6
42.9
36.8
82.2
5.1
27.2
13.6
52.8
18.3
37.7
27.8
27.8
35.8
13.1
13.1
13.1
11.5
6.4
9.3
21.8
31.1
22.7
22.3
46.6
5.0
19.9
17.0
30.2
29.4
24.8
10.4
9.3
26.9
95.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
95.7
100.0
84.0
100.0
100.0
82.5
98.9
100.0
100.0
8.6
3.9
8.3
4.2
100.0
100.0
893.5
521.7
95.3
100.0
100.0
100.0
NA¹
100.0
100.0
100.0
NA¹
NA¹
NA¹
100.0
98.0
100.0
100.0
100.0
77.9
100.0
NA¹
NA¹
NA¹
NA¹
NA¹
Eff ective
interest
as at
30 Sep 19
(%)
Net
lettable
area
('000 sqm)
94.0
NA²
NA²
34.2
29.5
21.8
85.5
Target
completion
3Q FY20
1Q FY21
1Q FY20
Europe – Industrial Portfolio
Property Address
Location
Germany
Mellinghofer Straße 55
Mühlheim
Buchäckerring 18
Genfer Allee 6
Bad Rappenau
Mainz
Gewerbegebiet Etzin 1
Berlin (Ketzin an der Havel)
Billbrookdeich 167-171
Hamburg
Werner-von-Siemens Straße 35
Saarwellingen
Werner-von-Siemens Straße 44
Saarwellingen
Thomas-Dachser-Straße 3
Überherrn
Fuggerstraße 15
Fuggerstraße 13
Fuggerstraße 17
Rheindeichstraße 155
Moselstraße 70
An der Trift 75
Hutwiesenstraße 13
Oskar-von-Miller-Straße 2
Leverkuser Straße 65
Austria
Schemmerlstraße 72
Cargo Nord, Objekt 3
Cargo Nord, Objekt 10-12
Styriastraße 15
Netherlands
Hazeldonk 6308
Hazeldonk 6801
Total
Bielefeld
Bielefeld
Bielefeld
Duisburg
Hanau
Dreieich
Magstadt
Kirchheim
Remscheid
Vienna
Vienna
Vienna
Graz
Breda
Breda
Europe – Development Projects
Developments
Location
Rheindeichstraße 155
Total
Duisburg
Egelsbach
Frankenthal
Property was acquired during FY19
1
2 Development property not owned by FPE as at 30 September 2019
P78_BR Europe.indd 81
12/12/19 5:29 PM
82 Frasers Property Limited
Business Review • Europe and Rest of Asia
UNITED
KINGDOM
Chineham Park, Basingstoke • UK
In the UK, we have a substantial
portfolio of investment and
development assets providing
residential, offi ce, industrial and
business park space.
Despite the political uncertainty in
the country, Frasers Property UK
(FPUK) is performing well including
achieving new leasing amounting to
36,000 sqm across the business parks
portfolio. We continue to monitor
the potential outcomes of Brexit and
the risk on the UK portfolio, as well
as to identify possible opportunities.
Residential Properties
During the year, we sold 16 more
apartments in Camberwell on the
Green. The development, comprising
92 apartments located in south-
east London, was completed in
2017. Following the sale of FPUK’s
commercial and freehold interests
in the development, we are now
engaged in a fi nal push to sell the
remaining few apartments in
the property.
Riverside Quarter is our landmark
residential development overlooking
the Thames with 751 units in ten
buildings set in attractive landscaped
gardens. Nine Riverside Quarter, the
fi nal signature building is on
plan and budget for delivery in
2QFY20. The fi nal phase comprises
172 apartments over 14 fl oors,
of which 93 have been sold to an
aff ordable housing association,
a ground fl oor commercial space,
a residents’ lap pool and a gymnasium.
Sales of completed apartments have
progressed in accordance with general
market conditions.
Commercial Properties
Central House, located in
Whitechapel, Central London,
received its decision notice and
section 106 agreement from the
local planning authority in August
2019. The planning permission was
granted to deliver about 15,000 sqm
of commercial space with a strong
focus on the technology sector. The
project is a holistic redevelopment
of the site to feature high-quality
P82_BR UK.indd 82
10/12/19 3:14 PM
contemporary architecture and
landscaping, with delivery slated for
the second quarter of FY22.
Our UK business park portfolio
consists of five business parks
in the southeast of England and
one in Glasgow, Scotland, with a
total of $1.6 billion assets under
management. Of the portfolio’s
total lettable area of approximately
512,000 sqm, we achieved an
occupancy rate of 88.4% and a
WALE of 6.3 years. Strong leasing
performance was also recorded
across our portfolio, with 63 new
lettings and 26 lease renewals
completed during the year. The
properties are home to more than
500 companies.
We continued to unlock more value
from our assets over the year. In
August 2019, we completed the
refurbishment of Maplewood at
Chineham Park, Basingstoke, into a
7,900-sqm modern office building.
The refurbishment of Building 210
at Winnersh Triangle and Building 2
at Watchmoor Park continued, with
completion of both projects expected
in early 2020.
Other asset enhancement initiatives
across the portfolio focused on
placemaking and the adoption of
digital communications technology
were successful in attracting new
tenants and benefitting existing
park occupiers.
Annual Report 2019 83
Resilient and Sustainable Platform
In FY19, we continued to enhance
the resilience and sustainability
of our platform. Through
effective talent acquisition and
resource planning we have added
capabilities and experience to
complement our portfolio. We
have implemented policies and
procedures to ensure best practice
and robust governance is in place
and to enable the business to thrive.
In addition, we have built our
health and safety, sustainability and
placemaking frameworks using design
thinking to increase the value of our
services. This operationally robust and
correctly skilled platform will enable
us to invest in our assets to maximise
occupancy, drive shareholder value
and meet customer requirements in
line with the business plan.
UK – Business Parks
Property
Location
Farnborough Business Park
Farnborough
Winnersh Triangle
Chineham Park
Watchmoor Park
Hillington Park
Maxis Park
Total
Reading
Basingstoke
Camberley
Glasgow
Bracknell
Effective
interest
as at
30 Sep 19
(%)
Book
value
as at
30 Sep 19
($’m)
Net lettable
area
(‘000 sqm)
50.0
100.0
100.0
100.0
100.0
100.0
301.3
590.6
285.5
73.5
227.8
114.0
1,592.7
50.9
135.6
75.4
23.6
207.7
17.9
511.1
Occupancy
FY19 (%)
FY18 (%)
97.4
85.2
81.4
80.6
90.7
98.1
89.5
78.2
80.9
90.0
100.0
100.0
UK – Residential Projects
Projects1
Three Riverside Quarter
Five Riverside Quarter
Seven Riverside Quarter
Camberwell on the Green
Nine Riverside Quarter
Effective
interest
as at
30 Sep 19
(%)
100.0
100.0
100.0
100.0
100.0
No. of
units
% Sold
as at
30 Sep 19
Ave. selling
price
as at
30 Sep 19
(£ psm)
81
149
87
101
172
98.8
89.9
70.1
88.1
54.1
7,962
10,537
8,100
7,044
7,938
Est.
saleable
area
(sqm)2
7,450
9,350
7,950
7,550
Land cost
(£ psm)3
Target
completion
date
1,673
Completed
1,618
Completed
1,292
Completed
548
Completed
13,550
462
2Q FY20
1 All data includes affordable units
2 Excludes retail area
3 Land cost psm is based on total gross floor area (GFA)
P82_BR UK.indd 83
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84 Frasers Property Limited
Business Review • Europe and Rest of Asia
UK – Commercial Projects
Projects
Central House
Eff ective
interest
as at
30 Sep 19
(%)
Est.
saleable
area
(sqm)
Land cost
(£ psm)
Target
completion
date
100.0
15,000
2,185
2Q FY22
Maxis Park, Bracknell • UK
P82_BR UK.indd 84
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Annual Report 2019 85
Annual Report 2019 85
CHINA
Gemdale MegaCity, Shanghai • China
Despite headwinds from US-China
trade policy uncertainty and fi nancial
de-leveraging, China remains an
important market for the Group.
China’s productivity and household
income growth outlook is still one
of the fastest in the world due to the
competitiveness of the economy and
the ample potential for fi scal policy
stimulus.
Leveraging these favourable
fundamentals, Frasers Property China
(FPC) has built 11,300 homes to date,
with another three projects under
development in Suzhou, Shanghai
and Chengdu. In FY19, we were
successful in selling 697 residential
units, 87,253 sqm of industrial offi ce
and retail space across all three
projects. As at September 2019, our
unrecognised presold development
revenue in China stood at RMB2.0
billion ($378 million).
Ongoing Developments
The Baitang One development
in Suzhou sold all its remaining
140 high-rise residential units this
year, prior to the government’s
implementation of new cooling
measures, for a total value of
RMB692 million ($133.8 million).
Phase 3C2 was launched for sale
in June 2019. In the meantime,
construction for the last
development phase continued and
the structure was topped out on
31 July 2019. As at 30 September
2019, only 32 villas and 10,486 sqm
of retail space remained unsold. We
will channel our eff orts to selling
these units in 2020/2021.
Following a two-year major
revamp, the retail space at Suzhou
Baiting One was also successfully
transformed and revitalised with an
optimised tenant mix, doubling the
occupancy to 98% and achieving a
gross rental yield of 6%.
During the fi nancial year,
15,519 sqm of industrial, offi ce and
retail space for plots 3A and 4B at
Chengdu Industrial Hub were sold
at an average price of 10% above
valuation despite the high offi ce
vacancy rate of 20% in Chengdu. We
were also successful in leasing out
2,309 sqm of offi ce and warehouse
showrooms notwithstanding stiff
competition and the oversupply
in the offi ce market. In July 2019,
we signed a sale and purchase
agreement with Wuhou Healthcare
Investment & Development Co.
Ltd., for the en-bloc sale of Plot 3B,
comprising 68,981 sqm of space, at
a contract sum of RMB715 million
($138.3 million). In total, we sold
84,500 sqm of offi ce and retail space
in FY19.
P85_BR China.indd 85
10/12/19 3:15 PM
86 Frasers Property Limited
Business Review • Europe and Rest of Asia
In Shanghai, we sold 557 residential
units and 2,753 sqm of retail space at
Gemdale MegaCity, with 90% of 320
Phase 5H’s residential units snapped
up within weeks after the sales
launch. The favourable sales were
achieved despite government cooling
measures. We also successfully
converted the low-yield retail units
into 148 long-term lease apartments,
achieving 100% occupancy rate with
gross rental yield of 5% within four
months of operations.
New Acquisition
In September 2019, we expanded our
residential development foothold
through an investment into a mixed-
use development project located in
Shanghai’s prime Xuhui district. The
project comprises long-term lease
apartments, with some supporting
retail amenities and social housing.
We expect to launch sales in the fi rst
half of 2020.
This acquisition marks our fi rst
land purchase in China in over a
decade. We will continue to explore
growth opportunities following this
successful acquisition.
Industry Awards
Our projects in China received
numerous accolades during the
year. Baitang One’s Phase 3C1 was
conferred the Trophy of Gusu for
Construction Excellence by the
Suzhou Industrial Park Construction
Bureau. In addition, the Suzhou
Municipal Administration Bureau
awarded Baitang One the Paradise
Cup for creating a Model Housing
Community for Suzhou Urban
Estate Management. Separately,
Chengdu Logistics Hub clinched
the Fu Rong Cup for being a Quality
Project in Chengdu and was awarded
Specialised (Characteristic) Building
by the Chengdu Building Grade
Rating Committee.
Chengdu Logistics Hub • China
P85_BR China.indd 86
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Annual Report 2019 87
Eff ective
interest
as at
30 Sep 19
(%)
100.0
100.0
100.0
80.0
80.0
80.0
45.2
45.2
45.2
45.2
45.2
45.2
45.2
45.2
45.2
45.2
45.2
China – Development Projects
Projects
Suzhou
Baitang One (P2B)
Baitang One (P3B)
Baitang One (P3C2)
Chengdu
Chengdu Logistics Hub (P1)
Chengdu Logistics Hub (P2)
Chengdu Logistics Hub (P4)
Shanghai
Gemdale MegaCity (P2A)2
Gemdale MegaCity (P2A-retail)2
Gemdale MegaCity (P3A-retail)2
Gemdale MegaCity (P3B-retail)2
Gemdale MegaCity (P3C-retail)2
Gemdale MegaCity (P4F)2
Gemdale MegaCity (P4F-retail)2
Gemdale MegaCity (P4D)2
Gemdale MegaCity (P4D-retail)2
Gemdale MegaCity (P5H)2
Gemdale MegaCity (P5G)2
China – Industrial Portfolio
Properties
%
Sold
as at
30 Sep 19
%
Completion
as at
30 Sep 19
No. of
units
Ave.
selling
price
as at 30
Sep 19
(RMB psm)
Est.
saleable
area ('000
sqm)
Land cost1
(RMB psm)
Target
completion
date
360
380
380
163
163
358
1,065
22
24
21
71
616
3
804
11
320
199
100.0
91.6
100.0
89.0
100.0
92.5
100.0
54.5
100.0
95.2
46.5
100.0
0.0
99.9
45.5
96.9
95.5
100.0
15,718
100.0
35,570
100.0
34,879
100.0
100.0
100.0
5,426
8,469
8,594
73
58
50
161
61
164
2,554 Completed
2,562 Completed
2,559 Completed
298 Completed
280 Completed
338 Completed
100.0
16,995
136
1,441 Completed
100.0
20,246
100.0
56,700
100.0
56,583
100.0
41,532
100.0
45,632
100.0
Nil3
100.0
41,034
100.0
52,263
43.0
30.0
40,533
41,053
4
1
1
8
73
0.2
82
1
36
22
1,441 Completed
1,415 Completed
1,415 Completed
1,415 Completed
1,918 Completed
1,918 Completed
1,920 Completed
1,920 Completed
1,920
4Q FY20
1,920
4Q FY21
Eff ective
interest
as at
30 Sep 19
(%)
Book value
as at
30 Sep 19
($’m)
Net
lettable
area
(sqm)
Occupancy
FY19 (%)
FY18 (%)
Chengdu Logistics Park Phase 1 ambient warehouse
(classifi ed as held for sale)
80.0
39.1
47,145
100.0
100.0
China – Land Bank
Sites
Gemdale MegaCity (P6)2
Shanghai Zhukun Property, Xuhui4
Residential sub-total
Gemdale MegaCity (P4E)
Chengdu Logistic Park (P2A)
Commercial sub-total
TOTAL
Location
Shanghai
Shanghai
Shanghai
Chengdu
Eff ective
interest
as at
30 Sep 19
(%)
45.2
8.8
45.2
80.0
Est. no.
of units
Est.
saleable area
('000 sqm)
Land cost1
(RMB psm)
154
485
639
101
179
280
919
2,227
49,203
968
303
26
46
72
15
91
106
178
Land cost includes land use tax and is calculated based on GFA
1
2 Gemdale MegaCity was accounted for as an associate
3
4 Xuhui was accounted for as a joint venture. The development scheme includes residential, long term lease apartment and commercial space of 1,500 sqm; it
Phase 4F retail was only launched in June 2019 and there was no sales and purchase agreement signed then
excludes social housing
P85_BR China.indd 87
10/12/19 3:15 PM
88 Frasers Property Limited
Business Review • Europe and Rest of Asia
THAILAND
Our investment in Thailand is in line
with the Group’s strategy to grow
our income in our existing markets
and from recurring sources. We
believe in the growth prospects of
Thailand, especially in the Eastern
Economic Corridor which presents
opportunities in the development
of infrastructure, business clusters,
industrial clusters, innovation hubs,
tourist attractions and new cities.
In Thailand, we hold an 80.8% deemed
stake in Frasers Property (Thailand)
Public Company Limited (FPT, formerly
known as TICON Industrial Connection
Public Company Limited), a listed
company and one of the largest
industrial and logistics real estate
developers in Thailand, owning and
managing factories and warehouses,
with a net lettable space of over
2.7 million sqm. The portfolio
occupancy increased from 74% to 82%.
Linfox facility, Wangnoi • Thailand
In January 2019, we rebranded FPT
from TICON Industrial Connection
Public Company Limited, positioning
the company to leverage our strong
global network, for growth in
Thailand and selected Southeast
Asian markets.
In May 2019, FPT commenced the
fi rst phase of a hyperscale data centre
of approximately 60,000 sqm in
Bangkok. It also has pre-committed
built-to-suit developments of
appromixately 135,000 sqm from
tenants including HAVI Logistics
(Thailand) Company Limited and
Central Retail Corporation.
Golden Land Property Development
Plc (GOLD)
FPT went on to complete a voluntary
tender off er and successfully
acquired a 94.5% stake in GOLD,
transforming it into an integrated
real-estate platform with
complementary real estate services,
spanning industrial and logistics,
residential, commercial, hospitality
and other related properties.
GOLD has a strong presence in the
country, especially in the residential
segment in Bangkok. It has 53
active residential projects, with
20 new residential projects worth
approximately THB20.7 billion
($0.9 billion) launched during the
period between October 2018 and
September 2019. It also developed
mixed-use and commercial properties
in Bangkok’s CBD, including Samyan
Mitrtown, FYI Center and Sathorn
Square. On the hospitality front,
GOLD owns high-quality assets,
such as Mayfair Marriott Executive
Apartments, The Ascott Sathorn and
Modena by Fraser Bangkok.
Golden Ventures Leasehold Real
Estate Investment Trust (GVREIT)
In addition, GOLD is the property
manager and sponsor of GVREIT, a
commerical REIT listed on the Stock
Exchange of Thailand, with total
assets of approximately
THB11.3 billion ($0.5 billion) as at
30 September 2019. GOLD has a
22.6% stake in GVREIT.
P88_BR Thailand.indd 88
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Business Review • Europe and Rest of Asia
Annual Report 2019 89
Samyan Mitrtown, Bangkok • Thailand
Subsequent to the voluntary tender
off er, GOLD received shareholders’
approval at an extraordinary general
meeting in November 2019 to delist
GOLD shares. We aim to complete
the transaction in March 2020.
Strategic Partnerships
FPT has been forging synergistic
partnerships to deepen its
knowledge and deliver real-estate
solutions aligned with customers’
requirements. In January 2019, FPT
established a 75:25 joint venture with
Sahathai Terminal Public Company
Limited to build a logistics park and
distribution centre of approximately
35,000 sqm at the Bangkok river port.
In April 2019, FPT entered into a
51:49 joint venture with PBA Group,
which aims to add value to customer
operational effi ciencies through
the use of robotics and automation
solutions such as specialised material
handling, automated forklifts and
collaborative robotics.
That same month, FPT formed a
51:49 joint venture company with
Mitsui Fudosan to develop two
large-scale industrial and logistics
parks of approximately 265,000 sqm
in Bangpakong and Wangnoi. These
developments aim to cater to
customers’ growing supply-chain and
logistics requirements in the northern
and northeastern markets as well as
the Eastern Economic Corridor.
Other Interests
The Group owns a 19.8% stake in One
Bangkok, a mixed-use development
project. Located in central Bangkok
at the intersection of Wireless Road,
Rama IV Road and Sathorn Road, the
project includes retail components,
offi ce towers, residences, hotels
and serviced apartments with an
expected total gross fl oor area of
approximately 1.8 million sqm.
Frasers Property Thailand Industrial
Freehold & Leasehold REIT (FTREIT)
FPT is the manager and sponsor
of FTREIT, the largest industrial
REIT listed on the Stock Exchange
of Thailand, with total assets of
approximately THB38.5 billion
($1.7 billion) as at 30 September 2019.
It also has a 23.4% stake in FTREIT.
The Group serves as the development
manager for the entire project. Piling
and D-wall installation were fully
completed during the year, with sub-
structure works progressing as planned.
P88_BR Thailand.indd 89
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VIETNAM
Artist’s impression of Q2 Thao Dien, Ho Chi Minh City • Vietnam
Vietnam is a strong growth market
for the Group. Its large, relatively
young and well-educated working
population as well as on-going
economic reforms have made it one
of the top destinations globally for
foreign direct investments.
In Vietnam, we enjoy strong market
recognition of the Frasers Property
brand due to the combined eff orts of
Frasers Property Vietnam (FPV) and
Frasers Hospitality. By leveraging
this brand awareness and the core
capabilities across the Group, we
seek to capitalise on the country’s
growth prospects by identifying the
right investment opportunities in
diff erent property segments to grow
our business.
Me Linh Point
Since 1995, FPV has been holding
a 75% stake in Me Linh Point, a
21-storey retail and offi ce building in
District 1 of Ho Chi Minh City’s CBD. In
FY19, Me Linh Point’s rental renewals
resulted in a 7.4% increase in rental
revenue despite a lower occupancy
rate from the year before.
Q2 Thao Dien
We also hold a 70% stake, since 2017,
in G Homes House Development
Joint Stock Company, which is
developing the Q2 Thao Dien
residential-cum-commercial project.
When completed, Q2 Thao Dien will
feature 333 apartments, 13 shop
lots, six villas, 12 townhouses and a
commercial tower built on a
7,956 sqm prime site in District 2 of
Ho Chi Minh City.
As at 30 September 2019, we sold
332 units out of 333 launched
high-rise apartments and all shop
lots of the project, yielding a total
unrecognised revenue of
VND2,429 billion ($144 million). Due
to the keen interest from local and
foreign buyers and the limited supply
of residential units in the city, we
were able to raise the average selling
price for the high-rise apartments by
more than 15% in the latest launch in
June 2019, as compared to our fi rst
launch in January 2018. The launch
for the low-rise residential units,
which is expected to generate even
stronger demand, is slated for the
fi rst quarter of FY20.
P90_BR Vietnam.indd 90
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Artist’s impression of Q2 Thao Dien, Ho Chi Minh City • Vietnam
Vietnam – Offi ce Portfolio
Property
Ho Chi Minh City
Me Linh Point
Vietnam – Development Projects
Eff ective
interest
as at
30 Sep 19
Book value
as at
30 Sep 19
Net lettable
area
Occupancy
(%)
($'m)
(sqm)
FY19 (%)
FY18 (%)
75.0
66.6
17,489
97.0
100.0
Projects
Ho Chi Minh City
Q2 Thao Dien
Eff ective
interest
as at
30 Sep 19
(%)
No. of
units
launched
% Sold
as at
30 Sep 19
%
Completion
as at
30 Sep 19
Ave. selling
Price
as at
30 Sep 19
($ psm)
Est.
saleable area
('000 sqm)
Target
completion
date
70.0
346
99.7
21.8
4,711
30.9
2Q FY21
P90_BR Vietnam.indd 91
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92 Frasers Property Limited
Investor
Relations
Overview
Frasers Property Limited’s (FPL) investor relations (IR)
team is focused on proactively engaging the investing
community and the media to generate awareness and
understanding of FPL’s business model, competitive
strengths, growth strategy, and investment merits;
as well as to garner feedback for consideration. An IR
policy is in place to promote regular, effective and fair
communications.
Committed to Best Practices in Investor Relations and
Corporate Governance
This year, FPL won the Bronze award for Best Managed
Board, in the category for listed companies with market
capitalisation of $1 billion and above, at the Singapore
Corporate Awards. The award marks the third consecutive
year that FPL has been recognised at this annual awards
event, which seeks to recognise exemplary corporate
governance practices of listed companies in Singapore.
In addition, FPL was recognised at the IR Magazine Awards
– Southeast Asia 2019 in the Best Financial Reporting
category. Our award wins serve as strong motivation
as we strive towards further excellence in corporate
governance and investor relations.
For enquiries on FPL, please contact:
Ms Gerry Wong
Head, Group Investor Relations
Tel: (65) 6276 4882
Email: ir@frasersproperty.com
Proactive and Regular Engagement
Members of FPL’s leadership team and IR team regularly
engage our stakeholders through multiple platforms.
These include one-on-one meetings, results calls and
briefings, post-results luncheons, property tours, non-
deal roadshows (NDRs), and investor conferences. In
addition, FPL’s corporate website (frasersproperty.com)
serves as a resource centre from which the public and
investing community can access information about FPL.
Over the course of the financial year, we participated
in NDRs and investor conferences in Hong Kong, Kuala
Lumpur, London, Melbourne, Singapore and Sydney.
We attended 132 meetings with research analysts and
institutional investors to facilitate understanding of our
developments and growth plans.
As part of our ongoing regular updates on our business,
we announce our financial performance on SGXNET every
quarter, along with a press release and presentation.
Post-results, we host quarterly conference calls, during
which members of FPL’s leadership team present
highlights of our financial results and answer questions
posed by research analysts and institutional investors.
In addition, we host in-person briefings of our half-year
and full-year results, which are attended by research
analysts, institutional investors, representatives from our
principal bankers, and the media. A concurrent dial-in
facility is offered for those who wish to attend the briefing
but are unable to do so in person.
All the materials related to FPL’s quarterly
announcements of our financial performance, FPL’s
factsheet, as well as webcasts of the FY19 half-year and
full-year results presentations, are publicly available via
FPL’s corporate website. In addition, FPL’s corporate
website has a dedicated investor relations section
containing stock information and interactive stock
analysis tools, as well as a newsroom section with links to
all announcements made by FPL on SGXNET and all press
releases issued by our businesses.
P92_Investor Relations.indd 92
10/12/19 3:19 PM
FPL’s Closing Price and Trading Volume in FY19
Annual Report 2019 93
FPL SP Equity - Last Price
High on 15/04/19
Average
Low on 25/10/18
1.75
1.92
1.75
1.57
FPL SP Equity - Last Volume
High on 20/09/19
Average
Low on 07/11/18
0.60M
1.50M
0.23M
0.02M
2.00
1.90
1.80
1.70
1.60
1.50
2M
1M
0
Oct 18 Nov 18 Dec 18
Jan 19
Feb 19 Mar 19
Apr 19 May 19
Jun 19
Jul 19
Aug 19
Sep 19
Brokerages Covering FPL
(As of 30 September 2019)
FY19 Investor Relations Calendar
• Bank of America-Merrill Lynch
• CGS-CIMB Research
• CLSA
• Credit Suisse
• DBS Bank
•
JP Morgan
November 2018
9
• Full-year FY18 results
briefing
• Post-results investor
meetings in Singapore
12-13 • Investor meetings in Hong
Kong
January 2019
8
29
• DBS Pulse of Asia Conference
• AGM
February 2019
13
• 1QFY19 Earnings Call
• Post-results investor
meetings in Singapore
April 2019
15
• Investor meetings in Hong
Kong
May 2019
3
• 1HFY19 results briefing
• Post-results investor
16
24
meetings in Singapore
• Property tour of Frasers
Tower for research analysts
• Property tour of Frasers
Tower for institutional
investors as part of dbAccess
Asia Conference
June 2019
19-20 • Investor meetings in
Australia
August 2019
13
• 9MFY19 Earnings Call
• Post-results investor
meetings in Singapore
September 2019
4
• Investor meetings in
Kuala Lumpur
20
• Investor meetings in London
P92_Investor Relations.indd 93
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94 Frasers Property Limited
Treasury
Highlights
The Group manages our financial structure prudently to
ensure that we will be able to access adequate financing
and capital at favourable terms. Our multi-national
businesses which operate across five asset classes -
residential, hospitality, retail, commercial and business
parks, industrial and logistics properties, together with
the asset management of the three REITs listed on the
Singapore Exchange Securities Trading Limited (SGX-ST),
Frasers Centrepoint Trust (FCT), Frasers Commercial Trust
(FCOT) and Frasers Logistics & Industrial Trust (FLT), as
well as the stapled trust, listed on the SGX-ST, Frasers
Hospitality Trust (FHT) generate cash flows for the Group.
Management monitors the Group’s cash flow position and
projections, debt maturity profile, funding cost, interest
rate and foreign exchange exposures and overall liquidity
position on a continuous basis. To ensure that we have
adequate overall liquidity to finance our operations and
investment requirements, we maintain available banking
facilities with a number of banks globally.
In FY19, we improved our capital position (net-worth
increased by 9% to $16,091 million). Net group
borrowings had increased from $12.3 billion to
$13.8 billion mainly due to consolidation of PGIM
Real Estate AsiaRetail Fund and Golden Land Property
Development Plc.
Source of funding
Besides cash flow from our businesses, we rely on
the debt capital markets, equity capital markets and
syndicated and bilateral banking facilities for our funding.
As at 30 September 2019, the Group had about
$2.7 billion in unutilised banking facilities that may be
used to meet our funding requirements.
We maintain active relationships with a strong network of
banking partners globally. Our principal bankers include
Australia and New Zealand Banking Group Limited,
Bangkok Bank Public Company Limited, Bank of China
Limited, DBS Bank Ltd., Malayan Banking Berhad, Mizuho
Bank, Limited, Oversea-Chinese Banking Corporation
Limited, Standard Chartered Bank, Sumitomo Mitsui
Banking Corporation and United Overseas Bank Limited.
We continue to adopt the philosophy of engaging the
banks as our core business partners and receive very
strong support from our relationship banks across all
segments of the Group’s businesses. All the Group’s
banking relationships are maintained by Group Treasury
in Singapore.
Green Financing
In FY19, we raised a $785 million five-year green term
loan for Northpoint City South Wing and a A$600 million
five-year green syndicated term loan, both were used
for refinancing of existing loans. We also raised a
A$750 million loan comprising of a A$250 million
five-year tranche and a A$500 million five-year green
loan tranche to refinance existing loans in relation to
Alexandra Point and 51 Cuppage Road. FLT raised a
A$170 million five-year green term loan to refinance
existing loan due during the year. As of 30 September
2019, 18% of the Group’s gross debt of $18.6 billion¹
comprises green loans.
Debt capital markets
We have various Medium Term Notes (MTN) programmes
in place to tap the debt capital market. Frasers Property
Treasury Pte Ltd has a $3 billion MTN (issued:
$1,456 million) and $5 billion Euro Medium Term Notes
(EMTN) (issued: $1,750 million) programmes.
In FY19, Frasers Property Treasury raised $600 million
4.98% perpetual securities in tranches of $400 million (on
11 April 2019) and $200 million (on 30 July 2019) to repay
an existing perpetual securities.
Our Thai subsidiaries, Frasers Property Holdings (Thailand)
Co. Ltd. has a THB25 billion (issued: THB11 billion)
debenture programme; Frasers Property Thailand has
a THB35 billion (issued: THB27.6 billion) and GOLD
has a THB13 billion (issued: THB10 billion) debenture
programme respectively.
In FY19, Frasers Property Thailand tapped the bond market
in Thailand with the issuance of THB15 billion debentures
with tenors ranging from two years to ten years.
Our sponsored REITs, FCT, FCOT and FLT, as well as our
stapled trust FHT, each have their respective MTN
programmes: FCT: $1 billion MTN (issued: $310 million)
and $3 billion EMTN (issued: nil); FCOT: $1 billion MTN
(issued: $390 million); FLT: $1 billion EMTN (issued: nil) and
FHT: $1 billion EMTN (issued: $340 million).
1
Includes debt related to Frasers Tower, which is not included in the consolidated financial statements. Total gross debt in the consolidated financial
statements is S$17.4 billion
P94_Treasury Highlights.indd 94
12/12/19 5:52 PM
Annual Report 2019 95
Foreign exchange risks and derivatives
We have exposure to foreign exchange risks arising from
normal development and investment activities. Where
exposures are certain, it is the Group’s policy to hedge
these risks as they arise. We use foreign currency forward
contracts and certain currency derivatives to manage
these foreign exchange risks. In order to have a natural
hedge, where possible, we will fund foreign currency
assets with debt in the same currency.
We do not engage in trading of foreign exchange and
foreign exchange derivatives.
We use foreign exchange contracts and derivatives
solely for hedging actual underlying foreign exchange
requirements in accordance with hedging limits set
by the Audit Committee and FPL’s Board of Directors
under the Group’s Treasury Policy. These policies are
reviewed regularly by the Audit Committee and Executive
Committee to ensure that our policies and guidelines
are in line with our foreign exchange risk management
objectives.
Our foreign exchange contracts and derivatives and the
mark-to-market values as at 30 September 2019 are
disclosed in the financial statements in Note 21.
Maturity Profile $’m
3,491
3,800
2,947
2,733
2,418
2,007
<1 yr
1 to 2 yrs 2 to 3 yrs 3 to 4 yrs 4 to 5 yrs
> 5 yrs
Interest rate profile and derivatives
We manage our interest cost by maintaining a prudent
mix of fixed and floating rate borrowings. On a portfolio
basis, 70% of the Group’s borrowings are in fixed rates
(including floating rate borrowings that have been fixed
with interest rate swaps). The average tenor of the loans
is 3.0 years as at 30 September 2019 (FY18: 3.3 years).
The floating rate loan portfolio allows us to repay
debt quickly from divestments of assets and sales of
development property.
In managing the interest rate profile, we take into account
the interest rate outlook, expected cash flow generated
from our business operations, holding period of long-term
investments and any acquisition and divestment plans.
We make use of interest rate derivatives (example interest
rate swaps) for the purpose of hedging interest rate risks
and managing our portfolio of fixed and floating rate
borrowings. We do not engage in the trading of interest
rate derivatives. Our total interest rate derivatives and
the mark-to-market values as at 30 September 2019 are
disclosed in the financial statements in Note 21.
Gearing and interest cover
We aim to keep our net gearing to equity ratio between
80% and 100% in the medium term. As at 30 September
2019, this ratio was 85.9%. Net interest expense for the
year amounted to $369 million, which excludes
$46 million that was capitalised as cost of development
properties held for sale and $6 million that was capitalised
as cost of investment properties under construction. The
net interest² cover³ was at four times.
2 Net interest in the profit statement excluding mark to market adjustments on interest rate derivatives and capitalised interest
3 Net interest cover: Profit before interest, fair value change, taxation and exceptional items/net interest expense
P94_Treasury Highlights.indd 95
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96 Frasers Property Limited
Sustainability
Report
Contents
97
98
99
100
101
106
116
122
134
About this Report
Board Statement
Our Sustainability Framework
Sustainability Value Chain
Managing Sustainability
Acting Progressively
Consuming Responsibly
Focusing on People
GRI Content Index
Glossary
For ease of reading, this glossary provides defi nitions of acronyms that are frequently used throughout this report
Frasers Property entities
Other acronyms
FCT
FCOT
FHT
FLT
FPA
FPC
FPE
FPHT
FPL
FPS
FPT
FPUK
FPV
: Frasers Centrepoint Trust
: Frasers Commercial Trust
: Frasers Hospitality Trust
: Frasers Logistics and Industrial Trust
: Frasers Property Australia
: Frasers Property China
: Frasers Property Europe
: Frasers Property Holdings (Thailand)
: Frasers Property Limited
: Frasers Property Singapore
: Frasers Property Thailand
: Frasers Property United Kingdom
: Frasers Property Vietnam
AS/NZS 4801 : Australia/New Zealand Standard for Occupational
BCA
BREEAM
DGNB
EDGE
EHS
EHSMS
ESG
GBCA
GHG
GRESB
GRI
ISO 14001
Health & Safety
: Building and Construction Authority, Singapore
: Building Research Establishment Environmental Assessment
Method
: German Sustainable Building Council
: Excellence in Design for Greater Effi ciencies
: Environment, Health and Safety
: Environmental, Health and Safety Management System
: Environment, Social and Governance
: Green Building Council of Australia
: Greenhouse Gas
: Global Real Estate Sustainability Benchmark
: Global Reporting Initiative
: International Organization for Standardization
ISO 18001
: International Organization for Standardization
(Environmental Management System)
ISO 50001
: International Organization for Standardization
(Occupational Health and Safety Management System)
(Energy Management System)
: Light Emitting Diode
: Leadership in Energy and Environmental Design
: National Australian Built Environment Rating System
: Non-governmental organisations
: Offi ce of the Federal Safety Commissioner
: Sustainable Development Goals
LED
LEED
NABERS
NGOs
OFSC
SDG
SGBC : Singapore Green Building Council
SSC
SWC
TCFD
UN
UNFCCC
UNGC
: Sustainability Steering Committee
: Sustainability Working Committee
: Task Force on Climate-related Financial Disclosures
: United Nations
: United Nations Framework Convention on Climate Change
: United Nations Global Compact
P96_Sustainability Report.indd 96
10/12/19 3:23 PM
About this
Report
Annual Report 2019 97
This is our fifth Sustainability Report summarising the
sustainability practices and performance of Frasers Property
Limited (FPL, and together with its subsidiaries, the Group) for
the period of 1 October 2018 to 30 September 2019 (FY19).
This report has been prepared in accordance with the sustainability
reporting requirements of the Singapore Exchange Securities Trading
Limited (SGX-ST) Listing Manual (Rules 711A and 711B), and the Global
Reporting Initiative (GRI) Standards: Core option. We have also included
consideration of the GRI G4 Construction and Real Estate Sector
Disclosures in the preparation of this report.
Report Scope
We have included activities and performance of our key business units1
and our listed trusts2 in this report. The report covers our significant
locations of operations which are Singapore, Australia, the United
Kingdom (UK) and China. Specific sustainability initiatives in Thailand
and Europe are also shared in this report.
Data disclosed covers the above scope, unless otherwise stated, for
assets that we own and/or manage, over which we have operational
control. We have also included health and safety data of our principal
contractors’ employees working at our development sites in Singapore
and Australia.
Feedback
As we seek to continuously improve our sustainability
performance, your feedback is important to us. Please
write to:
Dr Pang Chin Hong,
Vice President, Group Sustainability
Frasers Property Limited
Email: sustainability@frasersproperty.com
1
2
Frasers Property Singapore (FPS), Frasers Hospitality (FH), Frasers Property Australia (FPA),
Frasers Property China (FPC), Frasers Property Thailand (FPT), Frasers Property UK (FPUK),
Frasers Property Europe (FPE), Frasers Centrepoint Asset Management Ltd,
Frasers Commercial Asset Management Ltd, Frasers Hospitality Asset Management Pte.
Ltd, Frasers Logistics & Industrial Asset Management Pte Ltd.
Frasers Centrepoint Trust (FCT), Frasers Commercial Trust (FCOT), Frasers Logistics &
Industrial Trust (FLT) and Frasers Hospitality Trust (FHT)
P97_About this Report.indd 97
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98 Frasers Property Limited
Sustainability Report
Board
Statement
Dear Fellow Stakeholders,
At Frasers Property Limited (FPL, and together with its subsidiaries,
the Group), we believe we are in the best business there is: creating
communities and the experiences that matter to the members of the
communities we interact with. We recognise this to be a privilege, one that
comes with responsibilities.
The most important of these responsibilities is that we manage the company
to ensure that FPL will be here for the long term, continuing to benefi t the
people and communities across the markets we operate in, while taking care
of the environment.
We aim to achieve sustainable value for our business and our stakeholders.
For us to be an enduring and progressive organisation, it is important to
incorporate sustainability into our strategy and operations. In fact, for us,
being a good corporate citizen is essential to creating long-term value for
our investors.
Since FY18, our Sustainability Framework has been fi rmly in place, setting
out our sustainability priorities as a Group through to 2030. One of our
priorities is to move towards carbon neutrality by proactively reducing our
carbon emissions. In 2019, we deepened FPL’s commitment to sustainable
development by mapping our Sustainability Framework and progress
towards the Sustainable Development Goals (SDGs) set out by the United
Nations (UN). We have started to voluntarily report some of the climate-
related fi nancial disclosures in four aspects recommended by the Task Force
on Climate-related Financial Disclosures (TCFD) and will embark on more
detailed analysis in the coming year.
Today, fulfi lling our mission in sustainability is more complex and
challenging than ever before because the role of business in society keeps
evolving. This report details our commitment to being a responsible and
sustainable enterprise, and provides a summary of our eff orts and their
positive eff ects.
We thank you for your interest in, and support of, FPL and our work.
We know there is always more to be done, and we are focused on making
progressive eff orts to operate to the highest standards in all of these areas.
We look forward to sharing our sustainability progress with you in the years
to come.
Board of Directors
Frasers Property Limited
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Annual Report 2019 99
Our Sustainability
Framework
Our Sustainability Framework demonstrates our commitment to all stakeholders that sustainability is a key agenda at FPL.
Setting out our sustainability priorities for the Group through 2030, the Framework is driven by three pillars, namely Acting
Progressively, Consuming Responsibly and Focusing on People. These three pillars form a multi-disciplinary approach that
recognises 13 corresponding environment, social and governance (ESG) focus areas. Our key business units and listed trusts
continuously review their practices, policies, performance and targets in relation to the ESG focus areas identifi ed in the
Framework.
In FY19, we established a Global Sustainability Taskforce to drive the integration of sustainability into our operations across
all our business units and listed trusts based on the Framework. Sustainability workshops were organised internally, using
design thinking tools, to establish sustainability action plans and targets in each business unit.
Pillars
Acting Progressively
Consuming Responsibly
Focusing on People
Focus Areas
Innovation
Fostering an innovation
culture that creates
value and strengthens
our competitive edge
Materials & Supply Chain
Achieving the sustainable
management and effi cient use of
material along the supply chain
Community Connectedness
Considering social value
principles for communities
Resilient Properties
Strengthening our resilience
and climate adaptive capacity
Biodiversity
Enhancing the environment
and ecosystem through
our developments
Risk-Based Management
Comprehensive assessment
to address environmental,
health and safety risks
Energy & Carbon
Increasing substantially energy
effi ciency and renewable
energy used
Responsible Investment
Incorporating social,
environment and governance
criteria in the evaluation process
Waste
Reducing substantially waste
generation through prevention,
reduction, recycling and reuse
Water
Increasing substantially water
effi ciency and the recycling and
safe reuse of water discharged
Health & Well-being
Ensuring healthy and
balanced work and
community environments
Diversity & Inclusion
Empowering and promoting
the social inclusion of all,
irrespective of age, sex,
disability, race, ethnicity,
origin, religion or economic
or other status
Skills & Leadership
Developing skills and leadership
programmes that support
productive activities, creativity
and innovation to deliver
high-value products and services
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100 Frasers Property Limited
Sustainability Report
Sustainability
Value Chain
As an integrated real estate company, our sustainability impacts extend across the value chain of activities from acquisitions,
design and construction, to property and asset management, sales and transactions. Hence, we endeavour to embed
sustainability elements in every stage of our value chain, guided by our Sustainability Framework. We strive to improve
our sustainability processes and performance while identifying opportunities to provide better services and offerings for
stakeholders.
Acquisitions &
Business
Development
>200
projects and properties
in Singapore and overseas
certified to international
green building standards
FIRST
• LEED-Neighbourhood
Development Platinum
development in Thailand
• Passive House pilot
development in Australia
• Retail mall targeting
certification under Living
Building Challenge in
Australia
Design &
Construction
$3.4
billion
of green loans, accounting
for 18% of our Group's
gross borrowings
Strong
customer satisfaction
across surveys of our
home buyers, tenants
and hospitality guests
Developing Capabilities
• Trained 83 staff Group-wide in
Design Thinking
• Embraced diversity with 48%
of total employees and 37% of
Senior Management being women
• Achieved average 36 training
hours per employee
Engaging Community
• $1.0 million and 7,600 volunteer
hours contributed across 480
community investment activities
>85%
reduction in severity rate
for development projects
in Singapore and Australia
Inclusive Spaces
Innovative
solutioning to improve
accessibility at our retail
malls in Singapore via first-
ever hackathon challenge
Sales &
Transactions
Renewable
Energy
sold to our home-occupiers
and tenants in Australia
Phasing out
single-use plastics and going
paperless progressively at
our hospitality assets under
management
Property &
Asset
Management
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Annual Report 2019 101
Managing
Sustainability
We believe that driving a sustainability agenda is as
important as driving our business strategy and operational
agenda. We have established a clear defi nition of
sustainability and mapped out the important ESG aspects
for the Group. This foundation has enabled us to set up a
governance structure that is appropriate for driving the
sustainability agenda across all our business units.
Sustainability Governance
Our sustainability governance centres around the
Sustainability Steering Committee (SSC) comprising
senior management. Chaired by our Group Chief Executive
Offi cer, Panote Sirivadhanabhakdi, the Committee
meets regularly to drive sustainability strategy, review
sustainability performance and approve action plans to
improve sustainability practice. It is supported by the
Sustainability Working Committee (SWC), comprising
members from the senior and middle management in
various business units and corporate functions. The SWC
monitors sustainability performance, and communicates
the progress through our annual Sustainability Report.
To support our growing aspiration in advancing
sustainability, we now have over 20 sustainability
professionals across our key operations in Singapore,
Australia, Thailand and the UK. Having one of the
largest sustainability teams in the real estate industry
demonstrates our strong commitment to integrating
sustainability into our business. To harmonise eff orts
across the Group, we assembled a Global Sustainability
Taskforce in FY19. All business units were represented
and supported by our sustainability professionals
from Singapore, Australia and Thailand. The aim of the
Taskforce is to help all business units establish their
sustainability action plans by leveraging the sustainability
knowledge of more experienced colleagues.
Green Awards
Our achievement in winning a number of industry awards is
further testimony to our success in acting progressively to
build a sustainable and resilient portfolio.
In Singapore, FPL received the prestigious Singapore
Environmental Achievement Award 2019 (Services Category
- Merit) from the Singapore Environment Council. This award
recognised our contribution to environmental sustainability
eff orts in green building developments in Singapore, Thailand
and Australia, and in engaging stakeholders globally to create
environmental awareness. The award further acknowledged
our eff orts in championing green fi nancing.
Singapore Environmental Achievement Award 2019
(Services Category – Merit)
At the GRESB 2019 global
rankings, Frasers Property
Australia (FPA) was crowned
Overall Global Sector Leader for
Developers, ranked fi rst among
41 developers. FPA was also
named Global Sector Leader and
Overall Regional Sector Leader
in Asia-Pacifi c for the Diversifi ed – Offi ce/Industrial category.
At the same time, Frasers Logistics & Industrial Trust
(FLT) was named Global Sector Leader, Overall Regional
Sector Leader in Asia-Pacifi c, and Regional Sector Leader
in Australia for the Industrial/Distribution Warehouse
category.
This year, our three other REITs – Frasers Centrepoint
Trust (FCT), Frasers Commercial Trust (FCOT) and Frasers
Hospitality Trust (FHT) – participated in the GRESB
assessment for the fi rst time. We intend to leverage
the insights from these results to help us capitalise on
sustainability-related opportunities and improve our ESG
performance.
In addition, Dr Pang Chin
Hong, Vice President, Group
Sustainability, was conferred
the Green Advocate of The Year
Award at the Singapore Green
Building Council-Building and Construction Authority
Sustainability Leadership Awards 2019.
(cid:31)(cid:30)(cid:29)(cid:28)
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102 Frasers Property Limited
Sustainability Report • Managing Sustainability
Stakeholder Engagement
Through regular stakeholder engagement, we gather
valuable feedback to direct our sustainability efforts to
areas where the most impact can be felt. To understand
their concerns better, we actively engage our key
stakeholders through various channels.
Key Stakeholders
Key Topics of Concern
Mode of Engagement
Frequency of Engagement and FY19 Highlights
Contractors, Consultants
and Suppliers
• Health and safety
• Safety briefings, exercises and declarations
• Daily, weekly and monthly safety briefings, exercises and
declarations at our development sites
Customers
Employees
Investment
Community
• Customer satisfaction
• Quality of facilities and
services
• Health and safety
• Career development
• Employee engagement
• Staff bonding
• Health and safety
• Impacts on the environment
and society
• Financial results
• Business performance and
outlook
• Corporate governance
Local Community
• Community investments
• Business impacts on the
environment and society
• Feedback channels
• Staff involvement in local communities
• Community Development initiatives
• Over 480 community development initiatives implemented
• Over 7,600 staff-hours volunteered
• Over $1.0 million contributed to community investment
Regulators and
Non-Governmental
Organisations (NGOs)
• Regulatory compliance
• Corporate governance
• Regulatory/industry trends
and standards
• Participation in NGOs
• Surveys and focus groups
• Participation in Company of Good by National Volunteer &
Philanthropy Centre, Australia Property Industry Foundation,
Singapore Security Tripartite Cluster, SGBC Board, GBCA
Board, and BCA Green Mark Advisory Committee
• Customer service counters
• 550,000 customers were engaged through rewards
• Customer care and rewards programme
programme in Singapore
• Surveys and feedback channels
• Surveys conducted for tenants, hospitality guests and
homebuyers – results on page 130
• Training programme
• Surveys and feedback channels
• Team-building and annual activities
• 194,520 hours of training were completed
• 100% of staff with annual appraisal reviews
• Annual Group-wide Frasers Property Environment and
• Environmental and Health & Safety awareness
Health & Safety Months
activities
• Results briefings
• Annual General Meeting
• Investor conferences
• ESG surveys
• Half-yearly briefings
• Annual General Meeting
• 132 investor meetings and conferences
• 2019 GRESB assessment for FPL, FPA, FCT, FCOT, FHT and
FLT
initiatives
P101_Managing Sustainablility.indd 102
10/12/19 3:28 PM
and Suppliers
Customers
Employees
Investment
Community
• Customer satisfaction
• Quality of facilities and
services
• Health and safety
• Career development
• Employee engagement
• Staff bonding
• Health and safety
• Impacts on the environment
and society
• Financial results
• Business performance and
outlook
• Corporate governance
Key Stakeholders
Key Topics of Concern
Mode of Engagement
Frequency of Engagement and FY19 Highlights
Contractors, Consultants
• Health and safety
• Safety briefings, exercises and declarations
• Daily, weekly and monthly safety briefings, exercises and
declarations at our development sites
Annual Report 2019 103
• Customer service counters
• Customer care and rewards programme
• Surveys and feedback channels
• 550,000 customers were engaged through rewards
programme in Singapore
• Surveys conducted for tenants, hospitality guests and
homebuyers – results on page 130
• Training programme
• Surveys and feedback channels
• Team-building and annual activities
• Environmental and Health & Safety awareness
• 194,520 hours of training were completed
• 100% of staff with annual appraisal reviews
• Annual Group-wide Frasers Property Environment and
Health & Safety Months
activities
• Results briefings
• Annual General Meeting
• Investor conferences
• ESG surveys
• Half-yearly briefings
• Annual General Meeting
• 132 investor meetings and conferences
• 2019 GRESB assessment for FPL, FPA, FCT, FCOT, FHT and
FLT
Local Community
• Community investments
• Business impacts on the
environment and society
• Feedback channels
• Staff involvement in local communities
• Community Development initiatives
• Over 480 community development initiatives implemented
• Over 7,600 staff-hours volunteered
• Over $1.0 million contributed to community investment
Regulators and
Non-Governmental
• Regulatory compliance
• Corporate governance
Organisations (NGOs)
• Regulatory/industry trends
and standards
• Participation in NGOs
• Surveys and focus groups
initiatives
• Participation in Company of Good by National Volunteer &
Philanthropy Centre, Australia Property Industry Foundation,
Singapore Security Tripartite Cluster, SGBC Board, GBCA
Board, and BCA Green Mark Advisory Committee
P101_Managing Sustainablility.indd 103
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104 Frasers Property Limited
Sustainability Report • Managing Sustainability
Materiality Assessment
We regularly review and assess the relevance of our material topics to our business and our stakeholders. This year, several
surveys were carried out with both internal and external stakeholders – including customers, tenants, property and project
managers, and contractors across our operations – to seek their views in relation to ESG issues important to the Group.
Through the surveys, we concluded that our material topics remain relevant to our business although there were several
emerging topics identified for some of our business units to take into account. This year, we aligned our material topics to
Sustainability
Pillars
Focus Areas
What It Means to FPL
Acting
Progressively
Responsible
Investment
We invest strategically, taking into consideration financial and ESG criteria in the evaluation
process to deliver long-term economic performance.
Risk-Based
Management
To future-proof our business, it is integral to comprehensively assess environment,
health and safety and social risks associated with our business.
• Environmental Compliance
FPL, Contractors
• Established policies and robust processes in place, with
a Board Diversity Policy added in FY19
Resilient
Properties
Innovation
It is critical to build the resilience of our properties and adapt to changes to stay ahead
through the way we operate.
An innovative culture enables our business to stay relevant and meet the expectations of
our stakeholders.
• Economic performance
FPL, Customers
• Implemented a Resilience Policy and Framework
and Tenants
in Australia
• Economic performance
FPL, Contractors,
• 83 staff members across the Group were trained in
Customers and
Design Thinking to support a culture of innovation at FPL
Consuming
Responsibly
Energy &
Carbon
The built-environment is one of the largest sources of energy usage globally. We recognise
its importance to building operations and proactively manage our energy consumption.
• Energy (GRI 302)
• Emissions (GRI 305)
FPL, Customers
• Reduced 0.3% in energy intensity and 2.1% in greenhouse
and Tenants
gas emissions intensity for our investment properties
Water
Waste
Water is a scarce resource. We strive to conserve water whenever possible to reduce
unnecessary usage and wastage.
We want to reduce our impacts on the environment. We encourage efficient use and
management of resources to curb waste generation.
Materials &
Supply Chain
Our impacts extend beyond our operations. We are aware of our roles in influencing
our supply chain to create value across our value chain.
Biodiversity
We acknowledge the importance of biodiversity, and seek to conserve and enhance
nature through responsible development.
Focusing on
People
Skills &
Leadership
A progressive leadership team and a well-developed workforce empowered to innovate
are central to our success.
• Employment (GRI 401)
FPL
• Delivered 194,520 training hours for employees in FY19
• Training and Education (GRI 404)
• Dedicated over 2% of our payroll cost to learning and
Diversity &
Inclusion
We promote the social inclusion of all, irrespective of age, sex, disability, race, ethnicity,
origin, religion or status.
Health &
Well-being
We are mindful that our business operations may be vulnerable to health and safety
incidents. Ensuring that our employees and contractors have a safe working environment
is our top priority.
• Labour/Management Relations
FPL
• Target to establish a Diversity & Inclusion Policy by FY20
(GRI 402)
• Emerging topic: Diversity and
Equal Opportunity (GRI 405)
• Became one of the founding members of Women in
Industrial to attract diversity to the industrial and
logistics sector in Australia
• Occupational Health and Safety
FPL, Contractors,
• Close to 90% of commercial and retail properties in
(GRI 403)
Customers and
Singapore certified with OHSAS 18001
Tenants
• Residential, retail, commercial and industrial units in
Australia certified with AS/NZS 4801
• Developed a Health & Safety Policy and strategy in the
Community
Connectedness
We have the potential to create significant positive impacts in the communities that
we operate in through our properties. We endeavour to run a business that responds to
our communities’ needs.
• Local communities (GRI 413)
FPL, NGOs
and Local
• Contributed over $1.0 million and volunteered 7,600
staff-hours to charities and community groups
Communities
• Implemented Corporate Social Responsibility Policy
Material Topics & GRI Indicators
Boundaries
Progress towards the SDGs
SDGs
• Economic performance
FPL
• Secured $3.4 billion green loan financing since Sep 2018
• Achieved green building certifications for over 200
properties and projects globally to date
• Anti-corruption (GRI 205)
• Marketing and Labelling (GRI 417)
• Emerging topic: Anti-competitive
Behaviour (GRI 206)
(GRI 201)
(GRI 307)
(GRI 201)
(GRI 201)
(GRI 301)
(GRI 304)
Tenants
and Tenants
• Water (GRI 303)
FPL, Customers
• Reduced 0.7% in water intensity globally in FY19
globally in FY19
• Emerging topic: Effluents and
FPL, Customers
• Reduced waste intensity by 2.0% in our operating
Waste (GRI 304)
and Tenants
commercial properties in Singapore, Australia, China,
Vietnam and the UK in FY19
• Emerging topic: Materials
FPL, Contractors
• Began the progressive roll-out of Global Procurement
Supplier Conduct Guidelines for Frasers Hospitality
• Established a Responsible Sourcing Group for FPA
• Emerging topic: Biodiversity
FPL
• Began developing a Biodiversity Management and
Feature Plan in Australia
development
UK
in Australia
P104_Materiality Assessment.indd 104
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Annual Report 2019 105
the 13 focus areas set out in our Sustainability Framework. We have also deepened our alignment to the UN SDGs to help us
streamline our sustainability efforts.
The table below shows how our material topics correspond to our focus areas and the relevant SDGs, and where we have
caused or contributed to the impacts through our business relationships.
Sustainability
Pillars
Acting
Focus Areas
What It Means to FPL
Material Topics & GRI Indicators
Boundaries
Progress towards the SDGs
SDGs
Progressively
Investment
process to deliver long-term economic performance.
(GRI 201)
Responsible
We invest strategically, taking into consideration financial and ESG criteria in the evaluation
• Economic performance
FPL
• Secured $3.4 billion green loan financing since Sep 2018
• Achieved green building certifications for over 200
properties and projects globally to date
Risk-Based
To future-proof our business, it is integral to comprehensively assess environment,
• Environmental Compliance
FPL, Contractors
• Established policies and robust processes in place, with
Management
health and safety and social risks associated with our business.
Resilient
Properties
through the way we operate.
It is critical to build the resilience of our properties and adapt to changes to stay ahead
Innovation
An innovative culture enables our business to stay relevant and meet the expectations of
our stakeholders.
Consuming
Responsibly
Energy &
Carbon
The built-environment is one of the largest sources of energy usage globally. We recognise
its importance to building operations and proactively manage our energy consumption.
(GRI 307)
• Anti-corruption (GRI 205)
• Marketing and Labelling (GRI 417)
• Emerging topic: Anti-competitive
Behaviour (GRI 206)
• Economic performance
(GRI 201)
• Economic performance
(GRI 201)
• Energy (GRI 302)
• Emissions (GRI 305)
Water
Water is a scarce resource. We strive to conserve water whenever possible to reduce
• Water (GRI 303)
unnecessary usage and wastage.
Waste
We want to reduce our impacts on the environment. We encourage efficient use and
management of resources to curb waste generation.
• Emerging topic: Effluents and
Waste (GRI 304)
FPL, Customers
and Tenants
FPL, Contractors,
Customers and
Tenants
FPL, Customers
and Tenants
FPL, Customers
and Tenants
FPL, Customers
and Tenants
Materials &
Supply Chain
Our impacts extend beyond our operations. We are aware of our roles in influencing
• Emerging topic: Materials
FPL, Contractors
our supply chain to create value across our value chain.
(GRI 301)
a Board Diversity Policy added in FY19
• Implemented a Resilience Policy and Framework
in Australia
• 83 staff members across the Group were trained in
Design Thinking to support a culture of innovation at FPL
• Reduced 0.3% in energy intensity and 2.1% in greenhouse
gas emissions intensity for our investment properties
globally in FY19
• Reduced 0.7% in water intensity globally in FY19
• Reduced waste intensity by 2.0% in our operating
commercial properties in Singapore, Australia, China,
Vietnam and the UK in FY19
• Began the progressive roll-out of Global Procurement
Supplier Conduct Guidelines for Frasers Hospitality
• Established a Responsible Sourcing Group for FPA
Biodiversity
We acknowledge the importance of biodiversity, and seek to conserve and enhance
• Emerging topic: Biodiversity
FPL
• Began developing a Biodiversity Management and
nature through responsible development.
(GRI 304)
Feature Plan in Australia
Focusing on
Skills &
A progressive leadership team and a well-developed workforce empowered to innovate
People
Leadership
are central to our success.
• Employment (GRI 401)
• Training and Education (GRI 404)
FPL
• Delivered 194,520 training hours for employees in FY19
• Dedicated over 2% of our payroll cost to learning and
Diversity &
Inclusion
origin, religion or status.
Health &
Well-being
We are mindful that our business operations may be vulnerable to health and safety
incidents. Ensuring that our employees and contractors have a safe working environment
is our top priority.
Community
We have the potential to create significant positive impacts in the communities that
Connectedness
we operate in through our properties. We endeavour to run a business that responds to
our communities’ needs.
We promote the social inclusion of all, irrespective of age, sex, disability, race, ethnicity,
• Labour/Management Relations
FPL
(GRI 402)
• Emerging topic: Diversity and
Equal Opportunity (GRI 405)
• Occupational Health and Safety
(GRI 403)
• Local communities (GRI 413)
development
• Target to establish a Diversity & Inclusion Policy by FY20
• Became one of the founding members of Women in
Industrial to attract diversity to the industrial and
logistics sector in Australia
FPL, Contractors,
Customers and
Tenants
• Close to 90% of commercial and retail properties in
Singapore certified with OHSAS 18001
• Residential, retail, commercial and industrial units in
Australia certified with AS/NZS 4801
• Developed a Health & Safety Policy and strategy in the
UK
FPL, NGOs
and Local
Communities
• Contributed over $1.0 million and volunteered 7,600
staff-hours to charities and community groups
• Implemented Corporate Social Responsibility Policy
in Australia
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106 Frasers Property Limited
Sustainability Report
Acting
Progressively
Acting Progressively
Why
Is Acting
Progressively
Important?
As a signatory to the UN Global Compact, we are committed to upholding
human rights, labour, environment and anti-corruption principles in carrying
out our business operations. By integrating ESG considerations when
managing our extensive property portfolio, we effectively manage risk,
build resilience and practise good corporate governance. Approaching this
with a progressive and innovative mindset, we strive to deliver exceptional
customer experiences that would differentiate FPL from its competitors.
Our
Contribution
to SDGs
How
Do We
Manage?
Establishing holistic overarching internal policies to
govern and guide management of the focus areas
Adopting progressive practices that advance
FPL in all focus areas on an on-going basis
Risk-Based Management
To ensure we maintain the highest standards of integrity, accountability and governance in our daily operations, we have
established policies and robust internal processes with specific guidance areas.
Corporate Policy
Guidance Area
Code of Business Conduct
Company ethics and conduct in relation to compliance monitoring, record keeping,
information confidentiality, conflicts of interest, insider trading, and dealings with key
counterparties
Whistle-blowing Policy
Channel for reporting concerns, including in financial or professional misconduct,
irregularities or non-compliance with laws and regulations, and corruption or bribery
Anti-bribery Policy
Prevention and management of bribery and corruption
Policy for Disclosure and
Approval of Purchase of
Property Projects
Declaration and approval requirements for any interested persons, directors
and employees of FPL, when purchasing property developed by FPL
Competition Act Compliance Manual
Compliance with the Competition Act to protect and promote healthy competitive
markets in Singapore
Personal Data Protection Policy
Compliance with the Personal Data Protection Act relating to the handling and
processing of personal data, and complaint handling procedures
Environment, Health &
Safety Policy
Board Diversity Policy
Safeguarding the health & safety of all relevant stakeholders and providing
an environmentally friendly place for them to work in or to conduct their business
Seeking to achieve a Board composition with appropriate balance, diversity and mix
of skills, business experience, background, age, gender, nationality, industry and
geographic knowledge, professional qualifications and other relevant qualities
P106_Acting Progressively.indd 106
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Annual Report 2019 107
We also adopt the following practices to ensure our compliance with laws and regulations in the following areas:
Area
Practices
Corruption and fraud
• Conduct due diligence checks in respect of Anti-Money Laundering and
Environment, health & safety
Countering the Financing of Terrorism for all parties who are interested in
purchasing or leasing a property from us
•
Implement ISO 14001 (Environment) across key business units and ISO 50001
(Energy) Management Systems in Singapore Office Building Management
• Adopt OHSAS 18001 and AS/NZS 4801 Occupational Health & Safety
Management System across key business units
Marketing communications
• Adhere to the Singapore Code of Advertising Practice, Urban Redevelopment
Authority of Singapore’s (URA) Housing Developers Rules and Housing Developers
(Show Unit) Rules 2015 for all advertising materials, including unit rendering and
show units
To safeguard the independence of the internal audit function, our Group Internal Audit Head reports directly to the
Chairman of the Audit Committee. Independent internal audits are designed to, inter alia, evaluate and improve the
effectiveness of risk management, control and governance processes. For further details, please refer to pages 143-173
on the Corporate Governance Report.
In FY19, there were :
• No substantiated bribery and corruption cases
• Three whistle-blowing cases, out of which one was substantiated
• No incident of non-compliance with regulations and industry codes concerning marketing communications
• Five cases of environmental breaches due to noise pollution at a development site in Singapore that resulted in fines
totalling $30,000 to the contractor
• A case of safety breach which resulted in a stop-work order at a development site in Australia and a fine of A$3,600
• An infringement decision by the Competition and Consumer Commission of Singapore in relation to a hospitality
property in Singapore
• Data breach at two of our hospitality properties in the UK
We continue to take progressive steps to minimise non-compliance incidences and breaches, and work together with
stakeholders to ensure appropriate precautions are taken throughout our value chain.
Responsible Investment
In managing our asset portfolio, we consider ESG aspects
when making strategic decisions that help us achieve
our sustainability objectives. Our two-pronged approach
towards a sustainable business involves greening both our
‘hardware’ and ‘software’ to deliver the positive outcomes
envisioned. By greening hardware, we seek to develop and
invest in properties that are green, efficient and resilient
as well as to enhance any assets that could improve green
performance. We also enhance our assets continuously to
ensure operational efficiency and savings for our tenants
and customers. In greening software, we engage regularly
with our customers, contractors and local communities to
raise awareness on environmental issues.
Green Financing
Through our sustainability initiatives, the Group has been
able to raise funds through green loans. Following our
first green loan in September 2018, we enhanced our
environmental credentials further with another four
green loans in FY19.
Two of these loans were industry firsts in benchmarking
themselves to green building standards. In March 2019,
our A$600 million syndicated green loan to refinance
an existing debt facility due in 2020 in Australia was the
first to be linked to GRESB performance. In July 2019, we
raised A$750 million, including an A$500 million tranche,
which was Singapore’s first green loan linked to the BCA
Green Mark performance.
In March 2019, FPL secured a Green Club five-year term
loan worth $785 million, to refinance existing loans
relating to the development of Northpoint City South
Wing. In June 2019, FLT undertook a A$170 million green
loan. To date, the Group has raised more than $3 billion
through green financing.
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108 Frasers Property Limited
Sustainability Report • Acting Progressively
Green Portfolio
Our portfolio of green properties is growing year-
on-year. As at FY19, our portfolio comprised 31 BCA
Green Mark certifi ed properties in Singapore and
164 Green Star Properties in Australia. Three of our
properties in Singapore are certifi ed to the highest
Green Mark Platinum level.
In Australia, we have the highest rated Industrial
Green Star portfolio in the country, averaging four
stars in the Green Star certifi cation. Most recently, The
Waterfront Town Centre at Shell Cove was awarded
a 5 Star Green Star Design & As Built Certifi cation.
This was our fi rst retail centre to achieve the Design
and As Built certifi cation under the Green Building
Council of Australia's Design and As Built tool. Three
of our properties in Australia were certifi ed as carbon-
neutral during the year.
In Europe, our industrial portfolio consists of fi ve
German Sustainable Building Council (DGNB)-certifi ed
and 17 Green Star-certifi ed properties in Germany,
along with two Building Research Establishment
Environmental Assessment Method (BREEAM)-
certifi ed and three Green Star-certifi ed properties
in the Netherlands. In the UK, seven buildings in our
Number of Green Mark Certifi cations in Singapore
Wangnoi 2, Wangnoi, Ayutthaya, Bangkok • Thailand
business parks are BREEAM-certifi ed. In Thailand, six
industrial properties are LEED- or EDGE-certifi ed. Our
12 hospitality properties in the UK have also received
awards under the Green Tourism certifi cation scheme.
DGNB and BREEAM are internationally-recognised green
building certifi cation schemes widely adopted in Europe
and the UK, while Green Tourism is an award certifi cation
programme that holistically assesses tourism practices
beyond the technical aspects of building attributes.
8
9
3
2
11
4
4
12
13
4
5
4
5
14
15
5
6
5
6
15
7
7
16
17
7
7
7
7
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Offi ce | Retail | Residential
Number of Green Star Certifi cations in Australia
14
11
51
20
11
1
51
27
12
1
65
50
12
2
65
64
13
2
1
84
1
2
5
9
12
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Industrial | Retail | Corporate | Offi ce | Development
P106-115_Acting Progressively.indd 108
12/12/19 5:54 PM
Our Journey
2006
Our first BCA Green
Mark-certified
development in
Singapore
2013
Largest multi-residential
building to achieve 5
Star Green Star rating in
Australia
Annual Report 2019 109
2018
Mar
Started construction
of the first LEED-
Neighbourhood
Development Platinum
project in Thailand
May
Accorded Green Mark
Champion by BCA in
Singapore
Dec
FPA portfolio awarded
4 Star Green Star rating
representing Best
Practice in building
operations
2016
First 6 Star Green Star
Community-rated
development in New
South Wales, Australia
Commenced work
on World’s Most
Sustainable Retail Mall,
targeting certification
by Living Building
ChallengeTM in Australia
2008
Our first Green Star
certified development in
Australia
2015
First company to
make commitment to
achieve 5 Star Green
Star ratings for all new
developments
2017
First 6 Star Green Star
for an industrial project
in Australia
2019
Apr
FPT to build two
large-scale industrial
parks designed
to achieve LEED
certification
It features a 2,000-sqm rooftop garden to supply fresh
produce to local restaurants and provide composting
facilities and organic fertilisers to residents. In addition,
on-site rooftop solar panels will provide renewable energy
to power the operations, while another system captures,
treats and reuses water to be self-sufficient, with net
positive water.
Industry Firsts
During the year, we became the first major developer
in Australia to support the Passive House movement, a
sustainable building standard already well-established
in Europe. Passive Houses use features such as double-
glazed windows, continuous thermal insulation and
airtight measures to reduce air leakage, regulate
temperatures, drastically
reducing heating and cooling
costs and improving air
quality. We are building
our Passive House at Point
Cook, with plans to test
its economic and comfort
benefits against the outcomes
of a standard family home
once the house is occupied by
the start of 2020.
In Melbourne, we are
building Burwood
Brickworks, the world’s
most sustainable retail mall
certified to the strictest
environmentally friendly
certification: The Living
Building Challenge.
Burwood Brickworks, Melbourne, Victoria • Australia
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110 Frasers Property Limited
Sustainability Report • Acting Progressively
In Thailand, One Bangkok is poised to be the country’s
largest integrated district that provides approximately
80,000 sqm of green open space. One Bangkok aims to be
the first LEED-Neighbourhood Platinum development in
Thailand with towers built to LEED and WELL Platinum
standards. It will include features such as district cooling,
fully-centralised security, and energy management
systems, designed to international standards for
sustainable long-term business operations, future growth,
efficiency and resiliency for the entire district.
We also launched The PARQ, the first WELL-certified
mixed-use development in Thailand. Its design concept
is based on the principles of work-life balance for
healthier and more productive lives. It is also designed to
achieve LEED Gold certification where more than 75% of
construction waste will be recycled and reused. Targeted
to open in 2020, it is set to achieve 13% energy savings
using high-performance chillers and daylight dimmers.
Artist's impression of One Bangkok • Thailand
Artist's impression of The PARQ, Bangkok • Thailand
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Annual Report 2019 111
Affiliation with Industry Bodies
The Group is committed to engaging and sharing knowledge with stakeholders on ESG issues. We believe in collaboration
with industry bodies and like-minded stakeholders to promote and influence sustainability outcomes in the property
industry.
Industry Bodies
Representatives from FPL and Positions Held
Green Building Council of Australia
Rod Fehring, Chairman of Board
Livable Housing Australia
Simone Dyer, Advisory Board Member
Living Future Institute of Australia
Paolo Bevilacqua, Chairman of Board
Real Estate Developers’ Association of Singapore
Christopher Tang, Honorary Treasurer
Real Estate Investment Trust Association of Singapore
Low Chee Wah, Vice President
BCA Green Mark Advisory Committee
Pang Chin Hong, Committee Member
Singapore Hotel Association
Colin Low, Board Member
Urban Development Institute Australia
Cameron Jackson, Vice President and Councillor, New South Wales
Jill Lim, Secretary and Councillor, Victoria
Cameron Leggatt, Member of the Board of Directors, Queensland
Endorsement and Participation in Sustainability Initiatives
• United Nations Global Compact (UNGC)
• Global Real Estate Sustainability Benchmark (GRESB)
• Task Force on Climate-Related Financial Disclosures (TCFD)
• Paris Agreement of the United Nations Framework Convention on Climate Change (UNFCCC)
• Tripartite Guidelines on Fair Employment Practices (TAFEP)
• Net Zero Carbon Buildings Commitment of the World Green Building Council
• Science-Based Targets Initiative (SBTi)
Resilient Properties
We need to be flexible and resilient in the way we operate by developing scalable solutions and adaptable places.
We are embedding integrated solutions, taking into consideration demographics, climate and lifestyle into our
developments.
We want to provide flexibility to minimise risks and capitalise on future social and environmental scenarios. We
partner with strategic stakeholders to understand the market landscape and develop solutions to enhance social and
environmental outcomes. We have implemented a Resilience Policy and Framework and embedded these within our
Australian business.
While we have been disclosing ESG performance in our sustainability reports since 2015, we recognise that it is
increasingly important to strengthen the linkages and impacts of sustainability initiatives to economic performance.
Hence, we have started to review the recommendations by the TCFD and have mapped out our disclosure accordingly.
P106_Acting Progressively.indd 111
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112 Frasers Property Limited
Sustainability Report • Acting Progressively
Key Aspect
Recommended Disclosure by TCFD
Governance
FPL’s governance around climate-
related risks and opportunities.
Strategy and Risk Management
Proactive approach to identify
opportunities and risks associated
with climate change and to build
resiliency in our portfolio.
• FPL's Board of Directors has oversight on broader sustainability trends, risks and
opportunities to connect sustainability with corporate purpose and strategy
of the Group. The Board ensures that we maintain a sound system of risk
management, one of which is Environment, Health & Safety (EHS) risk, covered in
our Enterprise Risk Management Framework. Refer to pages 141-142 for details.
• Management has established a SSC, chaired by the Group CEO, which actively
monitors the Group's EHS risks. The SSC also reviews the Group’s sustainability
performance against our key material topics and identifies opportunities for
improvement.
Physical Risks
• Since the 1880s, the average global surface temperature has risen about 1 degree
Celsius. The physical impacts of climate change on the built environment are
two-fold. It creates stress on the resilience of buildings through rising sea levels
and also increases the frequency of extreme weather events such as heatwaves,
droughts and floods. As we operate in multiple locations around the world, the
economic risks that climate change poses to real estate portfolios, including ours,
are varied and multi-dimensional. We will be taking steps to understand its full
impacts on our portfolio via a deeper level of scenario analysis in the near future.
Transition Risks
• To mitigate climate risks at the national level, more than 45 governments
worldwide have adopted carbon-related legislation, with more planning to
implement them in the future. For example, Singapore implemented the first
carbon tax scheme in Southeast Asia at $5/tCO2e in January 2019 and announced
plans to increase it to between $10 and $15/tCO2e by 2030. Other countries with
carbon-related legislation include the UK, European Union and China.
• Other legislations also involve restrictions on the operation of carbon-intensive
assets. Starting from April 2018, the UK’s Minimum Energy Efficiency Standard
prevents commercial landlords from granting or renewing commercial leases
of space in energy-inefficient properties to tenants. We recognise the potential
financial impacts resulting from carbon emissions regulations on our business,
and will carry out climate change scenario analysis on our portfolio.
Opportunities
• At the same time, new technologies present opportunities for our assets to
become more efficient, allowing us to climate-proof our assets. Increased investor
and stakeholder attention to climate change also presents an opportunity for us
to tap into additional sources of funding.
• Tapping into climate-related opportunities has the potential to improve our
financial performance by reducing our operating expenditures via efficiency gains
and cost reductions. Both risks in carbon price and energy costs are also reduced
accordingly. These have the potential to increase the value of assets that are both
high-quality and climate-resilient.
Impact on financial performance
• Both physical and transition risk will affect our business sustainability. For
example, droughts, floods and rising sea levels can negatively impact the ability
of our properties to operate. Extreme temperature fluctuations will increase our
heating and cooling loads and the need for more preventive maintenance on our
assets. Carbon prices in the jurisdictions where we operate in are also expected
to increase in the future, hence indirectly increasing energy prices. In other cases,
these present a risk to our future operating expenditures and asset values.
P106_Acting Progressively.indd 112
10/12/19 7:06 PM
Key Aspect
Recommended Disclosure by TCFD
Annual Report 2019 113
How do we mitigate risk and take advantage of opportunities?
• FPL understands the impacts of climate change and strives to strengthen its
resilience against extreme weather events and to prepare for more stringent
regulatory requirements as well as societal expectations. In 2018, FPL developed
its Sustainability Framework which sets out the Group’s sustainability priorities
through to 2030. The Framework is driven by three pillars, namely Acting
Progressively, Consuming Responsibly and Focusing on People, and recognises
13 corresponding ESG focus areas. Energy and Carbon, Water, Waste and Resilient
Properties are amongst the priority areas identified in the Framework.
• Recognising the impact of the building sector on the environment, FPL has
embarked on the green building journey since 2006. To date, we have more
than 200 properties and projects globally that have achieved green building
certifications. We manage the potential climate risks by operating energy-
efficient assets and working on the transition to lower-carbon energy sources
at our assets. For more information on our green portfolio, refer to page 108
for details.
• FPL has also put in place an EHS policy and EHSMS (Environmental, Health &
Safety Management System) that is aligned to the ISO14001 and OHSAS18001
standards, in key operational areas. The Group has achieved OHSAS18001 and
ISO14001 certification through external certifying bodies for its key operations
and is aiming to widen the coverage of certification to new businesses and
operations acquired in recent years. Some operations, such as our property
management of office and business space in Singapore, have gone the extra mile
to achieve ISO50001 (Energy Management System) certification.
• FPL has raised over $3 billion of green loan financing, thereby linking our
commitment to sustainability with the discipline of the capital markets. FLT and
FPA have also achieved stellar scores in the 2019 GRESB assessment, an investor-
led initiative to measure sustainability performance in the real estate sector. More
information on these can be found on pages 101 and 107, respectively.
Metrics and Targets
Metrics used to assess climate-
related risks and opportunities, and
performance against target sets for
material issues identified.
• FPL has been publishing Sustainability Reports in accordance with GRI Standards
since 2015 to disclose information pertaining to our ESG performance. FPL has
decreased its energy, Scope 2 GHG and water intensity by 0.3%, 2.1% and 0.7%
respectively during the year. In addition, FPA had its GHG emissions reduction
targets approved by the Science-Based Targets partnership in June 2019. More
information on these can be found on pages 116-118. At the Group level, we
are taking steps to set sustainability targets that are in line with both industry
standards and stakeholder expectations for our business units and expect to make
further progress in the coming years.
Innovation
Innovation connects technology, data science, design and strategy to create better solutions to improve our business
processes, enhance our customer experiences and future-proof our organisation. We encourage innovation across
our business through partnerships and organic innovation. We also leverage our assets such as customer knowledge,
engineering expertise and our extensive portfolio, putting our stakeholders at the core of our innovation pursuit.
In FY19, we welcomed our first Group Chief Digital Officer to lead the development and execution of the Group’s digital
vision and strategy. He is tasked with leading the digital transformation journey, identifying innovation opportunities and
building new digital business models. FPT also appointed a Chief Digital Officer to lead the digital transformation journey
in Thailand, strategically positioning the company to advance the automation of factories and warehouses to capture the
increasing market demand for industrial robotics and automation.
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114 Frasers Property Limited
Sustainability Report • Acting Progressively
Connecting through Workplace by Facebook
We launched Workplace by Facebook Group-wide in
November 2018. We believe this enterprise-grade
platform helps facilitate closer collaboration and
connectedness among colleagues across our multi-
national business. Workplace provides tools for
sharing updates and feedback, as well as broadcasting
announcements, hosting training sessions or meetings
involving staff based in diff erent countries. Townhalls
organised at the Group and business unit levels are
also broadcast live on Workplace to facilitate broader
participation from staff regardless of location.
FPT's joint venture with PBA Group in Thailand
Partnerships to Introduce Smart Automation
FPT embarked on a joint venture to develop two
large-scale smart industrial and logistics parks in
Thailand’s prime industrial and logistics districts. The
partnership with Mitsui Fudosan, Japan’s largest real
estate developer, will leverage the strength of FPT’s
market-leading position in Thailand as well as Mitsui
Fudosan’s technology led-smart industrial and logistics
experience to meet the growing demand for innovative
solutions. The facilities and amenities will be designed
and built according to the International Masterplan
standard under LEED certifi cation.
Another partnership was forged with PBA Group, a
Singapore-based technology provider of robotics and
automation solutions, which has developed a full suite
of solutions such as specialised material handling,
automated forklifts, automated guide vehicles, and
collaborative robots. The strategic tie-up aims to meet
the increasing demand for industrial robotics and
automation in Thailand.
Workplace at Frasers Property
Embracing Design Thinking
During the year, FPL kicked off its Design Thinking journey,
beginning with workshops attended by our senior
leadership team as well as a pioneer batch of 41 Design
Thinking Catalysts. Based on human-centred design
principles, Design Thinking is a problem-solving approach
that fosters creativity, and maps out new ideas against what
is feasible, viable and desirable.
To date, 83 staff members have attended the workshops
and are equipped to support a culture of innovation at FPL,
as well as to contribute to implementing new ideas, from
incremental to disruptive.
Design Thinkers at work
P106-115_Acting Progressively.indd 114
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Annual Report 2019 115
Enhancing Dining Experiences
We introduced an optimised version of our Makan Master
app, which we had fi rst launched in FY18 with our food
and beverage partners across our retail properties
in Singapore. Diners using the app can now make
reservations with a better interface to manage orders
and to make cashless payments. Makan Master is part
of Frasers Experience, a multi-feature app designed to
enhance customers' experiences across our retail and
commercial properties.
Makan Master, an F&B concierge service on the
Frasers Experience app
Evolving Hospitality Processes
Our unifying idea, experience matters guides our innovation
approach for our hospitality business. To create memorable
and enriching experiences for customers, we piloted several
innovative solutions in Singapore and Australia.
the HotSOS housekeeping workfl ow management system.
HotSOS provides a cloud-based solution that automates
daily housekeeping operations, prioritising guestroom
cleaning, digitalising checklist processes and virtualising the
management of the department.
We implemented a paperless check-in at Capri by Fraser,
China Square and Capri by Fraser, Changi City in Singapore
and four properties under management in Australia. In
Australia, the initiative has resulted in 40% improvement in
check-in effi ciency and a reduction in paper use by 30%-40%.
At Capri by Fraser, China Square, we installed smart control
units to optimise lighting and air conditioning to create
a comfortable environment for guests, with expected
savings of 10% on our electricity bill.
At Capri by Fraser, China Square, we introduced a RFID
linen tagging system to eliminate the need to manually
sort, count and deliver linen. The system has increased
productivity levels, improved work effi ciency and helped
in staff retention. At the same property, we further rolled
out an automated conveyor belt system for staff uniforms
to save space and time for the housekeeping staff and
eliminate the need to allocate dedicated manpower to
distribute uniforms every morning.
To improve the concierge experience for guests, we
launched Lola, a 24/7 chatbot that provides immediate
assistance to guests at Capri by Fraser, China Square
and Capri by Fraser, Changi City. Accessible conveniently
through smartphones, Lola complements the existing
concierge services by providing recommendations for
dining, activities and events in Singapore.
Believing that our employees’ experience matters, we have
equipped employees with better tools to perform their work
more eff ectively. At Capri by Fraser, China Square, Capri by
Fraser, Brisbane and Fraser Suites Perth, we implemented
Paperless check-in at Fraser Suites Sydney • Australia
Co-owning solutions to customer and business challenges
FPA’s innovation initiative is in its fourth year of enhancing culture as well as customer experience.
In FY19, FPA launched DASH, a ‘bottom-up’ innovation practice where staff are invited to solve
pressing customer and business challenges. DASH is a rapid-fi re four week sprint with a new challenge
posed each month. Solutions are shortlisted within a fortnight, with experimentation commencing
immediately. To date, bottom-up innovation has been applied to challenges faced by our property
management, community development and construction teams.
Digital solutions to enhance work effi ciency
FPA developed and launched eTracker, an app that enables the systematic management of quality
assurance checks, pre-settlement inspections and defect resolution, and YourSpace, an online portal for
our industrial customers. In addition, to help gather insights for the next phase of digital growth, FPA
conducted a deep dive into the residential customer experience gathering both data-driven and human-
centred insights.
P106-115_Acting Progressively.indd 115
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116 Frasers Property Limited
Sustainability Report
Consuming
Responsibly
Why
Is Consuming
Responsibly
Important?
How
Do We
Manage?
Consuming Responsibly
Buildings account for approximately 39% of the world’s energy consumption
and greenhouse gas emissions, of which 28% comes from operational
assets. As a responsible corporate citizen, we seek to reduce our energy
consumption and carbon emissions from electricity generation, as well as
water consumption and waste generation to play our part in fulfi lling the
targets set by the Paris Agreement.
Our
Contribution
to SDGs
Establishing policies that drive positive
outcomes for the environment
Adopting practices that help our employees
and customers to manage and use resources
eff ectively
Energy & Carbon
FPL’s portfolio consists of an array of green properties
designed with energy-effi cient performance in mind.
In Singapore, Frasers Tower achieved BCA Green Mark
Platinum certifi cation. BCA has also ranked Alexandra
Point, Causeway Point and Capri by Fraser, Changi City
among the top 10 energy-effi cient properties respectively
in the private offi ce, retail and hotel categories in the past
few years. Some energy-effi cient practices adopted at
these properties include the use of effi cient chiller plants
with variable speed drives, LED lights and motion sensors.
Our energy initiatives have a compounded eff ect on our
emissions. Reduced energy consumption leads to reduced
greenhouse gas (GHG) emissions. Besides enhancing
our properties, we have started off ering our expertise to
our Australian tenants to calculate their emissions since
May this year. This is part of our eff ort to assist them
to purchase carbon off sets.
The Group’s total energy consumption increased by
6.4% in FY19 due to the expansion of our portfolio.
However, the overall energy intensity dropped by 0.3% to
108 kWh/m2 during the year, with intensity reductions in
the Singapore offi ce, Australia offi ce and UK business park
portfolios off setting increases in the Singapore retail and
hospitality portfolios. In line with the reduction in energy
intensity, our Scope 2 GHG emissions intensity decreased
by 2.1% to 58 kgCO2e/m2 during the year.
P116_Consuming Responsibly.indd 116
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Annual Report 2019 117
Electricity Consumption (GWh)
Energy Intensity (kWh/m2)
350
300
250
200
150
100
50
0
3
1
19
180
64
14
29
165
59
14
31
3
2
25
191
68
13
28
200
160
120
80
40
0
119
109
108
FY17
FY18
FY19
FY17
FY18
FY19
GHG Emissions (‘000 tonnes of CO2e)
GHG Intensity (kgCO2e/m2)
200
160
120
80
40
0
2
1
5
2
1
6
114
117
27
12
12
28
11
12
101
25
12
13
100
80
60
40
20
0
66.0
59.4
58.2
FY17
FY18
FY19
FY17
FY18
FY19
Singapore Office | Australia Office | Singapore Retail
Hospitality | UK Business Park | China | Vietnam
Singapore Office | Australia Office | Singapore Retail
Hospitality | UK Business Park | China | Vietnam | Group
Carbon Neutral Target in Australia
In March 2019, we announced our commitment to build a
carbon-neutral business in Australia by 2028. FPA became
the second Australian organisation in the property sector
to have its GHG emissions reduction targets approved
by the Science-Based Targets partnership in June 2019.
The Science-Based Targets initiative is a not-for-profit
partnership between CDP, the UN Global Compact, the
World Resources Institute and the World Wide Fund for
Nature (WWF).
conservation projects in Tasmania and Zimbabwe and a Thai
cement biomass project. It was certified carbon-neutral by
NABERS in December 2018.
Gateway Building in Sydney, New South Wales, received
its carbon-neutral certification from NABERS against the
Australian Government’s National Offset Standard for
Buildings in February 2019. It offsets its remaining emissions
through investments in a Tasmanian forest conservation
project and a hydropower project in China.
FPA targets to reduce its Scope 1 and 2 GHG emissions by
50% per square metre and Scope 3 GHG emissions by 25%
per square metre by 2028. Three buildings in Australia were
successfully certified as Carbon Neutral Buildings in FY19.
Building F in Rhodes, New South Wales, achieved a NABERS
Energy rating of 5.5 stars using a combination of energy
efficiency measures, including building monitoring and
tuning, along with a 100 kW solar system to minimise
energy use onsite. For its remaining energy demand, the
building uses 20% GreenPower. Any remaining emissions
generated by the building were offset by investing in forest
Arndell Park in Western Sydney, New South Wales,
partnered with one of its key tenants, DHL Supply Chain, to
achieve GBCA’s whole building carbon-neutral certification
for its service centre in December 2018. The facility
improved its efficiency and reduced its emissions through
LED lighting upgrades and the installation of a 200kW solar
photovoltaic (PV) system. It also turned off the warehouse
air-conditioning during winter and staggered forklift
charging to reduce peak demand. All remaining emissions
generated were offset by investing in a forest conservation
project in Tasmania as well as a wind project in Maharashtra,
India.
Refer to Notes, page 137 for energy reporting scope
P116_Consuming Responsibly.indd 117
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118 Frasers Property Limited
Sustainability Report • Consuming Responsibly
Water
We are committed to optimising our water usage and
enhancing our assets towards becoming water-resilient
in the future. Among our ongoing initiatives to improve
water management at all our properties, we install
certified water-efficient fittings and appliances as well
as rainwater storage tanks to collect rainwater for non-
potable uses. Our properties also utilise efficient irrigation
systems with rain sensors and water treatment systems
that reduce the water refill frequency of cooling towers.
We observed a similar trend to our energy consumption
for our water consumption due to our portfolio expansion
in FY19. Our total water consumption increased by 5.6%
during the year. However, as a result of our ongoing water
optimisation initiatives in Australia and better water
management practices in Australia and the UK, our water
intensity decreased across our asset portfolio by 0.7% to
1.22m3/m2 during the year.
Water Consumption (mil m3)
Water Intensity (m3/m2)
4.0
3.0
2.0
1.0
0.0
0.02
0.1
0.1
2.0
0.9
0.1
0.3
1.9
0.9
0.1
0.3
FY17
FY18
0.02
0.1
0.1
2.2
0.9
0.1
0.3
FY19
3.0
2.0
1.0
0.0
1.45
1.23
1.22
FY17
FY18
FY19
Singapore Office | Australia Office | Singapore Retail
Hospitality | UK Business Park | China | Vietnam
Singapore Office | Australia Office | Singapore Retail
Hospitality | UK Business Park | China | Vietnam | Group
Water Management Innovations
We adopted several new initiatives to manage our water consumption during the year.
Hotel du Vin Winchester in the UK installed a water butt in the hotel’s garden ground to harvest rainwater. This initiative reduced
annual freshwater use by as much as 6,000 litres for landscaping, particularly during the hot summers. The hotel is currently
exploring other uses for the harvested rainwater, such as the cleaning of patios with the use of a water pressure washer.
In India, Frasers Suites New Delhi introduced an automatic pool cleaning robot to reduce the water and manpower
required to clean its swimming pool. The property previously required the pool to be emptied two to three times yearly
and a dedicated team to scrub and flush the pool with brushes and cleaning chemicals. The cleaning robot, which is
fitted with a vacuum bag, reduces the need for the pool filter backwashes from daily to twice per week and reduced the
estimated water consumption by 120 m3 annually.
Refer to Notes, page 137 for water reporting scope
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Annual Report 2019 119
Waste
FPL adopts good waste management practices to prevent
the contamination of air, water and food sources. We
encourage the 3Rs – reduce, reuse and recycle – to ensure
the prudent use of resources and to divert waste from
landfi lls and incineration.
In FY19, a total of 23,190 tonnes of non-hazardous waste
was generated in our Singapore, Australia, China, Vietnam
and the UK properties. Our waste intensity decreased
by 2.0 % to 19.53 kg/m2 mainly due to a decrease in the
Singapore offi ce and Australia offi ce portfolios, off setting
the increase in our Singapore retail portfolio. This year,
we also started collecting recycling data, which showed
we attained a 11.8% recycling rate for our Singapore,
Australia, China, Vietnam and the UK properties. Our
waste generated were disposed of in accordance with
local regulations by our contractors. Most of the non-
recyclables waste generated were sent for energy
recovery via incineration in Singapore, China and the UK,
and to landfi lls in Australia and Vietnam.
Waste Generated ('000 tonnes)
Waste Intensity (kg/m2)
25
20
15
10
5
0
0.02
0.35
2.6
0.35
2.6
0.02
0.34
2.6
16.0
16.8
0.7
2.3
0.7
2.7
60
50
40
30
20
10
0
19.93
19.53
FY18 FY19
FY18
FY19
Singapore Offi ce | Australia Offi ce | Singapore Retail
UK Business Park | China | Vietnam
Singapore Offi ce | Australia Offi ce | Singapore Retail
UK Business Park | China | Vietnam | Group
Reducing and Repurposing
To strategically manage and fi nd new uses for waste, we implemented various programmes in FY19. Frasers Hospitality
began phasing out single-use plastics across its global operations. In this exercise, we replaced plastic straws, amenities
and packaging with alternative or biodegradable materials.
The Go-Paperless initiative, which Frasers Hospitality pioneered in Australia three years ago, was rolled out to 12 properties
across four countries, as at September 2019. We were the fi rst hotel group in Australia to fully implement Paperless
Check-in, Tokenisation and EcoSign concepts to cut down the use of paper. As one of the pioneers to adopt the initiative,
we achieved paper reduction of between 10% and 40% across the fi nance, front offi ce and reservation departments.
In Australia, we also used carpets made from recycled PET bottles in commercial and industrial assets and initiated a
trial to use recycled materials in asphalt to pave roads in Perth.
Frasers Property Environment Month 2019
We organised the annual Environment Month in March 2019,
focusing this year around the theme of ‘Consuming Responsibly’.
Through a line-up of events, employees were encouraged to
reconsider their purchasing and disposal habits. These included
an excursion to visit an e-waste recycling plant, a shoe donation
eff ort, and a charity garage sale to benefi t the Children’s Aid
Society. In Singapore, Frasers Tower organised its fi rst car-free
weekend, while Capri by Fraser, Changi City distributed reusable
straw sets to guests.
In addition, more than 100 properties worldwide participated in
the Global Eco Challenge, which encouraged our employees to
take steps to reduce their environmental footprint through their
operations and everyday lives.
Car-free Weekend at Frasers Tower • Singapore
P116_Consuming Responsibly.indd 119
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120 Frasers Property Limited
Sustainability Report • Consuming Responsibly
Enhancing Recycling
We are conscious of the role we play
as property owner and manager in
engaging with our stakeholders –
employees, tenants and customers – to
reduce and manage waste efficiently.
In Singapore, we support the
government’s vision of transitioning to
a Zero Waste Nation by collaborating
with partners to enhance our recycling
programmes and enabling our tenants
and customers to participate as well.
We have partnered with Starhub to
collect and recycle e-waste for several
years. In FY19, 15,412 kg of e-waste
was collected from 15 commercial
properties in Singapore, a 49% increase
compared to the previous year due to
the increase in public awareness.
E-waste recycling bins at all our retail
and commercial properties • Singapore
We collaborated with Fraser and Neave,
Limited and NTUC Fairprice to install
smart Reverse Vending Machines at
four retail malls in Singapore. These
machines incentivise customers
to recycle used bottles and cans in
exchange for NTUC FairPrice discount
coupons. Since piloting them at two
retail malls in January 2018, we have
successfully collected and recycled a
total of 50,604 bottles and cans, as at
April 2019.
In Singapore, we further partnered
with Greensquare Textile Recycling to
organise a textile recycling event at
Alexandra Technopark. Recycling boxes
were provided for the collection of
clean clothes, paired shoes, accessories
and household linen.
Materials & Supply Chain
Understanding that sustainability extends beyond our
operations to our supply chain, we seek to ensure that
we source safe, renewable and responsible materials
for our business. We have implemented various
initiatives across the Group to work towards a healthy,
safe and responsible supply chain.
A major source of environmental impact in the real
estate sector comes from building materials used in
construction, which account for 11% of global carbon
emissions. In FY19, we procured a total of 7,341
tonnes of steel, 581 tonnes of timber, 61,271 tonnes
of concrete and 110 tonnes of granite for two ongoing
construction projects and one asset enhancement
project in Singapore, amounting to a total Scope 3
embodied carbon content of 21,870 tCO2e. Carbon
emissions from electricity, gas and fuel use at these
projects amounted to 1,192 tCO2e. We will continue to
expand on data collection at our construction projects
and look at procurement processes to reduce embodied
carbon going forward.
Frasers Hospitality (FH) has been progressively rolling
out its Global Procurement Supplier Conduct Guideline
since 2017. The guideline provides an overarching
standard of conduct for our suppliers relating to human
rights, bribery and corruption, equal employment
opportunities, sexual harassment and environmental
management. FH intends to implement this guideline
across all its operating properties.
Refer to Notes, page 137 for embodied carbon reporting scope
Frasers Hospitality Global Procurement Supplier
Conduct Guideline
Key standards of conduct covering the following aspects:
• Accuracy and Completeness of Records and Reports
• Conflicts of Interests
• Confidential or Proprietary Information and
Intellectual Property
• Dealing with Government Officials, Government
Employees, Company Customers and Suppliers
• Hiring Government Officials or Government Employees
• Equal Employee Opportunity
• Sexual Harassment
• Corporate Social Responsibility
In Australia, our Responsible Sourcing Working Group
has been working to pilot new and altered processes in
our Business Process Manual to respond to Australia’s
Modern Slavery Act that will take effect in 2020. FPA
also joined a consortium of developers to work with the
Property Council of Australia to assess suppliers based
on their risk of engaging in modern slavery. A reformed
Responsible Sourcing group is tasked with overseeing
and implementing the recommended changes. FPA also
established a Red List database for transparent and
sustainable products.
In the UK, FH and Frasers Property UK released a Modern
Slavery Act 2015: Slavery and Human Trafficking
Statement last year. The statement summarised FH's
approach towards modern slavery and human trafficking
and identified emerging risks of modern slavery, in
compliance with the Modern Slavery Act. It reiterated the
business’s commitment to prevent human rights abuses
and to combat modern slavery and human trafficking
across its operations, and to work with the industry to
share best practices.
P116_Consuming Responsibly.indd 120
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Annual Report 2019 121
Fairwater, Sydney, New South Wales • Australia
Biodiversity
We strive to conserve and regenerate the natural
environment and aim to leave every site we develop
better than when we arrived.
In Australia, we target to have biodiversity management
and feature plans for all projects by 2020. The plan
aims to help FPA celebrate and support biodiversity
and biophilia in our projects. FPA is also conscious
of the Biodiversity Conservation Act, which requires
developers to purchase ‘biodiversity off set credits’ if their
developments are deemed to aff ect the environment
negatively. We work with a specialist consultant to
prepare a Biodiversity Development Assessment Report
to understand our impact on the environment.
In Singapore, we work closely with National Parks Board
and relevant parties when our developments are located
within the proximity of nature reserves and parks to
protect fl ora and fauna. When we developed Waterway
Point, the fi rst integrated waterfront residential and
retail development at Punggol Watertown, we designed
walkways linking the development to the entire
waterfront promenade, surrounding waterway and parks.
Baitang One, Suzhou • China
Excellence Award and the Best Living Residential
Environment Award for creating the most liveable
residential precinct from the Suzhou Government in 2019.
Our development, Baitang One in Suzhou, China,
which is located next to Baitang Botanical Park, boasts
architectural features that incorporate the park’s natural
greenery which extends into, and intertwines, with the
recreational gardens of these homes. The project had
received several awards including the Construction
In Germany, we partnered with the German Nature
Conservation Association to create extensive green
spaces at the Hermes facility in Hamburg. At our Bosch
facility in Tamm, we introduced the idea of keeping
beehives on the rooftop. Honey collected from the hives is
given away to tenants.
P116_Consuming Responsibly.indd 121
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122 Frasers Property Limited
Sustainability Report
Focusing on
People
Why
Is Focusing
on People
Important?
How
Do We
Manage?
Focusing on People
Our business is people-focused. We strive to create a diverse and
equal workplace for our employees to fl ourish. We are committed
to supporting and protecting the interests and well-being of our
stakeholders – employees, tenants, customers and communities
– through our business practices and community investments as
they are key drivers of our growth and success.
Our
Contribution
to SDGs
Establishing policies that focus on strengthening
our human capital and leaving positive impacts
on communities where we operate
Adopting practices that build synergies for
our business, people and the community
Diversity & Inclusion
All employees are integral to the Group as they bring with
them diverse experiences, perspectives and cultures to
deliver on our promise of ‘experience matters’.
FPL upholds inclusive and fair employment practices and
principles, providing employees with opportunities based
on merit. We have an open appraisal system across the
Group and review each employee’s performance annually.
We are a signatory of the Tripartite Alliance for Fair and
Progressive Employment Practices in Singapore and a
member of the Singapore National Employer Federation.
In FY19, our headcount was 4,960, an increase of 7%
year-on-year due to our portfolio expansion. Our gender
distribution was relatively balanced at a ratio of 52:48,
with 2,562 male and 2,398 female employees. Women
currently represent 37% of our Senior Management Team
(including those who report directly to the Executive
Management) and 9% of our Board of Directors. Our hiring
rate of 39% was higher than the voluntary turnover rate
of 34% across the Group. A higher level of voluntary
turnover was recorded for overseas staff , especially in the
labour-intensive hospitality industry, as well as among
non-executive staff . In Singapore, our turnover rate was at
a moderate 17%.
Number of Employees, New Hires & Turnover by Region
6,000
5,000
4,635
4,000
3,000
2,000
1,000
57%
18%
25%
0
FY18
4,960
60%
15%
25%
FY19
1,946
80%
7%
13%
FY18
1,920
77%
6%
17%
FY19
1,559
83%
5%
12%
FY18
1,700
80%
8%
12%
FY19
Permanent Employees
|
New Hires
|
Voluntary Turnover
Singapore | Australia | Rest of Overseas
P122_Focusing on People.indd 122
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Employee Profile
By Type (%)
FY19
FY18
32
29
68
71
Annual Report 2019 123
By Gender (%)
FY19
FY18
48
48
52
52
Executive | Non-Executive
Male | Female
By Age Group (%)
FY19
FY18
15
14
58
56
27
30
By Country (%)
FY19
14
7
40
43
FY18
25
25
18
15
7
6
<30 years old | 30-49 years old | ≥50 years old
SG | AUS | PRC | EMEA | Others
Employee Type by Age Group (%)
Employee Type by Gender (%)
70
60
50
40
30
20
10
0
4.7
21.6
3.2
FY18
5.0
23.8
3.0
FY19
9.7
34.3
9.9
34.3
26.5
24.0
FY18
FY19
70
60
50
40
30
20
10
0
32.8
31.5
14.8
14.6
FY18
16.9
15.0
FY19
37.7
36.6
FY18
FY19
Executive
|
Non-Executive
Executive
|
Non-Executive
<30 years old | 30-49 years old | ≥50 years old
Male | Female
P122_Focusing on People.indd 123
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124 Frasers Property Limited
Gender Equality
FPL has made signifi cant progress in gender equality
over the past few years. We aim to adopt and
strengthen policies that promote gender equality and
empowerment of women at all levels.
In Australia, we are working on a Flexible Working
Policy, gender-neutral parental leave, domestic and
family violence support, through our White Ribbon
accreditation, and fostering emerging talent and
pathways for women into non-traditional roles. FPA
has become one of 141 organisations nationally and
one of fi ve in the real estate industry to be recognised
as an Employer of Choice for Gender Equality from the
Workplace Gender Equality Agency by the Australian
government. This citation is designed to encourage,
recognise and promote active commitment to
achieve gender equality in Australian workplaces, in
areas such as leadership, gender remuneration gaps,
fl exible working and other initiatives to support family
responsibilities, employee consultation, prevention of
sex-based harassment and discrimination and targets
for improving gender equality outcomes.
FPA is also one of the founding members of Women in
Industrial (WiN), alongside other leading institutional
owners and agencies. WiN is an industry body
established to attract diversity to the industrial and
logistics sector by off ering employment, educational
and networking opportunities to interested persons.
Outreach Programmes
In Australia, we hosted 100 teenage girls under the
Property Council Australia - Girls in Property Programme,
helping them gain insight into the vast range of careers
available within the property industry. The programme
raises awareness of female participation in the property
industry and hopes to increase exposure to the various
careers available to women.
In Singapore, we were the only real estate company to
participate in the ‘We Got Your Back’ career fair organised
by Mums@Work (Singapore). The event engaged more
than 160 women looking to re-enter the workforce.
We shared our family-friendly policies and fl exible
work arrangements to ease their transition back to the
workplace. Two candidates were recruited to undergo
four-month paid job trials to help them resume work.
Through a collaboration with Singapore's Ministry
of Social and Family Development, we also provided
placements for youths-at-risk for work trials, ranging from
three to six months, to integrate them back into society.
Celebrating International Women’s Day, Bangkok • Thailand
Celebrating Women
FPL celebrated International Women’s Day globally with
month-long activities to show appreciation to our female
employees. We featured a weekly ‘Women in Leadership
Series’ on Workplace, panel discussions in Australia and
Singapore and wellness perks for our female colleagues.
Employees in Thailand sent appreciation messages
to their female colleagues, while the UK team hosted
Olympic gold-medallist Kate Richardson Walsh as an
inspirational speaker.
During the year, an FPA Sustainability Manager was
accepted into the highly competitive Women4Climate
Mentorship Programme to be mentored by Emma
Herd, CEO of Investor Group on Climate Change, in the
Sydney cohort of C40's global mentorship programme.
The programme matches committed leaders from
the business sector, international organisations and
community organisations with emerging female leaders.
The aim of the Women4Climate Mentorship Programme
is to support emerging women leaders to become expert
infl uencers while mobilising others to be infl uential in
their eff orts to accelerate action on climate change.
Girls in Property Programme at Central Park Mall, Sydney,
New South Wales • Australia
P122_Focusing on People.indd 124
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Annual Report 2019 125
Skills & Leadership
Training and development present prime opportunities
for our people to future-proof their careers and upgrade
their professional skills to stay relevant. We provide
a comprehensive range of learning and development
programmes, developed by our global network of
in-house specialists, to support personal and career
advancement that in turn leads to greater job satisfaction
and motivation.
In FY19, we dedicated more than 2.0% of our payroll cost
to learning and development. Globally, our employees
clocked an average of 36 training hours each. We will
strive to achieve 40 hours per employee per year, going
forward. Approximately 40% of total training hours were
recorded by executive employees, while non-executives
accounted for 60%. This year, we started collecting
training data by gender and recorded a balanced
36 training hours received by both male and female
employees.
This year, we further improved the facilities in FPL’s
Learning Academy by enhancing the internal broadcast
capabilities. We provided webcast solutions for live
streaming to enable our employees to reach out and
interact with our global workforce through events such
as Group townhalls and learning seminars or talks. During
the year, Frasers Hospitality launched its e-learning
academy to off er more than 150 online courses endorsed
by the internationally renowned Institute of Hospitality to
strengthen staff hospitality skills.
Apart from formal training, we also conduct other forms
of knowledge sharing sessions. These include the Lunch
and Learn Series for peer learning across the business; the
Heart-to-Heart Talk Series for our younger colleagues in
Singapore to engage with our senior leaders; The Heart
of Service foundational skills programme to help our
frontline colleagues refi ne their service delivery skills, and
the TEN Talks collection of short videos contributed from
Australian employees to share their knowledge, expertise
and experience.
A conversation with Ambassador Chan Heng Wing • Singapore
Sustainability Strategy Workshop, Bangkok • Thailand
300,000
250,000
200,000
150,000
100,000
50,000
0
Training Hours
57
44
45
Training Hours by Gender
60
150,000
36
36
50
50
32
36
40
100,000
60,351
77,337
187,818
117,183
248,169
194,520
FY18
FY19
FY18
FY19
FY18
FY19
Executive
| Non-Executive
|
All Employees
Total | Average
30
20
10
0
50,000
0
92,460
102,060
Male
Female
FY19
Total | Average
40
30
20
10
0
P122_Focusing on People.indd 125
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126 Frasers Property Limited
Sustainability Report • Focusing on People
Health & Well-being
A safe and healthy working environment gives security
to our people and establishes trust in our business.
We have introduced and implemented a workplace
safety management system across all critical business
operations and monitor closely compliance with
procedures and policies involving risk, incident reporting,
contractor management, health and safety auditing. The
system helps us to identify potential hazards, monitor
risks and performance, conduct audits and continually
improve our safety standards.
Close to 90% of our commercial and retail properties in
Singapore are certifi ed with OHSAS 18001 and bizSAFE
Star by the Workplace Safety and Health Council (WSHC).
More than 80% of our Singapore commercial properties
are also certifi ed bizSAFE Partners by the WSHC. In
Australia, our residential, retail, commercial and industrial
units are certifi ed with AS/NZS 4801 (Australia/New
Zealand Standard for Occupational Health & Safety).
We monitor closely the safety of both our staff and
contractors’ staff working at our operating assets and
development sites. In FY19, we recorded zero fatalities
and strong improvements in our health and safety
performance, especially in our Singapore and Australia
development projects. In our Singapore development
project, lost-time injury rate and severity rate of 1.3 and
0.4 were achieved, respectively. The lost-time injury rate
and severity rate remains below Singapore's national
average of 1.5 and 115 respectively for the construction
sector. In our Australia development projects, we
achieved 0.9 and 8.8, respectively. Overall, we saw a
reduction of 45% and 87% year-on-year, respectively, in
lost-time injury rate and severity rate. In Singapore, we
recorded one near-miss incident and no incidences of
occupational diseases. Our performance is a testament to
the extensive health and safety initiatives implemented
across our business.
For completed properties we own and/or manage, we
improved further on our safety procedures and follow up
with preventive measures. The table below shows the
safety records in our key locations.
Completed Properties
No. of fatalities
No. of lost-time injuries
No. of lost days
Lost-time Injury rate
Severity rate
Corporate
Offi ce
Singapore
Australia
China
UK
Vietnam
Hospitality
FY18
FY19
FY18
FY19
FY18
FY19
FY18
FY19
FY18
FY19
FY18
FY19
FY18
FY19
0
0
0
0
0
0
1
4
0.3
1.3
0
3
16
1.2
6.2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
N/A
N/A
N/A
N/A
N/A
0
0
0
0
0
N/A
N/A
N/A
N/A
N/A
0
0
0
0
0
0
35
0
28
939
1,162
2.3
1.7
62.6
72.4
Safety briefi ng at Seaside Residences development site • Singapore
1
2
FY18 and FY19 data coverage for corporate offi ce: Singapore, China, Australia
FY18 health and safety data for our hospitality business has been restated to include properties which the data were not made available during the
reporting period
3 Lost-time injury rate = No. of Workplace Accidents Reported / No. of Manhours Worked x 1,000,000
4 Severity rate = No. of Man Days Lost to Workplace Accidents / No. of Manhours Worked x 1,000,000
P122_Focusing on People.indd 126
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Annual Report 2019 127
In Singapore, we engaged Aetos, a security consultant
to conduct a safety audit on all our retail and offi ce
properties. The audit focused on maintenance and
improvement measures for each of the malls. One of the
recommendations we adopted was installing bollards
at our drop-off points to prevent car-ramming to ensure
pedestrian safety at our malls.
‘Walk-the-Mall’ was launched at Waterway Point,
Singapore in February 2019 as an initiative to identify
safety risks and encourage open conversations on safety
issues in the work environment. During the walks, senior
management of Frasers Property Singapore (FPS) and
the centre management team would tour the mall
together, explore and discuss improvements to the safety
standards for our employees. The second walk was held at
Northpoint City in May 2019.
Safety Risk Management
In Australia, we launched ‘Our Risk Standards’ in April this
year in all offi ces and at operational sites. We worked
with employees, industry and consultants to develop
engaging and proactive products to support our teams
in managing our most high-risk activities. These products
include posters, animation videos and magnets to keep
safety controls at the front of mind. Each construction site
had its own launch event and was provided with materials
for display and use, prompting one of our contractors to
take a copy and look to infl uence their own organisation to
make improvements. The standards apply to all employees,
contractors and visitors. The controls are monitored closely
and applied when conducting high-risk activities.
In the UK, we introduced a Health and Safety Policy, a
signifi cant step to reinforce our commitment to health
and safety. Our management team, asset management
team, and residential concierge team are certifi ed by the
Institution of Occupational Safety and Health to support
the implementation of the policy across the business.
Senior management from FPS 'Walk-the-Mall'
at Northpoint City • Singapore
SGSecure Roadshow
at Northpoint City • Singapore
store in the mall, involving offi cers from the Singapore
Police Force and the Singapore Civil Defence Force as well
as our mall tenants and employees. At the roadshows,
visitors with life-saving skills such as cardio-pulmonary
resuscitation, defi brillation, basic fi re-fi ghting, fi rst-
aid and psychological fi rst aid could sign up to become
SGSecure Responders.
Safety Culture and Outreach
The Workplace Safety & Health Award was launched
in February this year to recognise staff in Singapore for
their outstanding eff orts and contributions in fostering
a culture of safety and health in our workplace. The fi rst
award went to a Senior Building Manager at Northpoint
City to recognise a safety improvement solution for
service staff who need to access areas at height.
In Singapore, FPS is part of the SGSecure movement, a
national movement focused on raising corporate and
public awareness on terrorism threats. Northpoint City
hosted the launch of the SGSecure Roadshow themed
‘Our Response Matters. We Make SGSecure’. The
roadshow aimed to show the public ways to prevent, deal
with and recover from a terrorist attack. The roadshow
featured a live simulation of a terror attack at a clothing
P122_Focusing on People.indd 127
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128 Frasers Property Limited
Sustainability Report • Focusing on People
Work-Life Balance
FPL cares and strives to create balance in our people’s
lives and work. We invest in employee well-being as part
of our engagement with our employees.
In Australia and Singapore, employees are given the
choice of fl exible work arrangements such as working
from home. This allows employees, especially caregivers
with children or elderly parents, to balance their work and
responsibilities at home. In Singapore, we have designated
every last Friday of the school semester as Eat With Your
Family Day, where employees are encouraged to leave
work early to spend quality time over dinner with their
families.
FPL's Annual Family Day at Alexandra Technopark • Singapore
Safety Accolades
In the UK, FPL and its main project contractor,
Galliford Try plc, received a Silver Award for Nine
Eastfi elds at this year’s Considerate Constructors
Scheme National Site Awards. The Considerate
Constructors Scheme’s National Site Awards Scheme
looks at the measures a site has put in place to be
more considerate towards local neighbourhoods, the
public, the workforce, and the environment.
In Australia, we have been recognised by the Offi ce
of the Federal Safety Commissioner (OFSC) for having
‘Demonstrated a track record of good performance’.
The Federal Safety Commissioner works with industry
and government stakeholders to achieve the highest
possible workplace health and safety standards on
Australian building and construction projects. The
OFSC commissioner also recognised FLT’s consistent
and robust safety performance, deeming it a low-
risk contractor and waiving future requirements to
undertake the OFSC reaccreditation process.
Staff Wellness
For three years running, we dedicated the month
of August as ‘Health and Safety Month’ at FPL. This
year’s theme, ‘LIVE.WORK.PLAY.SAFE’ sought to
enable and empower our employees to stay safe
day-to-day at all times. Throughout the month, we
organised various activities for our employees in
Singapore. These included health screenings, a global
wellness challenge, a walk-jog outing, workstation
exercises, a fi lm on emotional well-being, a talk on
healthy eating, and Workplace sharing on health
and safety tips. More than 1,000 staff and external
parties, including tenants and guests from over 110
properties, participated in the month's activities.
Since July 2019, the fi rst week of every odd-
numbered month has been designated as ‘Weeks of
Wellness’ to empower our employees to take better
care of themselves, both physically and mentally.
These are themed weeks focusing on diff erent
aspects of healthy lifestyles. Six themes have
been determined through to 2020. Relevant tips,
articles and videos are shared on Workplace to raise
awareness among staff on healthy living.
On 15 June 2019, the Group organised the annual
Family Day in Alexandra Technopark for more than
200 employees. The Family Day was centred around
the Group’s ‘Kampung’ spirit to create an atmosphere
of togetherness, for our employees to interact
and bond with their families and colleagues. The
event provided a wide variety of food and snacks,
entertainment and retro kampung style games, with
S$10,000 worth of Frasers Property Digital Gift card
prizes given out.
P122_Focusing on People.indd 128
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Annual Report 2019 129
Community Connectedness
We recognise the importance of utilising our expertise and resources to infl uence how the community is designed, formed
and managed. It is our priority to increase the social value of our communities through strategic stakeholder partnerships,
volunteerism and corporate philanthropy. In Australia, we implemented a Corporate Social Responsibility Policy last year
to refl ect the business’s commitment and responsibility to customers, stakeholders, employees and the communities.
Inclusive and Enhanced Retail Spaces
In Singapore, we launched 'Inclusive Spaces' as an
innovation challenge to bring together young people,
our employees and members of community groups to
co-design strategies to create more inclusive spaces at
our malls. This year’s focus was on mall inclusivity for
persons with physical disabilities. Working in teams, the
participants created innovative solutions over two weeks
before presenting their proposals to a judging panel.
‘Blurring Social Barriers’ was the winning proposal, which
used creative and barrier-free furniture set in an open space
concept. Mall patrons with disabilities would be able to
pre-book a table digitally, while mall tenants could extend
their holding capacity during peak hours in a comfortable
and inclusive manner.
In another creative eff ort, we gathered 48 employees from
eight malls in Singapore for a placemaking challenge aimed
at enhancing customers’ retail experiences. Participating
teams needed to pitch their ideas, including budgeting
and implementation costs, on how to make the mall a
place where people would want to visit and linger. The
shortlisted ideas were implemented at Bedok Point and
Waterway Point.
FPL's Annual Family Day at Alexandra Technopark • Singapore
'Inclusive Spaces' innovation challenge • Singapore
P122_Focusing on People.indd 129
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130 Frasers Property Limited
Sustainability Report • Focusing on People
Stakeholder Satisfaction
As we own and manage various properties, we seek our
customers’ feedback to develop and design better places.
We conduct annual surveys to gauge the satisfaction of
our customers and tenants to identify and manage their
expectations to remain competitive in the industry.
Our FY19 Office Tenants Survey in Singapore found
that our tenants’ satisfaction level increased to 98%,
as compared to 97% in FY18. The annual customer
satisfaction survey is part of our ongoing effort to foster
closer partnerships with our commercial properties’
stakeholders.
Frasers Hospitality Guests’ Experience Survey collected
95,950 guest reviews and ratings. This year saw
improvements in positive reviews, popularity score and
performance score.
In FY19, we managed to capture over 90% of our
homebuyers’ experience in Singapore using a digital
platform. Our home collection experience and live-in
experience averaged 85% and 72%, respectively. The
surveys showed that our homebuyers appreciated the
experience with us throughout the process of owning a
house.
To gauge satisfaction levels among industrial tenants,
FPT rolled out its first customer experience and
relationship assessment this year. This survey aimed to
ensure our tenants would continue to renew their leases
or expand their rented space. We achieved average
ratings of 76% and 83% for overall leasing experience
and service standards. Moving forward, this satisfaction
survey will be conducted annually to ensure customers
are continuously satisfied with the quality of space and
services provided.
Office Tenants’ Experience (%)
Hospitality Guests’ Experience (%)
100
80
60
40
20
0
70
70
67
78
72
24
24
29
19
26
100
80
60
40
20
0
90
91
90
80
82
83
88
88
90
FY15
FY16
FY17
FY18
FY19
Positive reviews
Popularity score
Performance score
Satisfied to Very Satisfied | Neutral to Satisfied
FY17 | FY18 | FY19
Homebuyers’ Experience (%)
Industrial Tenants' Experience (%)
100
80
60
40
20
0
78
82
83
87
85
76
78
78
76
72
100
80
60
40
20
0
76
83
How was your home
collection experience?
How is everything?
Overall Leasing Experience
Overall Performance by Team
FY15 | FY16 | FY17 | FY18 | FY19
FY19
P122_Focusing on People.indd 130
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Annual Report 2019 131
Local Community Partnerships
In Australia, we partnered with Resilient Melbourne
and Wyndham City Council to identify opportunities for
participatory development models that would enhance
social connectedness in Mambourin. In the partnership
which lasts through 2022, FPA is engaging with local
aboriginal elders, Co-Design Studio, Neighbourlytics
and the Foundation for Young Australians to support
community-led placemaking, use analytical tools that
will strengthen Mambourin’s new community, and
build multi-cultural and intergenerational leadership
and connections. Future residents of Mambourin will
be involved early in the development of the site with a
view to building the community from the ground up and
strengthening social cohesion.
Our Reconciliation Action Plan in Australia celebrated its
fi rst anniversary in July 2019. The plan aims to collaborate
with Australia’s Aboriginal and Torres Strait Islander
People to design communities and projects that take into
consideration the interest of the aboriginal population. It
charts our commitments until July 2020, with 59 targets in
the pipeline. Within the fi rst year, we achieved 37 of these
targets and also tripled our spend on indigenous vendors
from A$50,000 to A$150,000 in the last fi nancial year.
Each offi ce in Australia held an event to celebrate National
Reconciliation Week in May 2019.
In the UK, Farnborough Business Park is a founding
member of The Community Matters Partnership Project
(CMPP). CMPP is a Farnborough-based charity that
addresses social needs in the local area by harnessing
the resources, skills and manpower of local businesses
to support local charities, schools and community
groups who are in need. CMPP runs bespoke projects,
organises volunteering and raises funds. Under this
eff ort, Farnborough Business Park hosted a Workplace
Experience Day where underprivileged children from
underperforming secondary schools, who were unlikely to
be exposed to the working world, visited fi ve businesses
in the park to learn about their industries, the type
of roles they off ered and the benefi ts of working for
these companies. The feedback from the children was
exceptionally positive.
In Thailand, One Bangkok held a two-month ‘Future
of Bangkok’ art programme for 477 students from
Plukchit School, Klongtoey Wittaya School and Sunee
Pittaya School located in the Rama IV area. Selected
guest teachers were brought in to educate participating
students on specifi c art skills and techniques to help them
develop art pieces of what they envisioned Bangkok to
look like in the future. One Bangkok also hosted an awards
ceremony to present scholarships to winning students.
The PARQ was one of the main sponsors of the Half
Marathon Bangkok 2019. The event was held to honour
Her Majesty Queen Sirikit during her 87th birthday. The
event also raised funds for the Queen Sirikit Centre for
Breast Cancer, King Chulalongkorn Memorial Hospital and
Thai Red Cross Society.
In Singapore, Alexandra Technopark commemorated the
nation’s 54th year of independence with a pop-up booth to
reimagine Alexandra’s history and heritage through four
experiential activities in August 2019. Through interactive
exhibitions, staff , customers, tenants and nearby
communities explored Alexandra’s industrial heritage. Past
residents from Alexandra community and volunteer guides
from the My Community heritage group conducted free
monthly tours around the Labrador and Alexandra vicinity
to share the area’s heritage with visitors.
'The Future of Bangkok' art programme, Bangkok • Thailand
P122_Focusing on People.indd 131
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132 Frasers Property Limited
Sustainability Report • Focusing on People
Community Support
In addition to creating sustainable spaces and
communities, we contribute to society, both fi nancially
and in-kind. We are committed to building resilience
in communities where we operate. In FY19, the Group
contributed over S$1 million of in-kind and monetary
donations, and 7,600 volunteer hours to various charities
and community groups. We have also carried out more
than 480 community investment activities throughout
the Group globally.
This year, we presented 89 Frasers Property Bursary
Awards to our colleagues' children, the highest number of
awards given out to date. Since 2014, when the bursary
was fi rst established, we have given out 349 awards.
In Australia, we continued supporting Smiling Mind, a
non-profi t organisation that aims to enhance mental
health and well-being through mindfulness. As at
September 2019, more than 36,540 school children
across 44 schools country-wide had benefi tted from
this charitable partnership. In addition, the partnership
trained 1,827 teachers and is now focusing on organising
workshops to help parents practise mindfulness.
We also supported the community through in-kind
donations. Since April 2018, Alexandra Point has adopted
donation boxes from The Food Bank Singapore. Over
122 kg worth of edible products were collected from
Alexandra Point's tenants. With the kind donations of
our shoppers, Bedok Point and YewTee Point jointly
contributed 800 kg of rice to Shan You Wellness
Centre with rice repacked into rations for the old and
underprivileged in the neighbourhood. In August 2019,
our One Bangkok project continued to build goodwill with
its local communities by contributing nine air-conditioning
units to Plookchit School.
Our staff joined in the spirit of giving by volunteering their
time to serve the community. One team of volunteers
from FCOT packed almost 200 bags of food rations for
benefi ciaries of the Shan You Wellness Community.
Similarly, other volunteers in Singapore packed and
distributed 200 food bundles collected across 10 malls
to vulnerable seniors living in one- or two-room fl ats in
September 2019. Another team, from Group Internal Audit,
brought lunar new year festive cheer to the intellectually
disabled at MINDS Eunos, by assisting them in baking
peanut cookies under the MINDS’ ‘Bake and Sing with Me
Too!’ programme.
In Australia, 25 colleagues from FPA in Sydney
volunteered to clean up Coogee Beach with Take 3 for
the Sea. This event was part of Plastic Free July, a global
movement that helps millions of people be part of the
solution to plastic pollution.
FPA staff cleaned up Coogee Beach in Sydney, New South Wales • Australia
Frasers Property Bursary Awards • Singapore
P122_Focusing on People.indd 132
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Annual Report 2019 133
Industry Sharing
Across the year, FPL was invited to several speaking engagements – including media interviews, and tertiary and
industry conferences – to share our perspectives and experiences on the real estate industry and sustainability. Some
of the topics our representatives spoke about included business trends, clean technology, the evolution of retail,
resilient buildings and our sustainability journey. As a forerunner in green fi nancing, we also shared our viewpoint on
sustainability-linked loans and how it is a natural extension of our sustainability focus. Among the interviews we gave
and events we participated in were:
Singapore
• APLMA Green & Sustainable Finance Conference
Thailand
• Bloomberg ASEAN Business Summit
Thailand
• Forbes Global CEO Conference
Australia
• Future Cities Summit
• Germany Logistics Conference
Germany
• Green Building Council Australia’s Green Building Day Australia
• MONEY FM 89.3 Interview
• National Clean Technologies Conference
• Property Council of Australia - Retail Outlook
• PWC Asia Pacifi c Real Estate Conference 2018 Singapore
Singapore
• REITAS Conference 2019
Australia
• Savills Australia & New Zealand 'Shops & Sheds'
Singapore
Australia
Australia
Bloomberg Asean Business Summit, Bangkok • Thailand
National Clean Technologies Conference, Brisbane • Australia
Interview with MONEY FM89.3 on Green Financing • Singapore
133v2_Focusing on People12(11).indd 133
13/12/19 5:45 PM
134 Frasers Property Limited
GRI Content Index
GRI Standards
2016
Disclosure
Number
Disclosure
Title
Universal Standards
Organisational Profile
Section and
Page Reference/Notes
Name of the organisation
Frasers Property Limited
Activities, brands, products, and services Corporate Narrative, pg. 2
102-1
102-2
102-3
102-4
102-5
Location of headquarters
Location of operations
Ownership and legal form
102-6
Markets served
102-7
Scale of the organisation
Our Businesses, pg. 4-5
Our Multi-national Presence, pg. 6-7
Corporate Information, Inside back cover
Our Multi-national Presence, pg. 6-7
Corporate Narrative, pg. 2
Our Businesses, pg. 4-5
Our Milestones, pg. 8-9
Group Structure, pg. 10
Corporate Narrative, pg. 2
Our Businesses, pg. 4-5
Business Review pg. 38-91
Corporate Narrative, pg. 2
Our Businesses, pg. 4-5
Financial Highlights, pg. 11
Focusing on People – Diversity & Inclusion,
pg. 122-123
102-8
Information on employees and other
workers
Focusing on People – Diversity & Inclusion, pg. 122-123,
Health & Well-being, pg. 126
102-9
Supply chain
102-10
Significant changes to organisation and
its supply chain
102-11
Precautionary principle or approach
GRI 102: General
Disclosures
102-12
External initiatives
102-13
Membership of associations
Managing Sustainability – Stakeholder Engagement,
pg. 102-103
Consuming Responsibly – Materials & Supply Chain,
pg. 120
Focusing on People – Health & Well-being, pg. 126
About This Report – Report Scope, pg. 97
FPL does not specifically refer to the precautionary
approach when managing risk; however, our
management approach is risk-based, and
underpinned by our internal audit framework.
Acting Progressively – Responsible Investment,
pg. 111
Acting Progressively – Responsible Investment,
pg. 111
Strategy
102-14
Statement from senior decision-maker
Board Statement, pg. 98
Ethics and Integrity
102-16
Values, principles, standards, and norms
of behaviour
Acting Progressively – Risk-based Management,
pg. 106
Governance
102-18
Governance structure
Stakeholder Engagement
102-40
List of stakeholder groups
102-41
Collective bargaining agreements
102-43
Approach to stakeholder engagement
102-44
Key topics and concerns raised
Corporate Information, Inside back cover
Board of Directors, pg. 12-18
Group Management, pg. 19-23
Managing Sustainability – Sustainability
Governance, pg. 101
Corporate Governance, pg. 143-173
Managing Sustainability – Stakeholder Engagement,
pg. 102
There are no collective bargaining agreements in
place.
Managing Sustainability – Stakeholder Engagement,
pg. 102-103
Managing Sustainability – Stakeholder Engagement,
pg. 102-103
P134_GRI Index.indd 134
10/12/19 7:56 PM
GRI Standards
Disclosure
Disclosure
2016
Number
Title
Universal Standards
Organisational Profile
Section and
Page Reference/Notes
Name of the organisation
Frasers Property Limited
Activities, brands, products, and services Corporate Narrative, pg. 2
102-1
102-2
102-3
102-4
102-5
Location of headquarters
Location of operations
Ownership and legal form
102-6
Markets served
102-7
Scale of the organisation
Our Businesses, pg. 4-5
Our Multi-national Presence, pg. 6-7
Corporate Information, Inside back cover
Our Multi-national Presence, pg. 6-7
Corporate Narrative, pg. 2
Our Businesses, pg. 4-5
Our Milestones, pg. 8-9
Group Structure, pg. 10
Corporate Narrative, pg. 2
Our Businesses, pg. 4-5
Business Review pg. 38-91
Corporate Narrative, pg. 2
Our Businesses, pg. 4-5
Financial Highlights, pg. 11
Focusing on People – Diversity & Inclusion,
pg. 122-123
102-8
Information on employees and other
Focusing on People – Diversity & Inclusion, pg. 122-123,
workers
Health & Well-being, pg. 126
102-9
Supply chain
Managing Sustainability – Stakeholder Engagement,
pg. 102-103
pg. 120
Consuming Responsibly – Materials & Supply Chain,
Focusing on People – Health & Well-being, pg. 126
102-10
Significant changes to organisation and
About This Report – Report Scope, pg. 97
its supply chain
102-11
Precautionary principle or approach
FPL does not specifically refer to the precautionary
GRI 102: General
Disclosures
approach when managing risk; however, our
management approach is risk-based, and
underpinned by our internal audit framework.
102-12
External initiatives
Acting Progressively – Responsible Investment,
102-13
Membership of associations
Acting Progressively – Responsible Investment,
pg. 111
pg. 111
Strategy
102-14
Ethics and Integrity
Governance
Statement from senior decision-maker
Board Statement, pg. 98
102-16
Values, principles, standards, and norms
Acting Progressively – Risk-based Management,
of behaviour
pg. 106
102-18
Governance structure
Corporate Information, Inside back cover
Board of Directors, pg. 12-18
Group Management, pg. 19-23
Managing Sustainability – Sustainability
Governance, pg. 101
Corporate Governance, pg. 143-173
Stakeholder Engagement
102-40
List of stakeholder groups
Managing Sustainability – Stakeholder Engagement,
102-41
Collective bargaining agreements
There are no collective bargaining agreements in
102-43
Approach to stakeholder engagement
Managing Sustainability – Stakeholder Engagement,
102-44
Key topics and concerns raised
Managing Sustainability – Stakeholder Engagement,
pg. 102
place.
pg. 102-103
pg. 102-103
Annual Report 2019 135
GRI Standards
2016
Disclosure
Number
Disclosure
Title
Universal Standards
Reporting Practice
Section and
Page Reference/Notes
Entities included in the consolidated
financial statements
Group Structure, pg. 10
Notes to the Financial Statements, pg. 197-349
102-45
102-46
Defining report content and topic
Boundaries
102-47
List of material topics
102-48
Restatements of information
GRI 102: General
Disclosures
102-49
Changes in reporting
About This Report – Report Scope, pg. 97
Our Sustainability Framework, pg. 99
Managing Sustainability – Materiality Assessment,
pg. 104-105
Managing Sustainability – Materiality Assessment,
pg. 104-105
Restatement of Green Star certification data in
page 108 to be consistent on computational basis.
Restatements of energy, GHG emissions and water
data in pages 117-118 due to change in portfolio
coverage and updates on carbon emission factors
for some countries.
Restatement of health and safety data in page 126
due to updates in portfolio coverage in FY18.
Managing Sustainability – Materiality Assessment,
pg. 104-105
This year, additional disclosures are reported.
102-50
102-51
102-52
102-53
102-54
102-55
102-56
Reporting period
About This Report, pg. 97
Date of most recent report
December 2018
Reporting cycle
Annual
Contact point for questions regarding
the report
Claims of reporting in accordance with
GRI Standards
GRI content index
External assurance
About This Report – Feedback, pg. 97
About This Report, pg. 97
GRI Content Index, pg. 134-137
We have not sought external assurance on this
data; however we intend to review this stance in the
future.
Material Topics
Management Approach
GRI 103:
Management
Approach
103-1
Explanation of the material topic and its
boundary
Managing Sustainability - Materiality Assessment,
pg. 104-105
Topic-specific Standards
Economic Performance
GRI 103:
Management
Approach
GRI 201:
Economic
Performance
Anti-corruption
GRI 103:
Management
Approach
GRI 205: Anti-
corruption
103-2
103-3
201-1
103-2
103-3
205-3
Environmental Compliance
103-2
103-3
307-1
GRI 103:
Management
Approach
GRI 307:
Environmental
Compliance
The management approach and its
components
Evaluation of the management
approach
Direct economic value generated and
distributed
FPL Group Strategy, pg. 2
Financial Highlights, pg. 11
Financial Statements, pg. 174-349
The management approach and its
components
Evaluation of the management
approach
Acting Progressively – Risk-based Management,
pg. 106-107
Confirmed incidents of corruption and
actions taken
The management approach and its
components
Evaluation of the management
approach
Non-compliance with environmental
laws and regulations
Acting Progressively – Risk-based Management,
pg. 106-107
P134_GRI Index.indd 135
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136 Frasers Property Limited
GRI Content Index
GRI Standards
2016
Disclosure
Number
Disclosure
Title
Section and
Page Reference/Notes
Topic-specific Standards
Marketing and Labelling
GRI 103:
Management
Approach
GRI 417:
Marketing and
Labelling
103-2
103-3
417-3
The management approach and its
components
Evaluation of the management
approach
Incidents of non-compliance concerning
marketing communications
Energy and Emissions
GRI 103:
Management
Approach
GRI 302: Energy
GRI 305:
Emissions
Water
GRI 103:
Management
Approach
103-2
103-3
302-1
302-3
305-2
305-4
103-2
103-3
The management approach and its
components
Evaluation of the management
approach
Energy consumption within the
organisation
Energy intensity
Energy indirect (Scope 2) GHG emissions
GHG emissions intensity
The management approach and its
components
Evaluation of the management
approach
GRI 303: Water
303-1
Water withdrawal by source
Employment, Training and Education
GRI 103:
Management
Approach
GRI 401:
Employment
GRI 404: Training
and Education
103-2
103-3
401-1
404-1
404-2
404-3
The management approach and its
components
Evaluation of the management
approach
New employee hires and employee
turnover
Average hours of training per year per
employee
Programmes for upgrading employee
skills and transition assistance
programmes
Acting Progressively – Risk-based Management,
pg. 106-107
Consuming Responsibly – Energy & Carbon,
pg. 116-117
Consuming Responsibly – Water, pg. 118
Water consumed is from purchased utilities, with
rainwater harvested for non-potable uses in certain
properties.
Focusing on People – Diversity & Inclusion, pg. 122,
Skills & Leadership, pg. 125
Focusing on People – Diversity & Inclusion, pg. 122
Focusing on People – Skills & Leadership, pg. 125
Percentage of employees receiving
regular performance and career
development reviews
Managing Sustainability – Stakeholder Engagement,
pg. 102-103,
Focusing on People – Diversity and Inclusion, pg 122
Labour/Management Relations
GRI 103:
Management
Approach
GRI 402: Labour/
Management
Relations
103-2
103-3
402-1
Occupational Health and Safety
GRI 103:
Management
Approach
GRI 403:
Occupational
Health and Safety
Local Communities
GRI 103:
Management
Approach
GRI 413:
Local
Communities
103-2
103-3
403-1
403-2
103-2
103-3
413-1
The management approach and its
components
Evaluation of the management
approach
Minimum notice periods regarding
operational changes
The management approach and its
components
Evaluation of the management
approach
Workers representation in formal joint
management–worker health and safety
committees
Types of injury and rates of injury,
occupational diseases, lost days, and
absenteeism, and number of work-
related fatalities
The management approach and its
components
Evaluation of the management
approach
Operations with local community
engagement, impact assessments,
and development programmes
Focusing on People – Diversity & Inclusion, pg. 122
This is currently not covered in Group-wide
collective agreements. The notice period varies.
Focusing on People – Health & Well-being, pg. 126
Acting Progressively – Risk-based Management,
pg. 106-107
FPL has a Health and Safety senior management
committee.
Focusing on People – Health & Well-being, pg. 126
Focusing on People – Community Connectedness,
pg. 129-133
P134_GRI Index.indd 136
10/12/19 7:56 PM
GRI Standards
2016
Disclosure
Number
Disclosure
Title
Additional Disclosures
Emerging Topic – Anti-Competitive Behaviour
GRI 103:
Management
Approach
GRI 206: Anti-
competitive
behaviour
103-2
103-3
Emerging Topic – Materials
GRI 103:
Management
Approach
103-2
103-3
The management approach and its
components
Evaluation of the management
approach
The management approach and its
components
Evaluation of the management
approach
GRI 301: Materials 301-1
Materials used by weight or volume
Emerging Topic – Biodiversity
GRI 103:
Management
Approach
GRI 304:
Biodiversity
103-2
103-3
304-1
The management approach and its
components
Evaluation of the management
approach
Operational sites owned, leased,
managed in, or adjacent to, protected
areas and areas of high biodiversity
value outside protected areas
Emerging Topic – Effluents and Waste
GRI 103:
Management
Approach
103-2
103-3
The management approach and its
components
Evaluation of the management
approach
GRI 306: Effluents
and Waste
306-2
Waste by type and disposal method
Emerging Topic – Diversity and Equal Opportunity
GRI 103:
Management
Approach
GRI 405: Diversity
and Equal
Opportunity
103-2
103-3
405-1
The management approach and its
components
Evaluation of the management
approach
Diversity of governance bodies and
employees
Annual Report 2019 137
Section and
Page Reference/Notes
Acting Progressively – Risk-based Management,
pg. 106-107
Consuming Responsibly – Materials & Supply Chain,
pg. 120
Consuming Responsibly – Biodiversity, pg. 121
Consuming Responsibly – Waste, pg. 119
Board of Directors, pg. 12-18
Group Management, pg. 19-23
Focusing on People – Diversity & Inclusion,
pg. 122-124
Notes
Energy and Water Reporting Scope
•
•
•
Electricity consumption and GHG emissions reported is inclusive of all completed properties that we own and/or manage with significant operational
control in FY19, which are the landlord areas for commercial properties in Singapore, Australia, China, Vietnam and the UK, and total area for serviced
residences and hotels
Energy and GHG intensities exclude both newly completed properties and properties divested within FY19
The GHG emission factors are from Energy Market Authority – Singapore Energy Statistics 2019, Australia National Greenhouse Accounts Factors 2018,
Climate Transparency – G20 Brown to Green Report 2017 for Spain, Hungary, Turkey, India, Indonesia, Japan, South Korea, France, Switzerland and Saudi
Arabia, UK Government GHG Reporting 2017, 2018 and 2019, Institute for Global Environmental Strategies – List of Grid Emission Factors 2019 for United
Arab Emirates, International Energy Agency – Key World Energy Statistics 2010 for Bahrain and Qatar, Baseline Emission Factors for Regional Power Grids
in China 2017, Study on Grid Connected Baselines in Malaysia 2014, National Grid Emission Factor for National Emission Grid for Luzon-Visayas Grid 2015-
2017 for Philippines, Thailand Greenhouse Gas Management Organisation 2017, Ministry of Natural Resources and Environment Vietnam 2017, Association
of Issuing Bodies for Germany, Clean Development Mechanism – Grid Emission Factor for West African Power Pool 2017 for Nigeria, International Energy
and Environment Foundation – International Journal of Energy And Environment Issue 4, 2013 for Oman
• Water consumption reported is inclusive of all completed properties that we own and/or manage with significant operational control in FY19, which are
the landlord areas for commercial properties in Singapore, Australia, China, Vietnam and the UK, and total area for serviced residences and hotels
• Water intensities exclude both newly completed properties and properties divested within FY19
Embodied Carbon Reporting Scope
•
The GHG emissions factors are from Energy Market Authority – Singapore Energy Statistics 2019 for electricity, UK Government GHG Reporting, 2019 for
gas and fuel, and Inventory of Carbon & Energy (ICE) Version 2.0 and 3.0 for building materials
P134_GRI Index.indd 137
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138 Frasers Property Limited
Awards and
Accolades
Frasers Property Limited
EdgeProp Singapore Excellence
Awards 2018 – Top Developer
Award
Frasers Property Limited
Singapore Corporate Awards – Best
Managed Board Award in the large-
cap category – Bronze
Frasers Property Limited
Frasers Property Singapore
International Council of Shopping
Centers, 2018 Asia-Pacfic Shopping
Center Awards – Emerging Digital
Technology – Gold Award
Frasers Property Singapore, “Frasers
Galactic Passport’ campaign
Partners of Labour Movement
Award 2018 by National Trades
Union Congress (NTUC)
Frasers Property Singapore
SRA Retail Awards 2019 – Best
Retail Event of the Year
Frasers Property Singapore, “A Beary
Merry Christmas” campaign
SRA Retail Awards 2019 –
Best Efforts in CSR
Frasers Property Singapore, “It Pays
to Play” campaign
Residential
BCA Awards – Green Mark GoldPLUS
• Rivière
EdgeProp Singapore Excellence
Awards 2018 – Design Excellence
Award
• RiverTrees Residences
• Seaside Residences
EdgeProp Singapore Excellence
Awards 2018 – Landscape
Excellence Award
RiverTrees Residences
EdgeProp Singapore Excellence
Awards 2018 – Sustainability
Excellence Award
Seaside Residences
EdgeProp Singapore Excellence
Awards 2018 – Top Development
Excellence Award
• RiverTrees Residences
• Seaside Residences
Singapore Property Awards 2018
by FIABCI Singapore – Residential,
High-rise category
RiverTrees Residences
Retail and Commercial
BCA Awards – Design and
Engineering Safety Excellence
Frasers Tower
BCA Awards – Green Mark
Certification
YewTee Point
BCA Awards – Green Mark Gold
• 51 Cuppage Road
• China Square Central
• Alexandra Technopark
BCA Awards – Green Mark GoldPLUS
• Northpoint City
• Waterway Point
BCA Awards – Green Mark Platinum
• Alexandra Point
• Causeway Point
• Frasers Tower
BCA Awards – Universal Design
GoldPLUS
Waterway Point
bizSAFE Level Star Certification
by Workplace Safety and Health
Council
• 51 Cuppage Road
• Alexandra Point
• Alexandra Technopark
• China Square Central
• Robertson Walk
• Valley Point
bizSAFE Partner Award by
Workplace Safety and Health
Council
• 51 Cuppage Road
• Alexandra Point
• Alexandra Technopark
• China Square Central
• Robertson Walk
• Valley Point
Eco Office by Singapore
Environment Council
• 51 Cuppage Road
• Alexandra Point
• Alexandra Technopark
• China Square Central
• Robertson Walk
• Valley Point
ISO 14001:2015
• 51 Cuppage Road
• Alexandra Point
• Alexandra Technopark
• China Square Central
• Robertson Walk
• Valley Point
ISO 50001:2011
• 51 Cuppage Road
• Alexandra Point
• Alexandra Technopark
• China Square Central
• Robertson Walk
• Valley Point
Occupation Health & Safety
Management System Standard
SS506 Part 1:2009 / BS OHSAS
18001:2007 – Provision of Centre
and Associated Facility Management
Services
• 51 Cuppage Road
• Alexandra Point
• Alexandra Technopark
• China Square Central
• Robertson Walk
• Valley Point
Singapore Health Award 2019 by
Health Promotion Board – Healthy
Workplace Ecosystem
Alexandra Technopark
Water Efficient Building by Public
Utilities Board
• Alexandra Technopark
• China Square Central
• Valley Point
Frasers Centrepoint Trust
Asia Pacific Best of Breeds REITs
2019 – Platinum Award for the
Retail REIT (>US$1b market cap
category)
Frasers Centrepoint Trust
Frasers Property Australia
Human Synergistics Culture Awards
2019 - Transformation Award
Frasers Property Australia
Property Council of Australia
Rider Levett Bucknall Innovation
& Excellence Awards 2019 – FDC
Award for Diversity >250 Employees
– Finalist
Frasers Property Australia
UDIA NSW Leadership Awards 2019
– Diversity & Inclusion Award
Frasers Property Australia
P138_Awards Accolades.indd 138
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14th China Hotel Starlight Awards –
Best Serviced Apartments of China
2019
Modena by Fraser Changsha
14th China Hotel Starlight Awards –
Most Loved Business Traveller Hotel
of China
Modena by Fraser Changsha
19th Golden Horse Awards of China
– Best Serviced Residence
Fraser Place Binhai, Tianjin
2018 Best Serviced Apartment
by Voyage
• Fraser Suites Shenzhen
• Fraser Suites Top Glory, Shanghai
Best Resort Hotel by Mei Tuan
Capri by Fraser, Shenzhen
Best Serviced Residence 2019
by Ctrip
Fraser Place Tianjin
China Mag Travel Awards – Hotel-
Serviced Apartment of the Year 2018
Fraser Place Binhai, Tianjin
Family-Friendly Residential Complex
of the Year 2019 by That’s Shanghai
Fraser Suites Top Glory, Shanghai
Featured Sea View Hotel 2019
by
Capri by Fraser, Shenzhen
Annual Report 2019 139
UDIA NSW Crown Group Awards
for Excellence 2019 – Excellence in
Marketing
Ed.Square
World Travel Awards – World’s
Leading Serviced Apartment Brand
2018
Frasers Hospitality
UDIA NSW Leadership Awards 2019
- UDIA NSW & Frasers Property
Women in Leadership Award –
Commendation
Claudia Certoma
UDIA NSW Roy Sheargold
Scholarship 2019 – Winner
Olivia Leal-Walker
UDIA QLD Diversity Awards 2019
– Diversity in Development Award –
Finalist
Frasers Property Australia
Residential
AILA QLD Landscape Architecture
Awards 2019 – Gardens
Riverlight, Hamilton Reach
Commercial & Industrial
Property Council of Australia Rider
Levett Bucknall Innovation &
Excellence Awards 2019 – LJ Hooker
Commercial Award for Best Business
or Industrial Park
Horsley Drive Business Park
UDIA NSW Crown Group Awards
for Excellence 2019 – Excellence
in Commercial & Industrial
Development
PFD Food Services facility, Chullora
Technology Park
Council on Tall Buildings and Urban
Habitat (CTBUH) 50th Anniversary
Awards – 50 Most Influential Tall
Buildings of the Last 50 Years
One Central Park
Urban Taskforce Development
Excellence Awards 2019 – Industrial
Development
PFD Food Services facility, Chullora
Technology Park
Council on Tall Buildings and Urban
Habitat (CTBUH) Awards 2019 –
Urban Habitat – District/Master Plan
Scale Award of Excellence – Overall
Category Winner
Central Park
Good Design Awards 2019 – Best
Urban Design
Central Park Public Domain
Property Council of Australia
Rider Levett Bucknall Innovation
& Excellence Awards 2019 –
Liberty Award for Best Mixed-Use
Development
Coorparoo Square
UDIA NSW Crown Group Awards
for Excellence 2019 – Excellence in
Masterplanned Communities
Central Park
UDIA NSW Crown Group Awards
for Excellence 2019 – Excellence
in Sustainability & Environmental
Technology
Central Park
UDIA NSW Crown Group Awards for
Excellence 2019 – President’s Award
Central Park
UDIA NSW Crown Group Awards
for Excellence 2019 – Excellence in
High-Density Development, Part of
a Masterplan
DUO, Central Park
UDIA NSW Crown Group Awards
for Excellence 2019 – Excellence in
Mixed-Use Development
DUO, Central Park
MBA VIC Excellence in Construction
Awards 2019 - Excellence in
Construction of Industrial Buildings
VISY Board facility, Truganina
Frasers Hospitality
14th China Hotel Starlight Awards
– Best Luxury Serviced Apartment
Operator of China 2019
Frasers Hospitality
Best Serviced Residence Brand in
China 2018 by Business Traveller
China
Frasers Hospitality
Best Serviced Residence Operator
2019 by Travel Trade Gazette
Frasers Hospitality
Food & Drink Awards by That’s PRD
– Rooftop Bar of the Year 2018
Fraser Suites Shenzhen, Ding Sky Bar
Indonesia Travel & Tourism Awards
– Indonesia Leading Serviced
Apartment Brand 2018
Frasers Hospitality
SilverDoor APAC Property Partner
Awards 2019 – Winner of Exemplary
Service
Frasers Hospitality
World Travel Awards – England’s
Leading Serviced Apartment Brand
2019
Frasers Hospitality
World Travel Awards – France’s
Leading Serviced Apartment Brand
2019
Frasers Hospitality
World Travel Awards – Hungary’s
Leading Serviced Apartment Brand
2019
Frasers Hospitality
Gold Circle Award 2018 by
Agoda.com
Modena by Fraser New District Wuxi
Guest Review Award 2018
by Booking.com
• Fraser Residence Nankai, Osaka
• Fraser Place Shekou, Shenzhen
• Fraser Suites Guangzhou
• Fraser Suites Shenzhen
• Modena by Fraser Bangkok
Indonesia Travel & Tourism Awards
– Indonesia’s Excellence Service
Award for Serviced Apartment 2018
Fraser Residence Sudirman, Jakarta
Indonesia Travel & Tourism Awards
– Indonesia Leading Serviced
Apartment & Suite 2018
Fraser Residence Menteng, Jakarta
Indonesia Travel & Tourism Awards
– Indonesia Serviced Apartment of
The Year 2018
Fraser Place Setiabudi, Jakarta
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140 Frasers Property Limited
Awards and Accolades
World Travel Awards – Qatar’s
Leading Serviced Apartments 2019
Fraser Suites Doha
World Travel Awards – Scotland’s
Leading Serviced Apartments 2019
Fraser Suites Edinburgh, Scotland
World Travel Awards – Singapore’s
Leading Serviced Apartments 2019
Frasers Suites Singapore
World Travel Awards – Oceania’s
Leading Serviced Apartments 2019
Fraser Suites Sydney
Frasers Property UK
Considerate Constructors Scheme
National Site Awards – Silver Award
Nine Eastfields, Riverside Quarter,
London
Frasers Property China
Fu Rong Cup for Chengdu Quality
Project by the Chengdu Construction
Quality Association
Chengdu Logistics Hub, Plot 3
Paradise Cup for Model Housing
Community of Suzhou Urban
Estate Management by the Suzhou
Municipal Administration Bureau
Suzhou Baitang One
Specialised (Characteristic) Building
by the Chengdu Building Grade
Rating Committee
Chengdu Logistics Hub, Plot 3
Trophy of Gusu for Construction
Excellence by Suzhou Industrial Park
Construction Bureau
Suzhou Baitang One
Loved by Guests Award 2019
by Hotels.com
• Fraser Residence Nankai, Osaka
• Fraser Suites Guangzhou
• Modena by Fraser Bangkok
Middle East Hospitality Excellence
Award 2019 by Hozpitality Group
Fraser Suites Dubai
Serviced Apartments of the Year
2019 by TimeOut Shanghai
Fraser Suites Top Glory, Shanghai
Shenzhen Must Stay Hotel 2019
by
• Capri by Fraser, Shenzhen
• Fraser Suites Shenzhen
Thailand MICE Venue Standard 2019
by Thailand Convention & Exhibition
Bureau
Modena by Fraser Bangkok
World Travel Awards – World’s
Leading Serviced Apartments 2018
Fraser Suites Le Claridge Champs-
Élysées, Paris
Frasers Hospitality Trust
Singapore Corporate Awards 2019 –
Best Investor Relations Award under
the REIT and Business Trust category
– Bronze
Frasers Hospitality Trust
Des Prix Infinitus ASEAN Property
Awards – Best City Hotel in Malaysia
The Westin Kuala Lumpur
Experts’ Choice Award by TripExpert
ANA Crowne Plaza Kobe
Top Hotel Partner for Flight & Hotel
Package 2018 by Expedia Group
Fraser Suites Dalian
Forbes Four-Star Rating by Forbes
Travel Guide 2018
InterContinental Singapore
World Luxury Hotel Awards –
Luxury City Serviced Apartments
2018 – Global Winner
Fraser Suites Geneva
World Travel Awards – Bahrain’s
Leading Serviced Apartments 2019
Fraser Suites Seef, Bahrain
World Travel Awards – Dubai’s
Leading Serviced Apartments 2019
Fraser Suites Dubai
World Travel Awards – England’s
Leading Serviced Apartments 2019
Fraser Suites Kensington, London
World Travel Awards – France’s
Leading Serviced Apartments 2019
Fraser Suites Le Claridge Champs-
Élysées, Paris
World Travel Awards – Germany’s
Leading Hotel Residences 2019
Capri by Fraser, Berlin
World Travel Awards – Hungary’s
Leading Serviced Apartments 2019
Fraser Residence Budapest
World Travel Awards – Nigeria’s
Leading Serviced Apartments 2019
Fraser Suites Abuja
World Travel Awards – Oman’s
Leading Serviced Apartments 2019
Fraser Suites Muscat
Global Leadership Awards –
Industry Excellence in Luxury Hotel
The Westin Kuala Lumpur
Highly Commended Serviced
Apartments by Hotel Magazine
Award Australia, New Zealand &
Pacific
Fraser Suites Sydney
Ranked 5th at Traveller’s Choice
2019 – top 25 luxury hotels in
Singapore by TripAdvisor
InterContinental Singapore
Scottish Hotel Awards 2018 –
Serviced Apartment of the Year
Fraser Suites Glasgow
Serviced Apartment/Hotel of the
Year by Tourism Accommodation
Association (NSW)
Fraser Suites Sydney
Singapore Green Hotel Award by
Singapore Hotel Association
InterContinental Singapore
Tourism Accommodation Australia
NSW Awards for Excellence 2018 –
Metropolitan Superior Hotel of the
Year
Novotel Sydney Darling Square
World Luxury Hotel Awards 2018 –
Luxury Historical Hotel and Luxury
Hotel & Conference Centre
Sofitel Sydney Wentworth
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Annual Report 2019 141
Enterprise-Wide
Risk Management
Enterprise-wide Risk Management (ERM) is an essential
part of the business strategy of the Group. We maintain
a risk management system to proactively manage risks
at the strategic, tactical and operational level to support
the achievement of our business objectives and corporate
strategies. Through active risk management at all levels,
the FPL management (the Management) creates and
preserves value for the Group.
The Board of Directors (Board) is responsible for the
governance of risks across the Group and ensuring
that the Management maintains a sound system of
risk management and internal controls to achieve the
business objective. It is assisted by the Risk Management
Committee (RMC) to oversee our ERM framework,
determine the risk appetite and risk strategy, assess
our risk profile, material risks, and mitigation plans, as
well as to ensure the adequacy and effectiveness of risk
management policies and procedures. The RMC comprises
members of the Board who meet quarterly to review
material risk issues and the mitigating strategies for such
risks. All material risks and risk issues are reported to the
RMC for review.
The RMC, on behalf of the Board, approves FPL’s risk
tolerance statements, which set out the nature and
extent of the significant risks that we are willing to take
in achieving our business objectives. The risk tolerance
statements are supported by the risk thresholds
which have been developed by Management. These
thresholds set the risk boundaries in various strategic and
operational areas and serve as a guide for Management
in their decision making. The risk tolerance status is
reviewed and monitored closely by Management.
Any risk that has escalated beyond its threshold will
be highlighted and addressed and, together with its
associated action plan, will be reported to the RMC.
Risk Management Process
To facilitate a consistent and cohesive approach to ERM,
we have developed an ERM framework and process.
We adopt a robust risk management framework
to maintain a high level of corporate discipline
and governance. The risk management process is
implemented by Management for the identification and
management of risks of the Group. The process consists
of risk identification, risk assessment and evaluation, risk
treatment, risk monitoring and reporting.
The ERM framework links FPL’s risk management process
with the strategic, tactical objectives and operations.
Risks are identified and assessed, and mitigating measures
developed to address and manage those risks. The ERM
framework and process are summarised in an ERM policy
for employees.
The risk management process is integrated and
coordinated across our businesses. The ERM framework
and process applies to all our business units. The risk
ownership lies with the heads of the respective business
units who consistently review risks and ensure the
control measures are effective. They are responsible
for the development, implementation and practice of
ERM within the business unit. Emerging risks that have
a material impact on the business units are identified,
assessed and monitored closely. The risk exposures
and potential mitigating measures are tracked in risk
registers maintained in a web-based corporate risk
scorecard system. Where applicable, key risk indicators
are established to provide an early warning signal to
monitor risks. Key material risks and their associated
mitigating measures are consolidated at the Group level
and reported to the RMC quarterly.
We proactively manage risks at the operational level.
Control self-assessment, which promotes accountability
and risk ownership, is implemented for key business
processes. We have put in place a comfort matrix
framework, which provides an overview of the mitigating
strategies, and assurance processes of key financial,
operational, compliance and information technology risks.
An ERM validation is held at Management level annually.
At this annual ERM validation, the heads of business units
deliberate on key risks and the corresponding mitigating
strategies for their business units in response to emerging
risks and opportunities, provide assurance to the Group
Chief Executive Officer and key management personnel
that the business units’ key risks have been identified and
monitored, and that the mitigating measures are effective
and adequate. The results of the ERM validation for the
financial year ended 30 September 2019 were reported
and presented to the RMC and the Board.
We enhance our risk management culture through various
risk management activities. Risk awareness briefings are
conducted for all levels during staff orientation. Refresher
sessions are organised for existing staff when required.
Periodic discussions of risk and risk issues are held at the
business unit level where emerging risks are identified and
managed. Business continuity exercises are carried out at
least annually at the business units and the Group level to
prepare ourselves against unexpected crisis.
We seek to improve our risk management processes
on an ongoing basis. Our risk management system
is benchmarked against market practice. During the
financial year, we improved our risk management
capability by engaging an external professional
consultant to conduct a high-level risk review exercise on
the ERM framework and structure at the Corporate level.
For this financial year, we also enhanced our business
continuity management capability through rolling out a
business continuity management (BCM) programme at
the business unit level for the Frasers Hospitality Business
Units. We will continue to roll out the BCM programme
to other business units in the coming years. The business
continuity effort is overseen by our Business Continuity
Management Committee comprising the key heads of
departments and business units.
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142 Frasers Property Limited
Enterprise-Wide Risk Management
Key Risks
The Management has been actively monitoring the key
material risks that affect the Group. Some material risks
include:
Country risks (economic, political and regulatory risks)
With diversified international operations and investments,
we are exposed to developments in major economies and
key financial and property markets. The risk of adverse
changes in the global economy can reduce profits, result
in revaluation losses, affect our ability to sell residential
development stock and exit from operations and
investments.
Inconsistent and frequent changes in regulatory policies
as well as security threats may also result in higher
operating and investment costs, loss in productivity and
disruptions to business operations.
We adopt a prudent approach in selecting locations for
our investment to mitigate risks. We put measures in
place to monitor the markets closely, such as through
maintaining good working relationships and engaging
with local authorities, business associations and local
contacts, and reviewing expert opinions and market
indicators, keeping abreast of economic, political and
regulatory changes as well as stepping up the crisis
preparedness of FPL’s properties. Emphasis is also placed
on regulatory compliance in our operations.
Financial Risk
We have global operations and therefore exposed to
financial risks such as foreign exchange risk, interest rate
risk and liquidity risk. We use derivatives, a mix of fixed
and floating rate debt with varying tenors as well as other
financial instruments to hedge against foreign exchange
and interest rate exposure. Policies and processes are in
place to facilitate the monitoring and management of
these risks.
To manage liquidity risk, we monitor cash flow and
maintain sufficient cash or cash equivalents as well as
secures funding through multiple sources, to ensure that
financing, funding and repayment of debt obligation are
fulfilled. Our financial risk management is discussed in
more detail in Treasury Highlights on pages 94 to 95 and
the Notes to the Financial Statements on pages 197 to 349.
Human Capital Risk
We view our human capital as a key factor for driving
growth. As such, talent management, employee
engagement, the retention of key personnel and
maintenance of a conducive work environment are
important to the Group. In view of these considerations,
the human resources team has developed and
implemented effective reward schemes, succession
planning, corporate wellness programmes and staff
development programmes. Details on the various
programmes and initiatives can be found in the
Sustainability Report on pages 96 to 136.
Fraud and Corruption Risk
We do not condone any acts of fraud, corruption or
bribery by employees in the course of our business
activities. We have put in place various policies and
guidelines, including a Code of Business Conduct and an
Anti-bribery policy to guide the employees on business
practices, standards and conduct expected while in their
employment with us. A Whistle-Blowing Policy has also
been put in place to provide a clearly defined process
and independent feedback channel for employees to
report any suspected improprieties in confidence and in
good faith, without fear of reprisal. The Audit Committee
reviews and ensures that independent investigations
and appropriate follow-up actions are carried out. More
details can be found in the Corporate Governance Report
on pages 143 to 173.
Technology Risk
Digital disruption and the future of work that are enabled
by digital technology offer new opportunities and
challenges. FPL continues to build digital capabilities
and invest in new technologies to ensure our business
is future-ready. To safeguard our Group, a management
sub-committee, being the Information Technology &
Cybersecurity Committee, has been formed to oversee
the management of technology risks including cyber risks
such as unauthorised access, data leakages, and cyber-
attacks. We have put in place group-wide policies and
procedures which set out the governance and controls
to ensure the confidentiality, availability and integrity
of our IT systems, as well as ensuring that cybersecurity
threats are managed. Disaster recovery plans and incident
management procedures have been developed and tested
regularly. Periodic trainings are also conducted for new
and existing employees to raise IT security awareness.
External professional services are engaged to conduct
independent vulnerability assessment and penetration
tests to further strengthen our Group’s IT systems.
Environmental, Health & Safety (EHS) Risks
We place importance in managing EHS risks in our
international operations. We have put in place an EHS
policy and EHS management systems in key operation
areas to manage the risks. We have achieved OHSAS
18001 (Occupational Health & Safety) and ISO 14001
(Environment) certification for our key operations. The
Singapore Retail Mall Management has been certified
OHSAS 18001, while the Singapore Office Building
Management has achieved the ISO 14001, OHSAS 18001
and ISO 50001 (Energy) certification. Our hospitality
business unit, Frasers Hospitality, is expanding its EHS
management system in accordance to the ISO 14001 and
ISO 45001 (updated standard on Occupational Health
& Safety) to cover the enlarged Singapore managed
properties. Frasers Property Australia’s key operations
have also been certified ISO 14001 and AS/NZS 4801
(Australia and New Zealand Standard for Occupational
Health & Safety). In Frasers Property Thailand, a Health
& Safety policy has also been put in place this financial
year. We will continue to extend the coverage of our EHS
management systems to a wider scope of operations in
the future.
We set targets in reducing greenhouse gas emission,
energy usage and water consumption within our
investment portfolio. More details can be found in the
Sustainability Report on pages 96 to 136.
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Corporate Governance
Report
Annual Report 2019 143
OUR GOVERNANCE FRAMEWORK
CHAIRMAN
Mr Charoen Sirivadhanabhakdi
–––––––––––––––––––––––––––––––––––
Key Objectives
Lead and ensure effectiveness of the
Board, including effective communication
with shareholders and other stakeholders
BOARD OF FRASERS PROPERTY LIMITED
11 Directors:
- 6 Independent Directors
- 5 Non-independent Directors
–––––––––––––––––––––––––––––––––––
Key Objectives
Provide oversight of business performance
and affairs of the Company for the long-
term success of the Company
BOARD EXECUTIVE COMMITTEE
Chairman: Mr Charoen Sirivadhanabhakdi
2 Independent Directors, 4 Non-independent Directors
Key Objectives
Formulate strategic development initiatives of the Group and
provide direction to ensure that the Group achieves its desired
performance objectives and enhances long-term shareholder
value
AUDIT COMMITTEE
Chairman: Mr Charles Mak Ming Ying
3 Independent Directors, 1 Non-independent Director
Key Objectives
Assist the Board in fulfilling responsibility for overseeing the
quality and integrity of the accounting, auditing, internal
controls, risk management and financial practices of the Group
NOMINATING COMMITTEE
Chairman: Mr Weerawong Chittmittrapap
3 Independent Directors, 1 Non-independent Director
Key Objectives
Establish a formal and transparent process for appointment
and re-appointment of Directors, formulate the performance
criteria and process for evaluation of the effectiveness of the
Board, Board Committees and individual Directors, review the
Board and Directors' training and professional development
programmes
REMUNERATION COMMITTEE
Chairman: Mr Philip Eng Heng Nee
3 Independent Directors
Key Objectives
Assist the Board in establishing a formal and transparent
process for developing policies on executive remuneration
and development and review of the remuneration framework
for the Non-executive Directors, the Group CEO and key
management personnel
RISK MANAGEMENT COMMITTEE
Chairman: Mr Chotiphat Bijananda
3 Independent Directors, 3 Non-independent Directors
Key Objectives
Assist the Board in carrying out its responsibility of overseeing
the Company’s risk management framework and policies
and to report to the Board and provide appropriate advice
and recommendations on material risk issues, and a risk
management system for the timely identification, mitigation
and management of key risks that may have a material impact
on the Group
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144 Frasers Property Limited
Corporate Governance
Report
INTRODUCTION
Frasers Property Limited ("FPL" or the "Company", and together with its subsidiaries, the "Group") was re-listed on
9 January 2014 on the Mainboard of the Singapore Exchange Securities Trading Limited (the "SGX-ST").
In line with the listing rules of the SGX-ST (the "Listing Rules"), FPL complies with the principles of the Code of Corporate
Governance 2018 (the "Code"). Even though the Code applies to annual reports covering financial years commencing
1 January 2019, the Board of Directors (the "Board") has elected to adopt and comply with Rule 710 of the listing manual
of the SGX-ST (the “SGX-ST Listing Manual”) to describe its corporate governance practices with specific reference to the
principles and provisions of the Code (and not the Code of Corporate Governance 2012). The practices of the Board and
the management of the Group (the "Management") adhere closely to the provisions under the Code. To the extent FPL's
practices may vary from any provision, FPL will explain the reason for the variation and how its practices nevertheless
are consistent with the intent of the relevant principle of the Code. FPL is also guided by the voluntary Practice Guidance
which was issued to complement the Code and which sets out best practice standards for companies; as this will build
investor and stakeholder confidence in the Group. A summary of compliance with the express disclosure requirements in
the principles and provisions of the Code is set out on pages 172 to 173.
FPL'S VALUES
1.
2.
3.
FPL is firmly committed to upholding and maintaining high standards of corporate governance, corporate
transparency and sustainability. FPL believes that a robust and sound governance framework is an essential
foundation on which to build, evolve and innovate a business which is sustainable over the long-term, and is
resilient in the face of the demands of a dynamic, fast-changing environment.
FPL adheres to corporate policies, business practices and systems of risk management and internal controls, which
are designed to ensure that it maintains consistently high standards of integrity, accountability and governance
throughout its organisation and in its daily operations.
FPL pursues growth and enhancement of corporate performance and value on a sustainable basis. In so doing, FPL
safeguards the assets of the Group, in the interests of the Company's shareholders (the "Shareholders") and other
stakeholders.
The Board works with Management to ensure that these values underpin its leadership of the Company and guides
Management and employees at all levels of the organisation in their respective roles within the Group.
BOARD MATTERS
The Board
The Board is responsible for the Group's overall entrepreneurial leadership, oversight of the Group's business performance,
determination of its risk appetite and performance objectives, and its long-term success. The Board sets the strategic
direction of the Group and its approach to corporate governance, including the organisational culture, values and ethical
standards of conduct, and works with Management on its implementation across all levels of the Group's organisation, as
well as focus on value creation, innovation and sustainability. The Board, supported by Management, ensures necessary
resources are in place for the Group to meet its strategic objectives. Through the Group’s enterprise-wide risk management
framework, the Board establishes and maintains a sound risk management framework to effectively monitor and manage
risks. It also oversees Management to ensure transparency and accountability to key stakeholder groups.
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Corporate Governance
Report
Annual Report 2019 145
In the financial year ended 30 September 2019 ("FY2019"), the Board attended a two day Board Strategy Meeting which
allowed the directors of the Company (the "Directors") to: (i) focus on the Group’s long-term strategic issues apart from
the regular agenda at quarterly Board meetings; and (ii) engage in dynamic and in-depth strategic discussion to promote a
deeper understanding of the Group’s business environment and operations, to refine its strategies. All Directors attended
the Board strategy meeting where topics such as identifying core capabilities and supporting management systems,
summary of key takeaways from the Management strategy retreat, and strategies and priorities for the Group’s key real
estate platforms were discussed.
The Chairman
The Chairman of the Board (the "Chairman") leads the Board. The Chairman sets the right ethical and behavioural tone and
ensures the Board's effectiveness by, among other things, encouraging active and effective engagement, participation by
and contribution from all Directors and facilitating constructive relations among and between them and Management.
The Chairman promotes a culture of openness at Board meetings and encourages Directors to engage in productive and
thorough discussions on strategic, business and other key issues pertinent to the business and operations of the Group,
and fosters constructive debate, leading to better decision-making and enhanced business performance.
Role of Management
The Management is led by the Group Chief Executive Officer (the "Group CEO") of the Company. Senior Management,
comprising the Group CEO, the Group Chief Corporate Officer (the “Group CCO”), the Group Chief Financial Officer ("Group
CFO"), the Group Chief Investment Officer (the “Group CIO”) and the Chief Executive Officers ("CEOs") of the Group's
strategic business units (the "SBUs") (collectively, the "Key Management Personnel") are responsible for executing the
Group's strategies and policies, and are accountable to the Board for the conduct and performance of the respective
business operations under their charge.
Division of Responsibilities between the Chairman and Group CEO
The division of responsibilities between the Chairman and the Group CEO are clearly demarcated. Having clarity of
their respective responsibilities, and separating as the Chairman and the Group CEO roles, avoids concentration of
power, ensures a degree of checks and balances, increases accountability, and ensures greater capacity of the Board for
independent decision making.
Relationships between Management and Board
Mr Panote Sirivadhanabhakdi was appointed as the Group CEO as of 1 October 2016. Mr Panote Sirivadhanabhakdi is
the son of the Chairman of the Board, Mr Charoen Sirivadhanabhakdi, who is also a substantial Shareholder. Mr Panote
Sirivadhanabhakdi is also the brother-in-law of a Director, Mr Chotiphat Bijananda. The Board has appointed a lead
independent director to provide leadership in situations where the Chairman is conflicted. Please refer to the section
“Lead Independent Director” on page 157.
Board Committees
The Board has formed committees of the Board (the "Board Committees") to oversee specific areas for greater efficiency.
There are five Board Committees, namely, the Board Executive Committee ("EXCO"), the Audit Committee ("AC"), the
Nominating Committee ("NC"), the Remuneration Committee ("RC") and the Risk Management Committee ("RMC").
Minutes of all Board Committee meetings are circulated to the Board so that Directors are aware of and kept updated as
to the proceedings, matters discussed and decisions made during such meetings.
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146 Frasers Property Limited
Corporate Governance
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MEMBERSHIP
KEY OBJECTIVES
BOARD EXECUTIVE COMMITTEE
Mr Charoen Sirivadhanabhakdi, Committee Chairman
Mr Charles Mak Ming Ying, Vice Chairman
Mr Chotiphat Bijananda, Vice Chairman
Mr Wee Joo Yeow, Member
Mr Panote Sirivadhanabhakdi, Member
Mr Sithichai Chaikriangkrai, Member
•
•
Formulate strategic development initiatives of the Group
Provide direction for new investments and material
financial and non-financial matters to ensure that the
Group achieves its desired performance objectives and
enhances long-term shareholder value
The EXCO assists the Board in enhancing its business strategies and contributes towards the strengthening of core
competencies of the Group. The terms of reference of the EXCO provide that the EXCO shall provide overall direction
as well as oversee the general management of the Company and the Group. It is empowered to formulate the Group's
strategic development initiatives, take all possible measures to protect the interests of the Group, review and approve
corporate values, corporate strategy and corporate objectives, review and approve corporate decisions subject to the
threshold limits set under the Company's prevailing internal control procedures, and review both the financial and non-
financial performance of the Company and the Group. The EXCO reviews and approves corporate decisions, such as
capital investments, and acquisitions, investments and divestments (other than those which are material to the Company
requiring Board approval).
MEMBERSHIP
Mr Charles Mak Ming Ying, Chairman
Mr Philip Eng Heng Nee, Member
Mr Wee Joo Yeow, Member
Mr Sithichai Chaikriangkrai, Member
AUDIT COMMITTEE
•
KEY OBJECTIVES
in fulfilling
Assist the Board
its responsibility for
overseeing the quality and integrity of the accounting,
auditing, internal controls, risk management and financial
practices of the Group
The AC is made up of non-executive Directors, the majority of whom, including the Chairman, are Independent Directors.
The members of the AC, including the Chairman, are appropriately qualified and have recent and/or relevant accounting
and related financial management expertise or experience. Their collective wealth of experience and expertise enables
them to discharge their responsibilities competently.
Under the Terms of Reference of the AC, a former partner or director of the Company's existing auditing firm or auditing
corporation shall not act as a member of the AC: (a) within a period of two years commencing on the date of his ceasing
to be a partner of the auditing firm or director of the auditing corporation; and in any case (b) for so long as he has any
financial interest in the auditing firm or auditing corporation. None of the members of the AC were previous partners
or directors of the Company's auditors, KPMG LLP, and none of the members of the AC hold any financial interest in the
Company's external auditors, KPMG LLP.
The Terms of Reference of the AC provide that some of the key responsibilities of the AC include:
•
•
External Audit Process: reviewing and reporting to the Board, its assessment of the adequacy, effectiveness,
independence, scope and results of the external audit, taking into account the Audit Quality Indicators Disclosure
Framework published by the Accounting and Corporate Regulatory Authority of Singapore ("ACRA");
Internal Audit: reviewing and reporting to the Board, its assessment of the adequacy, effectiveness, independence,
scope and results of the Company's and the Group's internal audit function, and to approve the appointment,
termination and remuneration of the head of the internal audit function, or the accounting/auditing firm or
corporation to which the internal audit function is outsourced;
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•
•
•
•
•
•
Financial Reporting: reviewing and reporting to the Board, the significant financial reporting issues and judgements,
and how these issues were addressed, so as to ensure the integrity of the financial statements of the Company and
the Group, and to review the assurance provided by the Group CEO and the Group CFO that the financial records
have been properly maintained and the financial statements give a true and fair view of the Company's operations
and finances;
Internal Controls and Risk Management: reviewing and reporting to the Board at least annually, its assessment of
the adequacy and effectiveness of the Company's and the Group's internal controls, including financial, operational,
compliance and information technology controls, and risk management systems;
Interested Person Transactions: reviewing interested person transactions ("IPT") as may be required under the
SGX-ST Listing Manual and the IPT General Mandate, and to ensure proper disclosure and reporting to Shareholders;
Conflicts of Interests: monitoring and/or reviewing any actual or potential conflicts of interest that may involve
the Directors (as disclosed by them to the Board and in exercising their Directors' fiduciary duties), controlling
shareholders and their respective associates;
Whistle-blowing: reviewing the policy and arrangements for concerns about possible improprieties in financial
reporting or other matters to be safely raised, independently investigated and appropriately followed up; and
Investigations: reviewing the findings of internal investigations into any suspected fraud or irregularity, or
suspected infringement of any Singapore laws or regulations, which has or is likely to have a material impact on
the Company's operating results or financial position.
In carrying out its role, the AC is empowered to investigate any matter within its Terms of Reference, with full access to
and co-operation by Management, and full discretion to invite any Director or executive officer to attend its meetings,
and reasonable resources to enable it to discharge its functions properly. The AC meets with internal auditors and external
auditors without the presence of Management at least once a year to obtain feedback on the competency and adequacy
of the finance function and to ascertain if there are any material weaknesses or control deficiencies in the Group's financial
reporting and operational systems. The AC may also consult outside counsel, auditors or other advisors as it may deem
necessary at the Company's expense.
Periodic updates on changes in accounting standards and treatment are prepared by external auditors and circulated to
members of the AC so that they are kept abreast of such changes and its corresponding impact on the financial statements,
if any.
During FY2019, key activities of the AC included:
•
•
•
•
reviewing the quarterly and full-year financial results and related SGX-ST announcements, including the
independent auditors' report, significant financial reporting issues and assessments to safeguard the integrity
in financial reporting, and to ensure compliance with the requirements of the Singapore Financial Reporting
Standards;
recommending, for the approval of the Board, the quarterly and annual financial results and related SGX-ST
announcements;
reviewing and evaluating with internal and external auditors, the adequacy and effectiveness of internal control
systems, including financial, operational, information technology and compliance controls;
reviewing and approving the internal and external audit plans to ensure the adequacy of the audit scope;
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•
•
•
•
reviewing with internal and external auditors, the audit reports and their recommendations, and monitoring the
timely and proper implementation of any required corrective or improvement measures;
reviewing the adequacy and effectiveness of the Group's internal audit function, including the adequacy of internal
audit resources and its appropriate standing within the Group;
assessing the independence and objectivity of the external auditors and the quality of the work carried out by the
external auditors, using ACRA's Audit Quality Indicators Disclosure Framework as a basis; and
reviewing whistle-blowing investigations within the Group and ensuring appropriate follow-up actions, where
required.
MEMBERSHIP
Mr Weerawong Chittmittrapap, Chairman
Mr Charles Mak Ming Ying, Member
Mr Chan Heng Wing, Member
Mr Chotiphat Bijananda, Member
NOMINATING COMMITTEE
KEY OBJECTIVES
•
•
•
Establish a
appointment and re-appointment of Directors
formal and
transparent process
for
Assessing annually the effectiveness of the Board as
a whole, and that of each of its Board Committees and
individual Directors
Identifying and developing Board
professional development programmes
training and
A majority of the members of the NC, including the Chairman, are independent non-executive Directors. The Lead
Independent Director, Mr Charles Mak Ming Ying, is a member of the NC.
The NC is guided by written Terms of Reference approved by the Board which set out the duties and responsibilities of the
NC. The NC's responsibilities include reviewing the structure, size and composition and independence of the Board and its
Board committees, reviewing and making recommendations to the Board on the succession plans for Directors, making
recommendations to the Board on all Board appointments, and determining the independence of Directors. The NC also
proposes for the Board's approval, the objective performance criteria and process for the evaluation of the effectiveness of
the Board, the Board Committees and individual Directors, and ensures that proper disclosure of such criteria and process
is made. The NC is also responsible for making recommendations to the Board on training and professional development
programmes for the Board and the Directors.
Further information on the main activities of the NC are outlined in the following sections:
•
•
•
•
"Training and development of Directors" on page 153
"Board Composition" on pages 154 to 158
"Directors' Independence" on pages 156 to 157
"Board Evaluation Performance" on pages 157 to 158
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MEMBERSHIP
Mr Philip Eng Heng Nee, Chairman
Mr Charles Mak Ming Ying, Member
Mr Chan Heng Wing, Member
REMUNERATION COMMITTEE
KEY OBJECTIVES
•
•
Assist the Board in establishing a formal and transparent
process for developing policies on executive remuneration
and development
Ensuring that the level and structure of remuneration of
the Board and key management personnel of the Group
are appropriate and proportionate to the sustained
performance and value creation of the Company
The RC is made up entirely of non-executive Directors, all of whom, including the Chairman, are Independent Directors.
Under the Terms of Reference of the RC, the RC shall review and recommend to the Board, a framework of remuneration for
the Board and Key Management Personnel, and ensure the remuneration policies and systems of the Group, as approved
by the Board, support the Group's objectives and strategies, and are consistently administered and being adhered to
within the Group.
On an annual basis, the RC also reviews and recommends to the Board the Group's remuneration and benefits policies
and practices (including long-term incentive schemes), and the performance and specific remuneration packages for each
Director and Key Management Personnel, in accordance with the approved remuneration policies and processes. The
RC also proposes, for the Board's approval, criteria to assist in the evaluation of the performance of Key Management
Personnel, and reviews the obligations of the Group arising in the event of the termination of the service contracts of
executive Directors and Key Management Personnel to ensure that such contracts of service contain fair and reasonable
termination clauses. The RC also administers and approves awards under the FPL Performance Share Plan, the FPL
Restricted Share Plan and/or other long term incentive schemes to senior executives of the Group.
In carrying out its role, the Terms of Reference of the RC provide that the RC shall consider all aspects of remuneration,
including Directors' fees, special remuneration to Directors who render special or extra services to the Company or the
Group, salaries, allowances, bonuses, share-based incentives and awards, benefits in kind and termination payments, and
shall aim to be fair and to avoid rewarding poor performance.
If necessary, the RC can seek expert advice on remuneration within the Company or from external sources. Where such
advice is obtained from external sources, the RC ensures that existing relationships, if any, between the Company and its
appointed remuneration consultants will not affect the independence and objectivity of the remuneration consultants.
MEMBERSHIP
Mr Chotiphat Bijananda, Chairman
Mr Charles Mak Ming Ying, Member
Mr Chan Heng Wing, Member
Mr Weerawong Chittmittrapap, Member
Mr Panote Sirivadhanabhakdi, Member
Mr Sithichai Chaikriangkrai, Member
RISK MANAGEMENT COMMITTEE
KEY OBJECTIVES
•
•
Assist the Board in carrying out its responsibility of
overseeing the Company's risk management framework
and policies
Report to the Board and provide appropriate advice
and recommendations on material risk issues, and a
risk management system for the timely identification,
mitigation and management of key risks that may have a
material impact on the Group
Save for Mr Panote Sirivadhanabhakdi, all members of the RMC are non-executive Directors, and three of whom, namely
Mr Charles Mak Ming Ying, Mr Chan Heng Wing and Mr Weerawong Chittmittrapap are Independent Directors.
The RMC assists the Board to oversee the Group’s enterprise-wide risk management framework, determine the risk
appetite and risk strategy, and assess the Group’s risk profile, material risks, and mitigation plans.
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The Board, through the RMC, reviews the adequacy and effectiveness of the Group's risk management framework and
systems to ensure that robust risk management and mitigating controls are in place. Together with the AC, the RMC
helps to ensure that Management maintains a sound system of risk management and internal controls to safeguard
the interests of Shareholders and the assets of the Group. Through guidance to and discussions with Management, the
RMC assists the Board in its determination of the nature and extent of significant risks which the Board is willing to take
in achieving the Group's strategic objectives. The meetings of the RMC are attended by key senior Management of the
Group. The meetings serve as a forum to review and discuss material risks and exposures of the Group's businesses and
strategies to mitigate risks. Further information on the key activities conducted by the RMC can be found in the section
titled "Governance of Risk and Internal Controls" on pages 166 to 168.
In addition to the Board Committees, the Company has established an Information Technology & Cybersecurity Committee
that comprises board members and members of Management.
INFORMATION TECHNOLOGY & CYBERSECURITY COMMITTEE
MEMBERSHIP
Mr Tan Pheng Hock, Chairman
Mr Wee Joo Yeow, Member
Mr Panote Sirivadhanabhakdi, Member
Mr Chia Khong Shoong, Member
Mr Sebastian Tan, Member
KEY OBJECTIVES
•
Review and monitor the on-going appropriateness and
relevance of the Company’s policy for the allocation of
resources required to deliver and execute both the short-
term and long-term information technology strategies
The Information Technology & Cybersecurity Committee approves major changes in any information technology
strategies, priorities and/or structures implemented throughout the Group. It also reviews and approves the Company’s
policies and procedures relating to cybersecurity and information technology, and seeks to ensure value for money in the
provision of information technology services and that appropriate business continuity arrangements are in place relating
to information technology.
The Information Technology & Cybersecurity Committee will make recommendations to the Board as it deems appropriate
on any area within its remit where action or improvement is needed.
Delegation of Authority Framework
The Company has adopted a framework of delegated authorisations in its Manual of Authority (the "MOA"). The MOA
defines the procedures and levels of authorisation required for specified transactions. It also sets out approval limits for
operating and capital expenditure as well as acquisitions and disposals of assets and investments.
While day-to-day operations of the Group's business are delegated to Management, in the Board's exercise of its
leadership and oversight of the Group, the MOA contains a schedule of matters specifically reserved for approval by the
Board. These include approval of annual budgets, financial plans, business strategies and material transactions, such as
major acquisitions, divestments, funding and investment proposals.
The Board approves transactions exceeding certain threshold limits while delegating authority for transactions below
these limits to the EXCO and/or Management and sub-committees formed at various levels of Management (the
"Management Sub-Committees"), under the authorisation limits of the MOA, to optimise operational efficiency.
Aligned with the Company's strategy to develop growth and build scalable platforms in core businesses and geographical
markets, the Board has also put in place an internal approval matrix with established authority limits delegated to
Management Sub-Committees, to facilitate the execution of adopted business strategies and operating plans subject to
specified authority limits.
Such Management Sub-Committees include finance and investment committees at various business units that are
responsible for the review of the quality and integrity of (a) finance, accounting, treasury, information technology and
taxation functions; (b) audit, internal controls and financial practices; and (c) risk management and compliance framework,
and reviewing of all proposed acquisitions, development plans, asset disposals and major leasing transactions.
The MOA and the internal approval matrix form a clear structure of accountability for decisions taken at different levels
of the Group.
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Meetings of the Board and Board Committees
The Board and its various Board Committees meet regularly, and also as required by business needs or if their members
deem it necessary or appropriate to do so.
The following table summarises the number of meetings of the Board and Board Committees and general meetings held
and attended by the Directors in FY2019:
Board
Executive
Committee
2
Board
6
Audit
Committee
5
Nominating
Committee
1
Remuneration
Committee
6
Risk
Management
Committee
4
General
Meetings
1
Meetings held for FY2019
Mr Charoen
Sirivadhanabhakdi
6 (C)
1 (C)
-
Khunying Wanna
Sirivadhanabhakdi
Mr Charles Mak Ming Ying
Mr Chan Heng Wing
Mr Philip Eng Heng Nee
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Mr Weerawong
Chittmittrapap
Mr Chotiphat Bijananda
Mr Panote
Sirivadhanabhakdi
Mr Sithichai Chaikriangkrai
6
6
5
6
6
5
5
5
6
6
-
2
-
-
-
2
-
2
2
2
-
5 (C)
-
5
-
5
-
-
-
5
-
-
1
1
-
-
-
1 (C)
1
-
-
-
-
6
5
6 (C)
-
-
-
-
-
-
-
-
4
2
-
-
-
4
4 (C)
4
4
-
-
1
1
1
1
1
-
1
1
1
Note: (C) refers to Chairman of the Board or Board Committees
A calendar of activities is scheduled for the Board a year in advance.
The Company's Constitution provides for Board members who are unable to attend physical meetings to participate
through telephone conference, video conference or any other forms of electronic or instantaneous communication
facilities.
Directors are provided with Board papers setting out relevant information on the agenda items to be discussed at Board
and Board Committee meetings around a week in advance of the meeting (save in cases of urgency), to give Directors
sufficient time to prepare for the meeting and review and consider the matters being tabled and/or discussed so that
discussions can be more meaningful and productive and Directors have the necessary information to make sound,
informed decisions.
Senior members of the Management team and from the Company's business divisions attend Board meetings, and where
necessary, Board Committee meetings, to brief and make presentations to the Directors, provide input and insight into
matters being discussed, and respond to queries and take any follow up instructions from the Directors.
Where required by the Directors, external advisers may also be present or available whether at Board and Board Committee
meetings or otherwise, and at FPL's expense where applicable, to brief the Directors and provide their expert advice.
For matters which require the Board’s and/or Board Committees’ decision outside such meetings, Board and/or Board
Committee papers will be circulated through the Company Secretary for the Directors’ consideration with further
discussions taking place between the Directors and Management (if required) before a decision is made.
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Matters Discussed by Board and Board Committees in FY2019
BOARD
Strategy
Business and Operations Update
Financial Performance
•
• Governance
Feedback from Board committees
•
• Networking
Risk Management
Committee
•
Risk Management
Framework and
Policies
• Material Risk
Issues
Audit
Committee
External and
Internal Audit
Financial
Reporting
Internal Controls
and Risk
Management
Interested Person
Transactions
Conflicts of
Interests
•
•
•
•
•
•
•
•
•
• Whistle-blowing
•
Investigations
Nominating
Committee
Board
Composition and
Renewal
•
Remuneration
Committee
Remuneration
Policies and
Framework
Board, Board
Committees
and Director
Evaluations
Training and
Development
Succession
Planning
•
•
•
Board Executive
Committee
Strategic
Development
Initiatives
• Direction for New
Investments and
Material Financial
and Non-Financial
Matters
Board Oversight
Outside of Board and Board Committee meetings, Management also provides Directors with reports on major operational
matters, business development activities, financial performance, potential investment opportunities and budgets
periodically, as well as such other relevant information on an on-going and timely basis to enable them to discharge their
duties and responsibilities properly. Where required or requested by Directors, site visits and meetings with personnel
from the Group's business divisions are also arranged for Directors to have an intimate understanding of the key business
operations of each division and to promote active engagement with Management.
Directors are provided with sufficient information to enable them to ensure that they prepare adequately for Board and
Board Committee meetings, and devote sufficient time and attention to the affairs of the Group. At Board and Board
Committee meetings, the Directors actively participate, discuss, deliberate and appraise matters requiring their attention
and decision. Where necessary for the proper discharge of their duties, the Directors may seek and obtain independent
professional advice at the Company's expense.
The Company Secretary
The Company Secretary, who is legally trained and familiar with company secretarial practices, is responsible for
overseeing compliance with Board and Board Committee procedures, the Company's Constitution and relevant corporate
rules and regulations, including disclosure requirements under the Securities and Futures Act, Chapter 289, Companies
Act, Chapter 50 (the "Companies Act") and the Listing Rules, and provides advice and guidance on corporate governance
practices and processes.
The Company Secretary attends Board and Board Committee meetings and drafts and reviews the minutes of proceedings
thereof, and facilitates and acts as a channel of communication for the smooth flow of information to and within the
Board and its various Board Committees, as well as between and with senior Management.
The Company Secretary solicits and consolidates Directors' feedback and evaluation, facilitates induction and orientation
programmes for new Directors, and assists with Directors' professional development matters. The Company Secretary
also acts as the Company's primary channel of communication with the SGX-ST.
The appointment and removal of the Company Secretary is subject to the approval of the Board.
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Training and Development of Directors
The NC is tasked with ensuring that new Directors are aware of their duties and obligations, and overseeing and making
recommendations to the Board on the review of training and professional development programmes for the Board and
its Directors.
Upon appointment, each new Director is issued a formal letter of appointment setting out his or her duties and obligations,
including his or her responsibilities as fiduciaries and on the policies relating to conflicts of interest. A comprehensive
induction and orientation programme is also conducted to familiarise new appointees with the business activities,
strategic direction, policies and corporate governance practices of the Group, as well as their statutory and other duties
and responsibilities as Directors. This programme allows new Directors to get acquainted with Management, and fosters
better rapport and facilitates communication with Management.
The Directors are kept continually and regularly updated on the Group's businesses and the regulatory and industry
specific environments in which the entities of the Group operate. Updates on relevant legal, regulatory and technical
developments may be in writing or disseminated by way of presentations and/or handouts. The Board is also regularly
updated on the latest key changes to any applicable legislation and changes to the Listing Rules as well as developments
in financial reporting standards, by way of briefings held by the Company's lawyers and auditors. During FY2019, the
Directors were updated on (a) changes in Financial Reporting Standards, (b) key tax measures, (c) global developments
and trends, (d) cyber security risks and (e) recent changes to the Code of Corporate Governance and the Listing Rules.
To ensure the Directors can fulfil their obligations and to continually improve the performance of the Board, all Directors
are encouraged to undergo continual professional development during the term of their appointment, and provided with
opportunities to develop and maintain their skills and knowledge at the Company's expense.
Directors are encouraged to be members of the Singapore Institute of Directors ("SID") for them to receive updates and
training from SID to stay abreast of relevant developments in financial, legal and regulatory requirements, and the
business trends.
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BOARD COMPOSITION
The following table shows the composition of the Board and the various Board Committees:
Audit
Committee
Nominating
Committee
Remuneration
Committee
Risk
Management
Committee
Board
Executive
Committee
•
(Chairman)
Mr Charoen
Sirivadhanabhakdi
Non-executive and
Non-independent
Chairman
Khunying Wanna
Sirivadhanabhakdi
Non-executive and
Non-independent Vice
Chairman
Mr Panote
Sirivadhanabhakdi
Group Chief Executive
Officer, Executive and
Non-independent
Director
•
Mr Charles Mak
Ming Ying
Non-executive and
Lead Independent
Director
•
(Vice
Chairman)
•
(Chairman)
Mr Chan Heng Wing Non-executive and
Independent Director
Mr Philip Eng Heng
Nee
Non-executive and
Independent Director
Mr Tan Pheng Hock Non-executive and
Independent Director
Mr Wee Joo Yeow Non-executive and
•
Independent Director
Mr Weerawong
Chittmittrapap
Non-executive and
Independent Director
Mr Chotiphat
Bijananda
Non-executive and
Non-independent
Director
•
(Vice
Chairman)
Mr Sithichai
Chaikriangkrai
Non-executive and
Non-independent
Director
•
•
•
•
Profiles of each of the Directors can be found at on pages 12 to 18.
•
•
•
•
•
(Chairman)
•
(Chairman)
•
•
•
•
•
•
(Chairman)
•
As can be seen from the table above, other than the Group CEO, all of the Directors are non-executive and the Board
comprises a majority of Independent Directors.
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The NC has assessed that the current size and composition of the Board is appropriate for the scope and nature of the
Group's operations, and facilitates effective decision-making. No individual or group dominates the Board's decision-
making process or has unfettered powers of decision-making. The NC is of the opinion that the Directors with their diverse
backgrounds and experience provide the appropriate balance and mix of skills, knowledge, experience relevant to the
Group as they collectively bring with them a broad range of complementary competencies and experience. The Board is
well-diversified in terms of age group, nationality and other aspects of diversity.
Board Composition in terms of Age Group, Independence and Tenure (as at 30 September 2019)
Age Group
Independence
n Non-Executive and
36%
Non-Independent
Directors
n Non-Executive
and Independent
Directors
n Executive and
Non-Independent
Directors
55%
9%
n 41-50
9%
n 51-60
9%
n 61-70 36%
n 71-80 46%
Tenure
Between 6 – 7 years
3
Between 4 – 6 years
7
3 years or less
1
Number of Directors
The Company's Constitution provides that at least one-third of its Directors shall retire from office and are subject to re-
election at every annual general meeting of the Company ("AGM"). All Directors are required to retire from office at least
once every three years. Under its Terms of Reference, the NC is tasked with reviewing the succession plans for Directors,
and assessing and evaluating whether Directors retiring at each AGM are appropriate for re-appointment by virtue of
their skills, experience and contributions, and providing its recommendations to the Board. Newly-appointed Directors
during the year must also submit themselves for retirement and re-election at the next AGM immediately following their
appointment. The Shareholders approve the appointment or re-appointment of Board members at the AGM. Information
on the Directors that are seeking election or re-election at the upcoming AGM can be found on pages 383 to 393.
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The NC reviews the nominations for appointments and re-appointments to the Board and Board Committees, taking into
account, among other things, whether Directors (including those who hold multiple board representations and other
principal commitments) are able to and have been devoting sufficient time to discharge their responsibilities adequately
and identifying the balance of skills, knowledge and experience required for the Board to discharge its responsibilities
effectively. The process for the selection, appointment and re-appointment of Directors also takes into account the
composition and progressive renewal of the Board and Board Committees, each Director’s experience, education, expertise,
judgment, personal qualities and general and sector specific knowledge in relation to the needs of the Board as well as
whether the candidates will add diversity to the Board and whether they are likely to have adequate time to discharge
their duties. The NC considers a range of different channels to source and screen candidates for Board appointments,
depending on the requirements, including tapping on the existing networks of contacts and recommendations. Suitable
candidates are carefully evaluated by the NC so that recommendations made on proposed candidates are objective and
well supported. Instead of prescribing a maximum number of directorships and/or other principal commitments that
each Director may have, the NC adopts a holistic assessment of each Director's individual capacity and circumstances to
carry out his or her duties, taking into consideration not only the number of other board and other principal commitments
held by each Director, but also the nature and complexity of such commitments. The NC submitted its recommendations
for nominations of appointments and reappointments for approval by the Board.
Board Diversity Policy
The Board has adopted a board diversity policy. The NC will monitor and implement this policy, and will take the principles
of the policy into consideration when determining the optimal composition of the Board, and when recommending any
proposed changes to the Board. On the recommendation of the NC, the Board may set certain measurable objectives/
specific diversity targets, with a view to achieving an optimal Board composition, and these objectives/specific diversity
targets may be reviewed by the NC from time to time to ensure their appropriateness.
The Board views diversity at the Board level as an essential element for driving value in decision-making and proactively
seeks as part of its diversity policy, to maintain an appropriate balance of expertise, skills and attributes among the
Directors. This is reflected in the diversity of backgrounds and competencies of the Directors, whose competencies range
from banking, finance, accounting and legal to relevant industry knowledge, entrepreneurial and management experience,
and familiarity with regulatory requirements and risk management. This is beneficial to the Company and Management
as decisions by, and discussions with, the Board would be enriched by the broad range of views and perspectives and the
breadth of experience of the Directors.
Directors' Independence
The Directors complete a declaration of independence annually which is reviewed by the NC. The NC determines annually,
and as and when circumstances require, if a Director is independent. Based on the declarations of independence of the
Directors, having regard to the circumstances set forth in Provision 2.1 of the Code and taking into account Rule 210(5)(d)
of the Listing Rules, the NC and the Board have determined that there are six Independent Directors on the Board.
Based on their declarations, none of them has any relationship with the Company, its related corporations, the substantial
Shareholders or the Company's officers that could interfere, or reasonably be perceived to interfere, with the exercise of
each of their independent business judgment in the best interests of the Company. The NC reviewed the appointments
of Mr Philip Eng Heng Nee as (i) the chairman of the board of directors of Frasers Hospitality International Pte Ltd ("FHI")
and non-executive chairman of the approval committee of the Hospitality SBU, being one of the Management Sub-
Committees, (ii) a non-executive and non-independent director of Frasers Centrepoint Asset Management Ltd. (“FCAM”)
and a member of the Audit, Risk and Compliance Commitee of FCAM, and (iii) a member of the board of directors of Frasers
Property Australia Pty Ltd (“FPA”), and was satisfied that such appointments did not affect his continued ability to exercise
strong objective judgment and be independent in the expression of his views and in his participation in the deliberation
and decision making of the Board and the Board Committees of which he is a member. FHI is a wholly-owned subsidiary
of the Company within the Hospitality SBU, FPA is a wholly-owned subsidiary of the Company within the Frasers Property
Australia SBU and FCAM is a wholly-owned subsidiary of the Company.
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The Independent Directors lead the way in upholding good corporate governance at the Board level and their presence
facilitates the exercise of objective independent judgement on corporate affairs. Their participation and input also
ensure that key issues and strategies are critically reviewed, constructively challenged, fully discussed and thoroughly
examined, taking into account the long-term interests of FPL and its Shareholders. As of 30 September 2019, none of the
Independent Directors have been on the Board for more than nine years.
No alternate Directors have been appointed on the Board for FY2019.
Lead Independent Director
Mr Charles Mak Ming Ying, who has been an Independent Director of the Company since 25 October 2013, was appointed
as lead Independent Director (the "Lead Independent Director") on 8 May 2015. The Lead Independent Director provides
leadership in situations where the Chairman is conflicted, chairs Board meetings in the absence of the Chairman, and
is available to Shareholders where they have concerns and the normal channels of communication with the Chairman,
the Group CEO and the Group CFO may be inappropriate or inadequate. The Lead Independent Director represents
the Independent Directors in responding to Shareholders' and other stakeholders' questions that are directed to the
Independent Directors as a group, and has the authority to call for meetings of the Independent Directors, where necessary
and appropriate. The Lead Independent Director can call for a meeting of the Independent Directors and/or other non-
executive Directors when neccessary and appropriate without the presence of Management to provide a forum for them
for the frank exchange of any concerns which may be difficult to raise in Management's presence. The Lead Independent
Director thereafter provides feedback to the Chairman as appropriate.
Conflict Policy
To address and manage possible conflicts of interest that may arise between Directors' interests and those of the Group,
the Company, inter alia: (a) requires Directors to declare any interest in a transaction or proposed transaction with the
Group and any actual or potential conflict of interest as soon as practicable after the relevant facts have come to their
knowledge; and (b) requires such Directors to refrain from participating in meetings or discussions (or relevant segments
thereof), in addition to abstaining from voting, on any matter in which they have a direct or indirect personal material
interest.
For purchases of property in FPL property projects, there is also a policy which sets out the process and procedure for
disclosing, reporting and obtaining of relevant approvals for property purchases made by any Director, the Group CEO or
any other interested persons (as defined in the SGX-ST Listing Manual) and employees of the Group. The Company does
not have a practice of extending loans to Directors, and as at 30 September 2019, there were no loans granted by the
Company to Directors. If there are such loans, the Company will comply with its obligations under the Companies Act in
relation to loans, quasi-loans, credit transactions and related arrangements to Directors.
Board Performance Evaluation
The NC is tasked with making recommendations to the Board on the process and criteria for evaluation of the performance
of the Board, the Board Committees and the Directors.
The effectiveness of the Board as a whole, the Board Committees and the contribution by each Director to the effectiveness
of the Board is assessed annually. The Board, with the recommendations of the NC, has implemented a formal process for
assessing the effectiveness of the Board and its Board Committees and the contribution by each individual Director to the
effectiveness of the Board.
For FY2019, an independent external consultant, Ernst & Young LLP was appointed to facilitate the process of conducting
a Board evaluation survey. The external consultant has no connection with the Company or any of the Directors, apart
from being the consultant in previous financial year(s).
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The survey was designed to provide an evaluation of current effectiveness of the Board and to support the Chairman and
the Board in proactively considering what can enhance the readiness of the Board to address emerging strategic priorities
for the Company as a whole. As part of the survey, questionnaires were sent by the external consultant to the Directors to
obtain feedback, and interviews would be conducted to clarify the responses where required. The objective performance
criteria covered in the Board evaluation exercise translated into the following key segments covered in the questionnaires:
(1) the Board's contribution to the overall development of the Company's strategic and performance orientation; (2) Board
composition and skills; (3) Governance of the Board and organisation focus; (4) Board functions and dynamics, including
the Board's internal operations, as well as engagement with key investors, Shareholders and strategic stakeholders; (5)
the Board's relation with Management; (6) Director Performance; (7) Board's role in respect of Director development and
succession planning for the Board and Management; and (8) the effectiveness of the Board Committees. The responses to
the survey would be summarised by the external consultant and its report would be submitted to the NC. Findings and
recommendations of the external consultant which include feedback from Directors would be taken into consideration
and any necessary follow-up actions would be undertaken with a view to improving the overall effectiveness of the Board
in fufilling its role and meeting its responsibilites to Shareholders. Based on the NC’s review, the Board and the various
Board Committees operate effectively and each Director is contributing to the overall effectiveness of the Board.
REMUNERATION MATTERS
With the recommendations of the RC, the Board has put in place a formal and transparent process for developing
policies on Director and executive remuneration and for fixing the remuneration packages of individual Directors and key
Management.
Compensation Philosophy
The Group seeks to incentivise and reward consistent and sustained performance through market competitive, internally
equitable, performance-orientated and shareholder-aligned compensation programmes. This compensation philosophy
serves as the foundation for the Group's remuneration framework, and guides the Group's remuneration framework
and strategies. In addition, the Group's compensation philosophy seeks to align the aspirations and interests of its
employees with the interests of the Group and its Shareholders, resulting in the sharing of rewards for both employees
and Shareholders on a sustained basis. The Group's comprehensive human capital strategy serves to attract, motivate and
retain employees. The Group aims to connect employees' desire to develop and fulfil their aspirations with the growth
opportunities afforded by the Group's vision and corporate initiatives.
Compensation Principles
All compensation programme design, determination and administration are guided by the following principles:
(a)
Pay-for-Performance
The Group's Pay-for-Performance principle encourages excellence, in a manner consistent with the Group's core
values. The Group takes a total compensation approach, which recognises the value and responsibility of each role,
and differentiates and rewards performance through its incentive plans.
(b)
Shareholder Returns
Performance measures for incentives are established to drive initiatives and activities that are aligned with
both short-term value creation and long-term shareholder wealth creation, thus ensuring a focus on delivering
Shareholder returns.
(c)
Sustainable Performance
The Group believes sustained success depends on the balanced pursuit and consistent achievement of short and
long-term goals. Hence, variable incentives incorporate a significant pay-at-risk element to align employees with
sustainable performance for the Group.
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(d) Market Competitiveness
The Group aims to be market competitive by benchmarking its compensation levels with relevant comparators.
However, the Group embraces a holistic view of employee engagement that extends beyond monetary rewards.
Recognising each individual as unique, the Group seeks to motivate and develop employees through all the levers
available to the Group through its comprehensive human capital platform, including learning and development
and career advancement through vertical, lateral and diagonal moves within the Group.
Engagement of External Consultants
The RC may from time to time, and where necessary or required, engage external consultants in framing the remuneration
policy and determining the level and mix of remuneration for Directors and Management. Among other things, this
helps the Company to stay competitive in its remuneration packages. During FY2019, Korn Ferry was appointed as the
Company's remuneration consultant. The remuneration consultant does not have any relationship with the Company or
its Directors or Key Management Personnel which would affect its independence and objectivity.
Remuneration Framework
The RC reviews and makes recommendations to the Board on the remuneration framework for the Independent Directors
and other non-executive Directors, the Key Management Personnel and other management personnel of the Company.
The remuneration framework is endorsed by the Board.
The remuneration framework covers all aspects of remuneration including salaries, allowances, performance bonuses,
grant of share awards and incentives for the Key Management Personnel and fees for the Independent Directors and other
non-executive Directors.
Remuneration Policy in Respect of Management and Other Employees
The RC reviews the level, structure and mix of remuneration and benefits policies and practices (where appropriate) of the
Company, to ensure that they are appropriate and proportionate to the sustained performance of the Company, taking
into account the strategic objectives of the Company, and designed to attract, retain and motivate the Key Management
Personnel to successfully manage the Company for the long term. The RC takes into account all aspects of remuneration,
including termination terms, to ensure that they are fair.
The remuneration framework comprises fixed and variable components, which include short-term and long-term
incentives. When conducting its review of the remuneration framework, the RC takes into account Company and individual
performance. Company performance is measured based on pre-set financial and non-financial indicators. Individual
performance is measured via employee's annual appraisal based on indicators such as core values, competencies and key
performance indicators.
Fixed Component
The fixed component in the Company's remuneration framework is structured to reward employees for the role they
performed, and is benchmarked against relevant industry market data. It comprises base salary, fixed allowances and any
statutory contribution. The base salary and fixed allowances for each Key Management Personnel are reviewed annually
by RC and approved by the Board.
Variable Component
An appropriate proportion of Key Management Personnel's remuneration comprises a variable component which is
structured so as to link rewards to corporate and individual performance and incentivise sustained performance in both
the short and long term. The variable incentives are measured based on quantitative and qualitative targets, and overall
performance will be determined at the end of the year and approved by the RC.
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(1)
Short Term Incentive Plans
The short-term incentive plans aim to incentivise excellence in performance in the short term. All Key Management
Personnel are assessed using a balanced scorecard with pre-agreed financial and non-financial Key Performance
Indicators ("KPIs"). The financial KPIs comprise of Group and, where applicable, SBUs targets. Non-financial KPIs
may include measures on People, Sustainability, Corporate Governance or specified projects. These targets are
established at the beginning of each financial year. At the end of the financial year, the achievements are measured
against the pre-agreed targets and the short-term incentives of each Key Management Personnel are determined.
The RC recommends the final short-term incentives that are awarded to the Key Management Personnel for the
Board's approval, taking into consideration any other relevant circumstances.
(2)
Long Term Incentive Plans
The RC administers the Company's long-term incentive plans ("LTI Plans"), namely, the restricted share plan ("RSP")
and the performance share plan ("PSP"). The RSP and the PSP were approved by the Board and adopted on 25
October 2013. Through the LTI Plans, the Company seeks to foster a greater ownership culture within the Group
by aligning more directly the interests of Key Management Personnel and senior executives with the interest of the
Shareholders and other stakeholders, and for such employees to participate and share in the Group's growth and
success, thereby ensuring alignment with sustainable value creation for Shareholders over the long-term.
The RSP is available to a broader base of senior executives compared to the PSP. Its objectives are to increase
the Company's flexibility and effectiveness in its continuing efforts to attract, motivate and retain talented senior
executives and to reward these executives for the future performance of the Company. The PSP applies to senior
Management in key positions who shoulder the responsibility of the Company's future performance and who
are able to drive the growth of the Company through superior performance. They serve as further motivation to
the participants in striving for excellence, promoting the Company's long-term success and delivering long-term
Shareholder value.
Under the RSP and the PSP, the Company grants share-based awards ("Initial Awards") with pre-determined Group
performance targets being set at the beginning of performance period. The RC recommends the Initial Awards
granted to each Key Management Personnel to the Board for approval, taking into consideration the executive’s
individual performance. The performance period for the RSP and the PSP are two years and three years respectively.
For the RSP, the pre-set targets are Attributable Profit Before Fair value and Exceptional items (“APBFE”) and Return
on Capital Employed. For the PSP, the pre-set targets are Return on Invested Capital, Total Shareholders' Return
Relative to FTSE ST Real Estate Index and Absolute Shareholders' Return as a multiple of Cost of Equity. The RSP
and PSP awards represent the right to receive fully paid shares in the Company ("Shares"), their equivalent cash
value or a combination thereof, free of charge, provided certain prescribed performance conditions are met. Such
performance conditions are generally performance indicators that are key drivers of shareholder value creation and
aligned to the Group’s business objectives. The final number of Shares to be released ("Final Awards") will depend
on the achievement of the pre-determined Group performance targets at the end of the respective performance
period. If such targets are exceeded, more Shares than the Initial Awards can be delivered, subject to a maximum
multiplier of the Initial Awards. The Final Awards under the RSP will vest to the participants in three tranches over
two years after the two-year performance period. For the PSP, the Final Awards will vest fully at the end of the
three-year performance period. The vesting period under the RSP is between two to four years. The maximum
number of Shares which can be released, when aggregated with the number of new Shares issued pursuant to the
vesting of awards under the RSP and the PSP will not exceed ten percent (10%) in aggregate of the issued share
capital of the Company over the life of the RSP and the PSP of ten years respectively.
The RC has absolute discretion to decide on the Final Awards, taking into consideration any other relevant
circumstances.
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Approach to Remuneration of Key Management Personnel
The Company advocates a performance-based remuneration system that is highly flexible and responsive to the market,
which also takes into account the Company's performance and that of its employees.
In designing the compensation structure, the RC seeks to ensure that the level and mix of remuneration is competitive,
relevant and appropriate in finding a balance between current versus long-term compensation and between cash versus
equity incentive compensation.
Executives who have a greater ability to influence Group outcomes have a greater proportion of overall reward at risk.
The RC exercises broad discretion and independent judgement in ensuring that the amount and mix of compensation
are aligned with the interests of the Shareholders and other stakeholders and promote the long-term success of the
Company.
Performance Indicators for Key Management Personnel
As set out above, the Company's variable remuneration comprises short-term and long-term incentives, taking into
account both individual and Company's performance. This is to ensure employee reumeration is linked to performance.
In determining short-term incentives, both the Group and SBU's financial and non-financial performance as set out in
the balanced scorecard are taken into consideration. The performance targets under the LTI Plans of APBFE and Return
on Capital Employed (in the case of the RSP) and Return on Invested Capital, Total Shareholders' Return Relative to FTSE
ST Real Estate Index and Absolute Shareholders' Return as a multiple of Cost of Equity (in the case of the PSP) align the
interests of the Key Management Personnel with the long-term growth and performance of the Company. For FY2019,
the majority of pre-determined target performance levels for the RSP and the PSP grants were met.
Currently, the Company does not have claw-back provisions which allow it to reclaim incentive components of
remuneration from its Key Management Personnel in exceptional circumstances of misstatement of financial results or
misconduct resulting in financial loss.
Remuneration Packages of Key Management Personnel
The RC reviews and makes recommendations on the specific packages and service terms for the Group CEO and the other
Key Management Personnel for approval by the Board.
No Director or Key Management Personnel is involved in deciding his/her remuneration.
The Group CEO does not receive any fee for serving on the Board and Board Committees. As he is also an associate of a
substantial Shareholder, he does not participate in the RSP and PSP. The Group CEO's long-term incentive paid in the form
of cash is based on similar performance targets, performance periods and achievement factors of the RSP and the PSP.
Non-independent Directors abstain from any decisions relating to the Group CEO's remuneration.
The RC aligns the Group CEO's leadership, through appropriate remuneration and benefit policies, with the Company's
strategic objectives and key challenges. Performance targets are also set for the Group CEO and his performance is
evaluated yearly.
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Remuneration Policy in respect of Independent Directors and Other Non-Executive Directors
The remuneration of Independent Directors and other non-executive Directors has been designed to be appropriate to
the level of contribution, taking into account factors such as effort, time spent, and responsibilities, on the Board and
Board Committees, and to attract, retain and motivate the Directors to provide good stewardship of the Company.
Independent Directors and other non-executive Directors do not receive options, share-based incentives or bonuses.
The Company engages consultants to review Directors' fees by benchmarking such fees against the amounts paid by
listed industry peers. Each non-executive Director's and Independent Directors' remuneration comprises a basic fee
and attendance fees for attending Board and Board Committee meetings. In addition, non-executive Directors and
Independent Directors who perform additional services in Board Committees are paid an additional fee for such services.
The chairman of each Board Committee is also paid a higher fee compared with the members of the respective Board
Committees in view of the greater responsibility carried by that office. The following fee structure was presented to and
reviewed by the RC, and endorsed by the Board for FY2019:
Attendance Fee
(for physical
attendance in
Singapore or
home country of
Director)
(S$)
Attendance Fee
(for physical
attendance
outside Singapore
(excluding
home country of
Director))
(S$)
Basic Fee
(S$)
Attendance Fee
(for attendance
via tele / video
conference) (S$)
Lead Independent Director
200,000
120,000
100,000
Board
– Chairman
–
– Member
Audit Committee and EXCO
– Chairman
– Member
Remuneration Committee
– Chairman
– Member
Nominating Committee and Risk Management Committee
– Chairman
– Member
60,000
30,000
50,000
25,000
40,000
20,000
3,000
1,500
1,500
3,000
1,500
3,000
1,500
3,000
1,500
4,500 per trip
4,500 per trip
4,500 per trip
4,500 per trip
4,500 per trip
4,500 per trip
4,500 per trip
4,500 per trip
4,500 per trip
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
Shareholders' approval was obtained at the AGM on 29 January 2019, for the payment of the Directors' fees for FY2019 of
up to $2 million. Shareholders' approval will be sought at the 56th AGM on 29 January 2020 for the approval of Directors'
fees proposed for the financial year ending 30 September 2020, up to $2 million.
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Disclosure of Remuneration of Directors and Top Key Management Personnel
Information on the remuneration of Directors and Key Management Personnel of the Group for FY2019 is set out below.
Directors of the Company
Mr Charoen Sirivadhanabhakdi
Khunying Wanna Sirivadhanabhakdi
Mr Charles Mak Ming Ying
Mr Chan Heng Wing
Mr Philip Eng Heng Nee
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Mr Weerawong Chittmittrapap
Mr Chotiphat Bijananda
Mr Panote Sirivadhanabhakdi
Mr Sithichai Chaikriangkrai
Notes:
Remuneration
S$
–(1)
–(1)
317,000
187,500
217,500(2)
118,000
181,000
175,500
209,500
–(3)
202,500
(1) Mr Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi waived payment of Directors' fees due to them.
(2)
Excludes S$78,500, A$75,000 and S$120,000 being payment of directors' fees from FPL's subsidiaries, Frasers Centrepoint Asset Management Ltd., Frasers
Property Australia Pty Ltd and FHI, respectively.
(3) Mr Panote Sirivadhanabhakdi, the Group CEO, who is an executive Director, is not paid director's fees.
Remuneration of Group CEO for
Year Ended 30 September 2019
Mr Panote Sirivadhanabhakdi
Remuneration
(S$)
3,945,143
Salary
%
24
Bonus
%
35
Allowances
and Benefits
%
17
Long Term
Incentives(1)
%
24(2)
Bonus
%
Allowances
and Benefits
%
Long Term
Incentives(1)
%
33
Salary
%
Remuneration of Key Management Personnel for
Year Ended 30 September 2019
Between S$3,250,001 and S$3,500,000
Mr Rodney Fehring
Between S$1,500,001 and S$1,750,000
Mr Chia Khong Shoong
Mr Christopher Tang Kok Kai
Between S$1,250,001 and S$1,500,000
Mr Uten Lohachitpitaks
Between S$1,000,001 and S$1,250,000
Mr Loo Choo Leong
Between S$500,001 and S$750,000
Mr Choe Peng Sum (3)
Mr Koh Teck Chuan (5)
Aggregate Total Remuneration of Key Management Personnel
40
38
38
65
46
40
36
24
27
26
22
–(4)
29
13
4
4
3
4
7
6
Total
%
100
Total
%
100
100
100
100
100
18
32
31
31
28
55
–(6)
100
100
S$10,345,980
Notes:
(1)
(2)
The value of long term incentives was calculated based on the closing share price of S$1.65 on 19 December 2018.
The long term incentives for Mr Panote Sirivadhanabhakdi will be paid in the form of cash based on similar performance targets, performance periods, vesting
periods and achievement factors of the RSP and the PSP.
(3) Mr Choe Peng Sum ceased to be appointed as the CEO of the Hospitality SBU on 15 February 2019 , as such, the remuneration disclosed is for the period from
1 October 2018 to 15 February 2019.
(4) No bonus was paid during Mr Choe Peng Sum’s appointment as CEO of the Hospitality SBU from 1 October 2018 to 15 February 2019.
(5) Mr Koh Teck Chuan was appointed as the CEO of the Hospitality SBU on 19 February 2019, as such, the remuneration disclosed is for the period from
19 February 2019 to 30 September 2019.
(6) No long term incentives were granted since Mr Koh Teck Chuan’s appointment as CEO of the Hospitality SBU is from 19 February 2019 to 30 September 2019.
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There are no existing or proposed service agreements entered into or to be entered into by the Company or any of its
subsidiaries with Directors, the Group CEO or other Key Management Personnel which provide for compensation in the
form of stock options, or pension, retirement or other similar benefits, or other benefits, upon termination of employment.
The Company has not disclosed exact details of the remuneration of each Key Management Personnel due to the highly
competitive human resource environment and the confidential nature of staff remuneration matters.
As at 30 September 2019, save for the Group CEO, there are no employees within the Group who is a substantial
Shareholder or an immediate family member of a Director or substantial Shareholder, and whose remuneration (from the
Company and its subsidiaries) exceeds $100,000 during the year.
FINANCIAL PERFORMANCE, REPORTING AND AUDIT
The Board is responsible for providing a balanced and understandable assessment of the Company's and the Group's
performance, position and prospects, including interim and other price sensitive public reports, and reports to regulators
(if required).
The Company prepares its financial statements in accordance with the Singapore Financial Reporting Standards
(International) prescribed by the Accounting Standards Council.
The Board provides Shareholders with quarterly and annual financial reports, and releases its quarterly and full year
financial results, other price sensitive information and material corporate developments through announcements to the
SGX-ST and, where appropriate, press releases, the Company's website and media and analysts' briefings.
In communicating and disseminating its results, the Company aims to present a balanced and clear assessment of the
Group's performance, position and prospects.
In order to enable the Board to obtain a timely and informed assessment of the Company's position, Management furnishes
accounts to it on a quarterly basis, with monthly management accounts to be provided as the Board may request from
time to time. Such reports keep the Board members informed of the Company's and the Group's performance, position
and prospects.
External Audit
The AC conducts an assessment of the external auditors, and recommends its appointment or re-appointment to the
Board. The assessment is based on factors such as the performance and quality of its audit and the independence of the
auditors.
In the AGM held on 29 January 2019, KPMG LLP was reappointed by Shareholders as the external auditors of the Company
for FY2019. Pursuant to the requirements of the SGX-ST, an audit partner may only be in charge of a maximum of five
consecutive annual audits and may then return after two years. KPMG LLP has met this requirement, and the current
KPMG LLP audit partner for the Group has been appointed since the AGM held on 29 January 2016.
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During the year, the AC conducted a review of the scope and results of audit by the external auditors and its cost
effectiveness, as well as the independence and objectivity of the external auditors. It also reviewed all non-audit services
provided by the external auditors, and the aggregate amount of audit fees paid to them. Details of fees payable to the
external auditors in respect of audit and non-audit services for FY2019 are set out in the table below:
Fees Relating to External Auditors for FY2019
For Audit and Audit-Related Services
For Non-Audit Services
Total
SGD (Million)
5.97
2.33
8.30
The AC is satisfied that neither their independence nor their objectivity is put at risk, and that they are still able to meet
the audit requirements and statutory obligations of the Company. It is also satisfied with the aggregate amount of audit
fees paid to the external auditors.
The Company has complied with Rule 712 of the Listing Rules which requires, amongst others, that a suitable auditing
firm should be appointed by the Company. The Company has also complied with Rule 715 of the Listing Rules which
requires that the same auditing firm of the Company based in Singapore audits its Singapore-incorporated subsidiaries
and significant associated companies, and that a suitable auditing firm be engaged for its significant foreign-incorporated
subsidiaries and associated companies.
In the review of the financial statements for FY2019, the AC discussed the following key audit matters identified by the
external auditors with Management:
Key Audit Matter
Valuation of Development
Properties for Sale
Review by the AC
The AC considered the methodology applied to the valuation of development properties
held for sale, focusing on development projects in markets faced with challenging conditions
or, with slower than expected sales. Where appropriate, the AC had inquired of Management
on its basis and its strategy to sell the unsold units.
The AC has also considered the findings of the external auditors on Management’s assessment
of the net realisable value of these development projects.
The AC was satisfied with the approach and assessment adopted by Management in arriving
at the net realisable value of the development projects as at 30 September 2019.
Valuation of Investment
Properties
The AC considered the methodologies and key assumptions applied by the valuers in arriving
at the valuation of investment properties.
The AC reviewed the outputs from the year-end valuation process of the Group’s investment
properties and discussed the details of the valuation with Management, focusing on
significant changes in fair value measurements and key drivers of the changes.
The AC considered the findings of the external auditors, including their assessment of the
appropriateness of valuation methodologies and the underlying key assumptions applied in
the valuation of investment properties.
The AC was satisfied with the valuation process, the methodologies used and the valuation
for investment properties as adopted as at 30 September 2019.
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Recoverability of
Intangible Assets
The AC considered the methodologies and key assumptions applied by Management for its
annual impairment tests of the Group’s intangible assets.
The AC also considered the external auditors’ findings on Management’s estimates of the
recoverable amounts supporting the intangible assets, the methodologies applied and
key assumptions used. Where applicable, the AC was briefed on the sensitivity of the key
assumptions on the available headroom.
The AC was satisfied with the methodologies and key assumptions used in supporting
Management’s assessment of the carrying value of the
intangible assets as at
30 September 2019.
Significant Business
Acquisitions
The AC considered Management’s use of independent valuation specialists to assist
Management in arriving at its purchase price allocation (“PPA”) assessments. The PPA
assessments involved the use of valuation methodologies and certain assumptions to derive
the fair value estimates of identified assets and liabilities and the resulting goodwill, if any.
The AC also considered the findings of the external auditors on the PPA assessments
performed by Management.
The AC was satisfied that the PPA exercise was conducted appropriately and the
methodologies used and the amounts adopted in the financial statements were appropriate.
GOVERNANCE OF RISK AND INTERNAL CONTROLS
The Board is responsible for the governance of risk and ensures that Management maintains a sound system of risk
management and internal controls. The Company maintains a sound system of risk management and internal controls
with a view to safeguarding the interests of the Company and its Shareholders and the Company's assets.
Enterprise Risk Management and Risk Tolerance
Assisted by the RMC, the Board oversees and determines the nature and extent of the significant risks which the
Company is willing to take in achieving its strategic objectives and value creation. With the assistance of the RMC, the
Board determines the Company's risk appetite, assesses the Group's risk profile, material risks, and mitigation plan,
provides advice to Management in formulating the risk management framework, policies and guidelines, and oversees
Management in the implementation of the risk management and internal control systems.
The Company has adopted an enterprise-wide risk management framework ("ERM Framework") to enhance its risk
management capabilities. The Board is assisted by the RMC to oversee the ERM Framework. Key risks, mitigating
measures and management actions are continually identified, reviewed and monitored as part of the ERM Framework.
Where applicable, financial and operational key risk indicators are put in place to track key risk exposures. Apart from
the ERM Framework, key business risks are thoroughly assessed by Management and each significant transaction is
comprehensively analysed so that Management understands the risks involved before it is embarked upon. An outline of
the Group's ERM Framework is set out on pages 141 to 142.
Periodic updates are provided to the RMC on the Group's risk profile. These updates include assessments of the Group's
key risks by major business units, highlights of emerging risks, the implementation status of the risk mitigation plan and
changes in plans undertaken by Management to manage key risks, as well as reports on risk tolerance status. The Group's
risk tolerance statements have been developed by Management, and approved by the RMC on behalf of the Board.
The risk tolerance statements set out the nature and extent of the significant risks that the Group is willing to take in
achieving its strategic objectives. The accompanying risk tolerance thresholds, which set the risk boundaries in various
strategic and operational areas, are reviewed and monitored closely by Management, and reported to the RMC. The
tolerance statements and risk thresholds are revised annually to ensure they are aligned with the Group’s business
strategies.
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Annual Report 2019 167
To assist the Board in ascertaining the adequacy and effectiveness of the Group's internal controls, Management has in
place a control self-assessment exercise for key business processes and separately maps out key operational risks with
the existing assurance processes in a comfort matrix every year. Management carries out control self-assessment in key
areas of the business and operations to self-evaluate the internal controls status. Using a comfort matrix of key risks,
the material financial, operational, compliance and information technology risks of the Company are documented by
the business units and presented against strategies, policies, people, processes, systems, mechanisms and reporting
processes that have been put in place.
Internal Controls
The AC, on behalf of the Board, undertakes the monitoring and review of the system of internal controls. The AC, with
the assistance of internal and external auditors, reviews and reports to the Board on the adequacy and effectiveness
of the Company’s system of controls, including financial, operational, compliance and information technology controls,
established by Management, and highlights to the Board any significant findings. In assessing the effectiveness of internal
controls, the AC ensures primarily that key objectives are met, material assets are properly safeguarded, fraud or errors in
the accounting records are prevented or detected, accounting records are accurate and complete, and reliable financial
information is prepared in compliance with applicable internal policies, laws and regulations.
Management Assurance
The heads of business units are required to provide the Company with written assurances as to the adequacy and
effectiveness of their system of internal controls and risk management. Assurances are also sought from the Company's
internal auditors based on their independent assessments. The Board has received the relevant assurances from:
Financial Records and Financial Statements
a)
the Group CEO and the Group CFO that as at 30 September 2019, the financial records of the Group have been
properly maintained and the financial statements for FY2019 give a true and fair view of the Group’s operations
and finances;
System of Internal Controls
b) 101 (i)
10101 (ii)
the Group CEO, the Group CCO, the Group CFO and the Group CIO, that the system of internal controls in
place for the Group is adequate and effective as at 30 September 2019 to address financial, operational,
compliance and information technology risks which the Group considers relevant and material to its
operations; and
the CEOs of each of the Group’s strategic business units (“SBU CEOs”) that the system of internal controls
in place for their respective strategic business units is adequate and effective as at 30 September 2019 to
address financial, operational, compliance and information technology risks for their respective strategic
business units which the Group considers relevant and material to its operations; and
Risk Management System
c) 101 (i)
the Group CEO, the Group CCO, the Group CFO and the Group CIO, that the risk management system in place
for the Group is adequate and effective as at 30 September 2019 to address risks which the Group considers
relevant and material to its operations; and
10101 (ii)
each of the SBU CEOs that the risk management system in place for their respective strategic business units
is adequate and effective as at 30 September 2019 to address risks for their respective strategic business
units which the Group considers relevant and material to its operations.
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Board’s Comment
Based on the internal controls established and maintained by the Group, work performed by internal and external auditors,
reviews performed by Management and various Board Committees and the relevant assurances from the Group CEO, the
Group CCO, the Group CFO, the Group CIO and the SBU CEOs, the Board is of the view that the Group’s internal controls
were adequate and effective as at 30 September 2019 to address financial, operational, compliance and information
technology risks, which the Group considers relevant and material to its operations.
Based on the Enterprise-wide risk management framework established and adopted by the Company, review performed
by Management and the relevant assurances from the Group CEO, the Group CCO, the Group CFO, the Group CIO and
the SBU CEOs, the Board is of the view that the Group’s risk management system was adequate and effective as at 30
September 2019 to address risks which the Group considers relevant and material to its operations.
The Board notes that the system of internal controls and risk management provides reasonable, but not absolute, assurance
that the Group will not be adversely affected by any event that could be reasonably foreseen as it works to achieve its
business objectives. In this regard, the Board also notes that no system of internal controls and risk management can
provide absolute assurance against the occurrence of material errors, poor judgment in decision making, human error,
losses, fraud or other irregularities.
The AC concurs with the Board’s view that as at 30 September 2019, the Group’s internal controls (including financial,
operational, compliance and information technology controls) and risk management systems were adequate and effective
to address risks which the Group considers relevant and material to its operations.
Internal Audit
The Group's internal audit department ("FPL Group IA") is responsible for conducting objective and independent
assessments on the adequacy and effectiveness of the Group's system of internal controls, risk management and
governance practices. The Head of the FPL Group IA reports directly to the Chairman of the AC and administratively, to the
Group CEO. The appointment and removal of the Head of the FPL Group IA requires the approval of the AC. In performing
internal audit services, FPL Group IA has adopted and complies with the Standards for the Professional Practice of Internal
Auditing set by The Institute of Internal Auditors, Inc.
FPL Group IA comprises 23 professional staff. The Head of FPL Group IA and the Singapore-based FPL Group IA staff
are members of The Institute of Internal Auditors, Singapore. To ensure that the internal audit activities are effectively
performed, FPL Group IA recruits and employs suitably qualified staff with the requisite skills and experience. Such staff
are given relevant training and development opportunities to update their technical knowledge and auditing skills. All
staff members of FPL Group IA also receive relevant technical training and attend seminars organised by The Institute of
Internal Auditors, Singapore and other professional bodies. FPL Group IA operates within the framework of a set of terms
of reference as contained in the Internal Audit Charter approved by the AC. The FPL Group IA function adopts a risk-based
audit methodology to develop its audit plans, and its activities are aligned to key risks of the Group. The results of the
risk assessments determine the level of focus and the review intervals for the various activities audited. FPL Group IA
conducts its audit reviews based on internal audit plans approved by the AC. FPL Group IA has unfettered access to all the
Group companies' documents, records, properties and personnel, including access to the AC members. All audit reports
detailing audit findings and recommendations are provided to Management who would respond with the actions to be
taken.
Each quarter, FPL Group IA will submit reports to the AC on the status of the audit plans and on audit findings and actions
taken by Management on such findings. Key findings are highlighted at AC meetings for discussion. The AC monitors
the timely and proper implementation of the required follow-up measures undertaken by Management. The AC is
satisfied that the internal audit function is independent and effective and that FPL Group IA has adequate resources and
appropriate standing within the Group to perform its functions effectively. Quality assurance reviews on the Group's
internal audit function are periodically carried out by qualified professionals from an external organisation. The last
review was performed in January 2018.
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Annual Report 2019 169
Whistle-Blowing Policy
The Company has in place a whistle-blowing policy (the "Whistle-Blowing Policy"). The Whistle-Blowing Policy
provides an independent feedback channel through which matters of concern about possible improprieties in matters of
financial reporting, suspected fraud and corruption or other matters may be raised by employees and any other persons
in confidence and in good faith, without fear of reprisal. Whistle-blowers may report any matters of concern by mail,
electronic mail or by calling a hotline, details of which are provided in the Whistle-Blowing Policy, which is made available
on the Company’s website. Any report submitted through this channel would be received by the Head of FPL Group IA.
For employees, the Whistle-Blowing Policy provides assurance that employees will be treated fairly, and protected from
reprisals or victimisation for whistle-blowing in good faith.
The improprieties that are reportable under the Whistle-Blowing Policy include: (a) financial or professional misconduct;
(b) improper conduct, dishonest, fraudulent or unethical behaviour; (c) any irregularity or non-compliance with laws/
regulations or the Company’s policies and procedures, and/or internal controls; (d) violence at the workplace, or any conduct
that may threaten health and safety; (e) corruption or bribery; (f) conflicts of interest; and (g) any other improprieties or
matters that may adversely affect Shareholders' interest in, and assets of, the Company and its reputation. The Whistle-
Blowing Policy is covered during staff training. All whistle-blowing complaints raised are investigated and if appropriate,
an independent investigation committee constituted. The outcome of each investigation and any action taken is reported
to the AC. The AC reviews and ensures that independent investigations and any appropriate follow-up actions are carried
out.
SHAREHOLDER MATTERS
The Company treats all Shareholders fairly and equitably in order to enable them to exercise their Shareholders' rights
and have the opportunity to communicate their views on matters affecting the Company.
Investor Relations
The Company prides itself on its high standards of disclosure and corporate transparency. FPL aims to provide fair, relevant,
comprehensive and timely information regarding the Group's performance and progress and matters concerning the
Group and its business which are likely to materially affect the price of the Shares, and other securities of the Company, to
Shareholders and the investment community, to enable them to make informed investment decisions.
The Group's dedicated Investor Relations ("IR") team is tasked with, and focuses on, facilitating communications between
the Company and its Shareholders, as well as with the investment community. The Company has an IR policy which allows
for an ongoing exchange of views so as to actively engage and promote regular, effective and fair communication with
Shareholders.
Frank and informed dialogue between the Company and Shareholders is a central tenet of good corporate governance,
and encourages more active stewardship. Better engagement between these parties will thus benefit the Company
and investors. The IR team communicates regularly with Shareholders, as well as with the investment community,
through timely disclosures of material and other pertinent information to the SGX-ST, and quarterly results briefings and
conference calls. The IR team also conducts roadshows (together with senior Management), and participates in investor
seminars and conferences to keep the market and investors apprised of the Group's corporate developments and financial
performance.
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During the year, the IR team, together with senior Management, engaged with Singapore and foreign investors at
conferences, briefings and calls, non-deal roadshows as well as one-on-one and group meetings. The aim of such
engagements is to provide Shareholders and investors with prompt disclosure of relevant information, to enable them to
have a better understanding of the Company's businesses and performance. The Company makes available all its briefing
materials to analysts and the media, webcasts of its half-year and full-year results briefings, its financial information, its
annual reports, and all announcements to the SGX-ST on its website at https://www.frasersproperty.com. The Company
maintains and regularly updates its corporate website to communicate and engage with Shareholders and other
stakeholders.
Further details on the various activities organised by IR during the year can be found in the IR section of the FY2019
Annual Report on pages 92 to 93.
The contact details of the IR team for Shareholders, investors and other stakeholders to channel their comments and
queries can be found on the Company’s website, as well as in the IR section of the FY2019 Annual Report on page 92.
An electronic copy of the FY2019 Annual Report has been uploaded on the Company's website. Shareholders can
access the FY2019 Annual Report (printed copies are available upon request) at https://investor.frasersproperty.com/
publications.html.
Conduct of General Meetings
The Board supports and encourages active shareholder participation at AGMs as it believes that general meetings
serve as an opportune forum for Shareholders to meet the Board and senior Management, and to interact with them.
Shareholders are given the opportunity to participate effectively and vote at general meetings of the Company, where
relevant rules and procedures governing such meetings (for instance, how to vote) are clearly communicated prior to the
start of the meeting.
The Company's Constitution allows (a) each Shareholder who is not a relevant intermediary (as defined in the Companies
Act) the right to appoint up to two proxies and (b) each Shareholder who is a relevant intermediary to appoint more than
two proxies to attend and vote on their behalf in Shareholders' meetings.
At general meetings, the Company sets out separate resolutions on each substantially separate matter. Shareholders are
given the opportunity to raise questions and clarify any issues that they may have relating to the resolutions sought to
be passed.
For greater transparency, the Company has implemented electronic poll voting at AGMs. This entails Shareholders being
invited to vote on each of the resolutions by poll, using an electronic voting system (instead of voting by hands), thereby
allowing all Shareholders present or represented at the meeting to vote on a one share, one vote basis. The voting results
of all votes cast for, against, or abstaining from each resolution is then screened at the meeting and announced to the
SGX-ST after the meeting. An independent external party is appointed as scrutineer for the electronic voting process to
count and validate the votes at general meetings. The Company will continue to use the electronic poll voting system at
the forthcoming AGM. As the authentication of shareholder identity and other related security and integrity issues still
remain a concern, the Company has decided for the time being, not to implement absentia voting methods such as voting
via mail, e-mail or fax.
At the AGM, a video presentation is made to Shareholders to update on the Company's performance, position and
prospects. The links to the presentation materials are made available on SGXNET and the Company's website for the
benefit of Shareholders.
Board members and senior Management are present at each Shareholders' meeting to respond to any questions from
Shareholders, unless they are unable to attend due to exigencies. The Company's external auditors are also present to
address queries about the conduct of audit and the preparation and content of the auditors' report.
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Annual Report 2019 171
The minutes of Shareholders' meetings which capture the attendance of Board members at the meetings, matters
approved by Shareholders, voting results and substantial and relevant comments or queries from Shareholders relating
to the agenda of the general meeting together with responses from the Board and Management, are prepared by the
Company. These minutes are published on the Company's website as soon as practicable.
Dividend Policy
As previously disclosed in the Introductory Document issued by the Company on 28 October 2013 in connection with
its listing on the SGX-ST, the Company intends to recommend dividends of up to 75% of its net profit after tax after
considering factors such as its level of cash and reserves, results of operations, business prospects, capital requirements
and surplus, general financial condition, contractual restrictions, the absence of any circumstances which might reduce
the amount of reserves available to pay dividends and other factors relevant to the Board (including the expected financial
performance of the Company).
The Company has maintained a historical payout ratio of 50% to 60% of APBFE before distribution to perpetual securities
holders. For FY2019, the Board has proposed a final dividend of 3.6 Singapore cents per share which, if approved at the
AGM to be held on 29 January 2020, will, together with the interim dividend of 2.4 Singapore cents per share paid on 10
June 2019, bring the total dividend payout for FY2019 to 6.0 Singapore cents per share.
STAKEHOLDER ENGAGEMENT
The Board adopts an inclusive approach by considering and balancing the needs and interests of material stakeholders, as
part of its overall responsibility to ensure that the best interests of the Company are served.
The Company has adopted a Code of Business Conduct, with the key objectives of providing clear guidelines on ethics and
relationships, in order to safeguard the reputation and interests of the Group and stakeholders of the Company. The Code
of Business Conduct sets out the policies and procedures dealing with various issues such as conflicts of interests, the
maintenance of records and reports, equal employment opportunities and sexual harassment and governs the conduct
of employees, and where applicable, is also made available to other stakeholders of the Group such as the Group's agents,
suppliers, business associates and customers.
In order to review and assess the material topics relevant to the Company's business activities, the Company from time
to time proactively engages with various stakeholders, including employees, contractors and suppliers, customers and
tenants, and the investment community to gather feedback on the sustainability issues most important to them. Please
refer to the Sustainability Report on pages 96 to 137 of this annual report, which sets out information on the Company's
arrangements to identify and engage with its material stakeholder groups and to manage its relationships with such
groups, and the Company's strategy and key areas of focus in relation to the management of stakeholder relationships
during FY2019.
POLICY ON DEALINGS IN SECURITIES
The Company has established a procedure regarding dealings in the securities of the Company. In compliance with
Listing Rule 1207(19) of the SGX-ST Listing Manual on best practices on dealing in securities, the Group issues quarterly
reminders to its Directors, officers and employees on the restrictions in dealings in listed securities of the Group during
the period commencing (a) two weeks prior to the announcement of financial results of each of the first three quarters
of the financial year, and (b) one month before the announcement of full year results, and ending on the date of such
announcements. Directors, officers and employees are also reminded not to trade in listed securities of the Group at any
time while in possession of unpublished price sensitive information and to refrain from dealing in the Group's securities
on short-term considerations. Directors and the Group CEO are also required to report their dealings in the Company's
securities within two business days.
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Corporate Governance
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SUMMARY OF COMPLIANCE WITH EXPRESS DISCLOSURES REQUIREMENTS IN PRINCIPLES AND PROVISIONS OF
THE CODE
PRINCIPLES AND PROVISIONS OF THE CODE
THE BOARD'S CONDUCT OF AFFAIRS
PAGE REFERENCE OF
ANNUAL REPORT
Provision 1.2
Induction, training and development provided to new and existing
Directors
153
150 to 153
145 to 150
151
156
156
156 to 157
Provision 1.3
Matters requiring Board approval
Provision 1.4
Names of Board Committee members, terms of reference of Board
Committees, any delegation of Board's authority to make decisions and a
summary of each Board Committee's activities
Provision 1.5
Number of Board and Board Committee meetings and each individual
Directors' attendances at such meeting
BOARD COMPOSITION AND GUIDANCE
Provision 2.4
The Board diversity policy and progress made towards implementation of
the policy, including objectives
BOARD MEMBERSHIP
Provision 4.3
Provision 4.4
Provision 4.5
BOARD PERFORMANCE
Provision 5.2
Process for the selection, appointment and reappointment of Directors to
the Board, including the criteria used to identify and evaluate potential
new Directors and channels used in searching for appropriate candidates
Relationships that Independent Directors have with the Company, its
related corporations, its substantial shareholders or its officers, if any,
which may affect their independence, and the reasons why the Board,
having taken into account the views of the NC, has determined that such
Directors are still independent
Listed company directorships and principal commitments of each Director,
and where a Director holds a significant number of such directorships and
commitments, the NC's and Board's reasoned assessment of the ability of
the Director to diligently discharge his or her duties
156
How the assessments of the Board, its Board Committees and each
Director have been conducted, including the identity of any external
facilitator and its connection, if any, with the Company or any of its
Directors
157 to 158
PROCEDURES FOR DEVELOPING REMUNERATION POLICIES
Provision 6.4
Engagement of any remuneration consultants and their independence
159
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Corporate Governance
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Annual Report 2019 173
PRINCIPLES AND PROVISIONS OF THE CODE
DISCLOSURE ON REMUNERATION
PAGE REFERENCE OF
ANNUAL REPORT
Provision 8.1
Policy and criteria for setting remuneration, as well as names, amounts
and breakdown of remuneration of:
158 to 164
Provision 8.2
(a) each individual Director and the CEO; and
(b) at least the top five key management personnel (who are not Directors
or the CEO) in bands no wider than S$250,000 and in aggregate the
total remuneration paid to these key management personnel
Names and remuneration of employees who are substantial shareholders
of the Company, or are immediate family members of a Director, the CEO
or a substantial shareholder, and whose remuneration exceeds S$100,000
during the year, in bands no wider than S$100,000. The employee's
relationship with the relevant director or the CEO or substantial
shareholders should also be stated.
163 to 164
Provision 8.3
All forms of remuneration and other payments and benefits, paid by the
Company and its subsidiaries to directors and key management personnel
of the Company
163 to 164
RISK MANAGEMENT AND INTERNAL CONTROLS
Provision 9.2
Board's assurance from:
(a) the CEO and the CFO that the financial records have been properly
maintained and the financial statements give a true and fair view of
the company's operations and finances; and
(b) the CEO and other key management personnel who are responsible,
regarding the adequacy and effectiveness of the company's risk
management and internal control systems.
167 to 168
SHAREHOLDER RIGHTS AND ENGAGEMENT
SHAREHOLDER RIGHTS AND CONDUCT OF GENERAL MEETINGS
Provision 11.3
Directors' attendance at general meetings of shareholders held during
the financial year
151
ENGAGEMENT WITH SHAREHOLDERS
Provision 12.1
Steps taken by the Company to solicit and understand the views of
shareholders
169 to 171
ENGAGEMENT WITH STAKEHOLDERS
Provision 13.2
The Company's strategy and key areas of focus in relation to the
management of stakeholder relationships during the reporting period
171
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174 Frasers Property Limited
Financial
Statements
Contents
175 Directors’ Statement
181
Independent Auditors’ Report
187 Consolidated Profit Statement
188 Consolidated Statement of Comprehensive Income
189 Balance Sheets
190 Statements of Changes in Equity
194 Consolidated Cash Flow Statement
197 Notes to the Financial Statements
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Directors’
Statement
Annual Report 2019 175
The Directors have pleasure in presenting their statement together with the audited financial statements of Frasers
Property Limited (the “Company”) and its subsidiaries (the “Group”) for the financial year ended 30 September 2019.
1.
OPINION OF THE DIRECTORS
In the opinion of the Directors,
(i)
the consolidated financial statements of the Group set out in pages 187 to 349 are drawn up so as to give
a true and fair view of the financial position of the Group and of the Company as at 30 September 2019
and of the financial performance, changes in equity and cash flows of the Group and changes in equity of
the Company for the year ended 30 September 2019 in accordance with the provisions of the Singapore
Companies Act, Chapter 50 and Singapore Financial Reporting Standards (International); and
(ii)
at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay
its debts as and when they fall due.
The Board of Directors has, on the date of the statement, authorised these financial statements for issue.
2.
DIRECTORS
The Directors of the Company in office at the date of this statement are:
(Chairman)
Mr Charoen Sirivadhanabhakdi
Khunying Wanna Sirivadhanabhakdi (Vice Chairman)
Mr Panote Sirivadhanabhakdi
Mr Charles Mak Ming Ying
Mr Chan Heng Wing
Mr Philip Eng Heng Nee
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Mr Weerawong Chittmittrapap
Mr Chotiphat Bijananda
Mr Sithichai Chaikriangkrai
3.
ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE SHARES AND DEBENTURES
Neither at the end of, nor at any time during, the financial year was the Company a party to any arrangement
whose object was to enable the Directors of the Company to acquire benefits by means of an acquisition of shares
in, or debentures of, the Company or any other body corporate, other than as disclosed in this statement.
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176 Frasers Property Limited
Directors’
Statement
4.
DIRECTORS' INTERESTS IN SHARES AND DEBENTURES
(a)
The following Directors who held office at the end of the financial year had, according to the register of Directors’
shareholdings, required to be kept under Section 164 of the Companies Act of Singapore (Chapter 50), an interest
in the shares in or debentures of the Company and its related corporations (other than wholly-owned subsidiaries)
as stated below:
Name of Director
Charoen Sirivadhanabhakdi
– Frasers Property Limited
• Ordinary Shares
– Frasers Property Treasury Pte. Ltd.
• S$600,000,000 4.88%
Subordinated Perpetual
Securities (Series 3)
• S$700,000,000 5.00%
Subordinated Perpetual
Securities (Series 5)
– Fraser and Neave, Limited
• Ordinary Shares
– Fraser & Neave Holdings Bhd
• Ordinary Shares
– TCC Assets Limited
• Ordinary Shares
Khunying Wanna Sirivadhanabhakdi
– Frasers Property Limited
Direct Interest
As at
1 Oct 2018
As at
30 Sep 2019
Deemed Interest
As at
1 Oct 2018
As at
30 Sep 2019
–
– 2,541,007,768 (1)
2,541,007,768 (1)
–
–
–
–
– S$250,000,000 (2)
– (2)
–
S$300,000,000 (3)
S$300,000,000 (3)
– 1,270,503,884 (4)
1,270,503,884 (4)
–
203,470,910 (5)
203,470,910 (5)
25,000
25,000
–
–
• Ordinary Shares
–
– 2,541,007,768 (1)
2,541,007,768 (1)
– Frasers Property Treasury Pte. Ltd.
• S$600,000,000 4.88%
Subordinated Perpetual
Securities (Series 3)
• S$700,000,000 5.00%
Subordinated Perpetual
Securities (Series 5)
– Fraser and Neave, Limited
• Ordinary Shares
– Fraser & Neave Holdings Bhd
• Ordinary Shares
– TCC Assets Limited
• Ordinary Shares
–
–
–
–
– S$250,000,000 (2)
– (2)
–
S$300,000,000 (3)
S$300,000,000 (3)
– 1,270,503,884 (4)
1,270,503,884 (4)
–
203,470,910 (5)
203,470,910 (5)
25,000
25,000
–
–
(1) As of 30 September 2019, Charoen Sirivadhanabhakdi and his spouse, Khunying Wanna Sirivadhanabhakdi are deemed to be interested in an
aggregate of 2,541,007,768 shares in the Company.
Each of Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi owns 50% of the issued and paid-up share capital of TCC Assets Limited
("TCCA"), and is therefore deemed to be interested in all of the 1,716,160,124 shares in the Company in which TCCA has an interest.
Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi also jointly hold a 51% direct interest in Siriwana Company Limited, which in
turn holds an aggregate of approximately 45.27% interest in Thai Beverage Public Company Limited (“ThaiBev”).
Further, Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi also jointly hold a 100% direct interest in MM Group Limited (“MM
Group”). MM Group holds a 100% direct interest in each of Maxtop Management Corp. (“Maxtop”), Risen Mark Enterprise Ltd. (“RM”) and Golden
Capital (Singapore) Limited (“GC”). Maxtop holds a 17.23% direct interest in ThaiBev; RM holds a 3.32% direct interest in ThaiBev; and GC holds a
0.06% direct interest in ThaiBev.
ThaiBev holds a 100% direct interest in International Beverage Holdings Limited, which in turn holds a 100% direct interest in InterBev Investment
Limited (“IBIL”). Each of Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi is therefore deemed to be interested in all of the
824,847,644 shares in the Company in which IBIL has an interest.
19_0111_FPL_FR2019_FS_v18.indd 176
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Directors’
Statement
Annual Report 2019 177
4.
DIRECTORS’ INTERESTS IN SHARES AND DEBENTURES (CONT’D)
(2) As at 1 October 2018, TCC Prosperity Limited (“TCCP”) holds an aggregate of S$250 million perpetual securities (the “Perpetual Securities”) issued
by Frasers Property Treasury Pte. Ltd. (“FPTPL”) on 24 September 2014. Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi own all
the shares in TCCP in equal shares, and therefore are deemed to be interested in the Perpetual Securities in which TCCP has an interest.
On 24 September 2019, FPTPL redeemed all of the outstanding Perpetual Securities, and the redeemed Perpetual Securities were cancelled
thereafter.
(3) As at 30 September 2019, TCCP holds an aggregate of S$300 million perpetual securities issued by FPTPL on 9 March 2015. Charoen Sirivadhanabhakdi
and Khunying Wanna Sirivadhanabhakdi own all the shares in TCCP in equal shares, and therefore are deemed to be interested in the perpetual
securities in which TCCP has an interest.
(4) As at 30 September 2019:
–
–
TCCA holds 858,080,062 shares in Fraser and Neave, Limited (“F&N”); and
IBIL holds 412,423,822 shares in F&N.
Each of Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi is therefore deemed to be interested in all of the shares in F&N in which
TCCA and IBIL have an interest.
(5) As at 30 September 2019, F&N holds 203,470,910 shares in Fraser & Neave Holdings Bhd.
Therefore, each of Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi has a deemed interest in all of the shares in Fraser & Neave
Holdings Bhd in which F&N has an interest.
(b)
(c)
(d)
There was no change in any of the abovementioned interests in the Company between the end of the financial year
and 21 October 2019, other than as disclosed in this statement.
By virtue of Section 4 of the Singapore Securities and Futures Act, Chapter 289, each of Charoen Sirivadhanabhakdi
and Khunying Wanna Sirivadhanabhakdi is deemed to have interests in the shares of the subsidiaries held by the
Company and in the shares of the subsidiaries held by F&N.
Except as disclosed in this statement, no director who held office at the end of the financial year had any interest in
shares in, or debentures of, the Company, or its related corporations, either at the beginning of the financial year,
or date of appointment if later, or at the end of the financial year.
5.
SHARE OPTIONS AND SHARE PLANS
(a)
Share Options
The Company does not have any share option scheme or plans in place, or such scheme of plans that entitled
holders to participate, by virtue of the scheme or plans, in any share issue of any other corporation.
(b)
Share Plans
On 25 October 2013, F&N, which was then the sole shareholder of the Company, approved the adoption of the
FPL Restricted Share Plan (“RSP”) and FPL Performance Share Plan (“PSP”, and together with the RSP the, “Share
Plans”).
The RSP and PSP are administered by the Remuneration Committee which, as at the date of this statement,
comprise the following three non-executive directors who do not participate in the Share Plans:
Mr Philip Eng Heng Nee (Chairman)
Mr Charles Mak Ming Ying
Mr Chan Heng Wing
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178 Frasers Property Limited
Directors’
Statement
5.
SHARE OPTIONS AND SHARE PLANS (CONT’D)
(c)
Share Grants under RSP and PSP
Under the RSP and PSP, the Company grants awards to eligible participants annually, referred to herein as “RSP
Awards” and “PSP Awards”, respectively. The grant (“Initial Award”) represents the right to receive fully paid shares,
their equivalent cash value or combinations thereof, free of charge, provided that certain prescribed performance
conditions are met. The Remuneration Committee that administers this scheme has absolute discretion in the
granting of awards under the RSP and PSP. The vesting of the RSP Initial Award and the PSP Initial Award are
conditional on the achievement of pre-determined targets set for a two-year performance period and a three-year
performance period, respectively. An achievement factor will be determined based on the level of achievement
of the pre-determined targets at the end of the respective performance period. The achievement factor will be
applied to the relevant Initial Award to determine the final number of shares to vest under the RSP Awards and PSP
Awards (as the case may be, the “Final Award”). The achievement factor ranges from 0% to 150% for RSP and from
0% to 200% for PSP.
At the end of the performance period and after the achievement factor is determined, 50% of the RSP Final Awards
will be released upon vesting and the balance will be released in equal number of shares over the subsequent
two years upon the fulfilment of service requirements. All PSP Final Awards will be released to the participants at
the end of the three-year performance period upon vesting. Pre-determined targets are set by the Remuneration
Committee at their absolute discretion for the performance conditions to be met over the performance period.
For the RSP, the targets set are the achievement of Attributable Profit Before Fair Value Change and Exceptional
Items (“APBFE”) and Return on Capital Employed (“ROCE”). For the PSP, the pre-set targets are based on Return
on Invested Capital (“ROIC”), Total Shareholders’ Return Relative to FTSE ST Real Estate Index and Absolute
Shareholders’ Return as a multiple of Cost of Equity.
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Annual Report 2019 179
Directors’
Statement
5.
SHARE OPTIONS AND SHARE PLANS (CONT’D)
(c)
Share Grants under RSP and PSP (cont’d)
No awards have been granted to controlling shareholders or their associates, or parent group directors and
employees under the RSP and PSP.
No awards have been granted to directors of the Company.
No employee other than Mr Lim Ee Seng, the former Group Chief Executive Officer who retired on 30 September
2016, and Mr Rod Fehring, Chief Executive Officer of Frasers Property Australia, have each received 5% or more of
the total number of shares available/delivered for the financial year ended 30 September 2019 and in the case of
Mr Rod Fehring, its equivalent in cash(1), pursuant to grants under the RSP and PSP. Details of conditional awards
available to Mr Lim and Mr Fehring under the RSP and PSP are as follows:
LIM EE SENG
Grant Date
Balance as at
01.10.2018 or
Grant Date if
later
Additional
Awards /
(Awards
Reduced) due
to Achievement
Factor
Vested
Balance as at
30.9.2019
RSP Awards
– Year 2
– Year 3
PSP Awards
– Year 3
19.08.2015
22.12.2015
Sub-Total
22.12.2015
Sub-Total
Total
181,050
468,650
649,700
293,216
293,216
942,916
–
–
–
(158,316)
(158,316)
(158,316)
(181,050)
(234,325)
(415,375)
(134,900)
(134,900)
(550,275)
–
234,325
234,325
–
–
234,325
ROD FEHRING
Grant Date
Balance as at
01.10.2018 or
Grant Date if
later
Additional
Awards /
(Awards
Reduced) due
to Achievement
Factor
Vested (1)
Balance as at
30.9.2019
RSP Awards
– Year 2
– Year 3
– Year 4
– Year 5
– Year 6
19.08.2015
22.12.2015
21.12.2016
22.12.2017
19.12.2018
Total
45,325
221,600
606,500
497,700
569,900
1,941,025
–
–
(109,200)
–
–
(109,200)
(45,325)
(110,800)
(248,650)
–
–
(404,775)
–
110,800
248,650
497,700
569,900
1,427,050
(1)
The Final RSP Awards vested and released to Mr Rod Fehring in accordance with the terms of the Share Plans were settled in cash.
19_0111_FPL_FR2019_FS_v18.indd 179
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180 Frasers Property Limited
Directors’
Statement
6.
AUDIT COMMITTEE
The Audit Committee carried out its functions in accordance with Section 201B(5) of the Companies Act of
Singapore (Chapter 50), which include, inter alia, the following:
(i)
reviewed the quarterly and full-year financial statements of the Company and of the Group for the financial
year and the independent auditors’ report for the full-year prior to approval by the Board;
(ii)
reviewed the internal and external audit plans to ensure the adequacy of the audit scope;
(iii)
(iv)
(v)
reviewed the adequacy and effectiveness of the Group and the Company’s internal controls, including
financial, operational and compliance controls and risk management;
reviewed with internal and external auditors, the respective audit reports and their recommendations, and
monitoring the timely and proper implementation of any required corrective or improvement measures;
reviewed the adequacy and effectiveness of the Group’s internal audit function, including the adequacy of
internal audit resources and its appropriate standing within the Group;
(vi) met with the external and internal auditors, in each case without the presence of the Company’s
management to review various audit matters as well as the assistance given by the Company's management
to the external and internal auditors;
(vii)
reviewed the cost effectiveness, the independence and the objectivity of external auditors, including the
nature and extent of non-audit services provided by the external auditors;
(viii)
recommended to the Board the appointment, re-appointment and removal of the external auditors, and
reviewed and approved the remuneration and terms of engagement of the external auditors; and
(ix)
reviewed interested person transactions in accordance with the requirements of the Singapore Exchange
Securities Trading Limited’s Listing Manual.
Further details regarding the Audit Committee are disclosed in the Corporate Governance Report.
Having reviewed the non-audit services provided by the external auditors to the Group, the Audit Committee is
satisfied that the nature and extent of such services would not affect the independence of external auditors, and
has recommended to the Board of Directors the re-appointment of KPMG LLP as auditors of the Company at the
forthcoming Annual General Meeting.
7.
AUDITORS
The auditors, KPMG LLP, have expressed their willingness to accept re-appointment as auditors.
On behalf of the Board
Charles Mak Ming Ying
Director
Panote Sirivadhanabhakdi
Director and Group Chief Executive Officer
Singapore
28 November 2019
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Annual Report 2019 181
Independent Auditors’
Report
MEMBERS OF THE COMPANY
FRASERS PROPERTY LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the accompanying consolidated financial statements of Frasers Property Limited (the “Company”) and
its subsidiaries (collectively the “Group”), which comprise the consolidated balance sheet of the Group and balance sheet
of the Company as at 30 September 2019, the consolidated profit statement, consolidated statement of comprehensive
income, consolidated statement of changes in equity, and consolidated cash flow statement of the Group, and statement
of changes in equity of the Company for the year then ended, and notes to the financial statements, including a summary
of significant accounting policies and other explanatory information, as set out on pages 187 to 349.
In our opinion, the accompanying consolidated financial statements of the Group and the balance sheet and statement of
changes in equity of the Company are properly drawn up in accordance with the provisions of the Companies Act, Chapter
50 (the “Act”) and the Singapore Financial Reporting Standards (International) (“SFRS(I)s”) to give a true and fair view of
the financial position of the Group and the Company as at 30 September 2019 and the financial performance, changes in
equity and cash flows of the Group and the changes in equity of the Company for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those
standards are further described in the ‘Auditors’ responsibilities for the audit of the financial statements’ section of our
report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority (“ACRA”)
Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”), together with
the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our
other ethical responsibilities in accordance with the ACRA Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Valuation of investment properties
(Refer to Note 11 to the financial statements)
Risk:
The Group owns a portfolio of investment properties (including investment properties under construction) comprising
serviced residences, commercial and industrial properties that are leased to third parties under operating leases, located
mainly in Australia, Germany, the Netherlands, Singapore, Thailand, Vietnam and the United Kingdom. Investment
properties represent the largest category of assets on the balance sheet, at $22.64 billion (2018: $20.76 billion; 1 October
2017: $15.91 billion) as at 30 September 2019.
These investment properties are stated at their fair values based on independent external valuations except for certain
overseas properties whereby valuations are performed internally. In addition, investment properties under construction
are stated at their fair values as determined by valuers which involve estimating the fair value of the completed investment
property and then deducting from that amount the estimated costs to complete the construction and a reasonable profit
margin on the construction and development.
The valuation process involves significant judgement in determining the appropriate valuation methodology to be used,
and in estimating the underlying assumptions to be applied. The valuations are sensitive to key assumptions applied
in deriving future cash flows, the capitalisation rates, discount rates and terminal yield rates; where a change in the
assumptions can have a significant impact to the valuation.
19_0111_FPL_FR2019_FS_v18.indd 181
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182 Frasers Property Limited
Independent Auditors’
Report
MEMBERS OF THE COMPANY
FRASERS PROPERTY LIMITED
Our response:
We evaluated the qualifications and competence of the valuers and held discussions with the valuers to understand their
valuation methods and assumptions and basis used, where appropriate.
We considered the valuation methodologies used against those applied by valuers for similar property types. We tested
the integrity of inputs of the projected cash flows used in the valuation to supporting leases and other documents. We
evaluated the appropriateness of the discount, capitalisation and terminal yield rates used in the valuation by comparing
them against historical rates and available industry data, taking into consideration comparability and market factors.
Where the rates were outside the expected range, we undertook further procedures to understand the effect of
additional factors and, when necessary, held further discussions with the valuers. In addition, for investment properties
under construction, we evaluated the estimated cost to complete by comparing the cost incurred to date to management
budgets and, where the works were contracted to third parties, agreed to the contracts. We have also tested significant
items of the cost components to source documents to ascertain the existence and accuracy of those cost components.
Our findings:
We found the valuers to be objective and competent. The valuers are members of generally-recognised professional
bodies for valuers. The valuation methodologies used are in line with generally accepted market practices and the key
assumptions used are within the range of market data. For investment properties under construction, the estimated cost
to complete were found to be supported.
Recoverability of intangible assets
(Refer to Note 16 to the financial statements)
Risk:
The Group has goodwill and other intangible assets relating to brands and favorable leases, management contracts and
others with an aggregate carrying value of $611.24 million (2018: $700.58 million; 1 October 2017: $763.14 million) as
at 30 September 2019. These assets are impaired when their individual carrying value or the carrying value of the cash
generating unit (“CGU”) of which the goodwill or intangible asset is allocated to, exceeds their recoverable amount. The
recoverable amount is the higher of their fair value less costs of disposal and its value in use. Estimating the recoverable
amount involves significant judgement in determining an appropriate model and the underlying assumptions to be
applied; coupled with the inherent estimation uncertainties that arise when estimating and discounting future cash flows.
The recoverable amount is sensitive to inputs and assumptions underlying the models used. Some of the key inputs and
assumptions relate to expectations of future cash flows, growth rates used for extrapolation purposes and discount rates.
Our response:
We evaluated the Group’s methodology and identification of CGU and assessed indicators of impairment for intangible
assets where appropriate.
For goodwill, intangible assets with infinite useful life and intangible assets with indicators of impairment, we evaluated
the cash flows used in the model against the understanding we obtained about the business through our audit and assess
if these cash flows were reasonable. We challenged the appropriateness of key assumptions used by the Group in its
impairment testing comprising the discount rate and growth rate by comparing these to externally available market data
for reasonableness. We also assessed whether or not the assumptions showed any evidence of management bias with
a particular focus on the risk that the forecasted cash flows may not support the carrying value of the intangible assets.
Our findings:
The methodology and model used by the Group is supported by generally accepted market practices and we found that
reasonable assumptions and resulting estimates were made in the determination of recoverable amounts.
19_0111_FPL_FR2019_FS_v18.indd 182
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Annual Report 2019 183
Independent Auditors’
Report
MEMBERS OF THE COMPANY
FRASERS PROPERTY LIMITED
Valuation of development properties held for sale
(Refer to Note 19 to the financial statements)
Risk:
The Group has significant residential, industrial and commercial properties held for sale located primarily in Australia,
China, Singapore, Thailand and the United Kingdom. These properties have a carrying value of $4.97 billion (2018: $3.85
billion; 1 October 2017: $3.35 billion) as at 30 September 2019 and are stated at the lower of their cost and their net
realisable values. In arriving at estimates of net realisable values, the Group considered comparable properties and
the recent selling prices less the estimated costs of completion and the estimated costs necessary to make the sale.
The determination of the estimated net realisable value of these properties is critically dependent upon the Group’s
expectations of future selling prices.
Our response:
We compared the Group’s forecast selling prices to recently transacted prices and prices of comparable properties
located in the same vicinity as the development or completed project. We focused our work on projects with slower-
than-expected sales or with low or negative margins. For projects with units which are expected to sell below costs, we
checked the computations of the foreseeable losses.
Our findings:
In estimating future selling price for the purpose of management’s assessment, the Group takes into account
macroeconomic and real estate price trend information and planned capital management considerations. Management
has applied its knowledge of the business in its regular review of these estimates. We found that reasonable estimates
were made in the determination of net realizable values and allowance for foreseeable losses.
Accounting for business acquisitions
(Refer to Note 37 to the financial statements)
Risk:
The Group makes acquisitions as part of its business strategy. For the financial year ended 30 September 2019, the
significant acquisitions were the acquisition of PGIM Real Estate AsiaRetail Fund Limited (“PGIM ARF”) for an aggregate
consideration of $1,350.4 million and the acquisition of Golden Land Property Development Public Company Limited
(“GOLD”) for an aggregate consideration of $488.2 million.
Such transactions can be complex and judgement is involved in determining whether each transaction is a business
combination or an acquisition of an asset, with different accounting treatment applicable. In accounting for a business
combination, judgements are applied and there exist inherent uncertainties in estimating the fair value of the identified
assets and liabilities that make up the acquisition; and allocating the overall purchase price to those identified assets and
liabilities, with any excess or shortfall being recognised as goodwill on the balance sheet or a bargain purchase in the
profit statement respectively (the “Purchase Price Allocation”). In relation to the acquisitions, independent professional
firms were engaged to assist the Group in arriving at its purchase price allocation assessments.
Our response:
We have assessed the accounting of the acquisitions by examining legal and contractual documents to determine whether
these acquisitions are business combinations or the acquisition of assets.
We read the purchase price allocation reports and assessed the allocation of the purchase price to significant identified
assets and liabilities acquired. We compared the methodologies and key assumptions used in deriving the significant
allocated values to generally accepted market practices and market data.
19_0111_FPL_FR2019_FS_v18.indd 183
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184 Frasers Property Limited
Independent Auditors’
Report
MEMBERS OF THE COMPANY
FRASERS PROPERTY LIMITED
Our findings:
The judgements applied by the Group in determining whether the significant acquisitions are business combinations
or acquisitions of assets were balanced. The methods and assumptions used in estimating the fair values of significant
identified assets and liabilities and the resulting allocation in the purchase price were appropriate.
Other information
Management is responsible for the other information. The other information comprises: Corporate Narrative, FPL
Group Strategy, Our Businesses, Our Multi-National Presence, Our Milestones, Group Structure, Financial Highlights,
Board of Directors, Group Management, Chairman’s Statement, In Conversation with the Group CEO, Business Review,
Investor Relations, Treasury Highlights, Sustainability Report, Awards and Accolades, Enterprise-wide Risk Management,
Corporate Governance Report, Directors’ Statement, Particulars of Group Properties, Interested Person Transactions, FPL
Fact Sheet and Corporate Information but does not include the financial statements and our auditors’ report thereon,
which we obtained prior to the date of this auditors’ report, and Shareholding Statistics (the “Reports”), which is expected
to be made available to us after that date.
Our opinion on the financial statements does not cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’
report, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
When we read the other information made available to us after the date of this report, if we conclude that there is a
material misstatement therein, we are required to communicate the matter to the directors of the Company and take
appropriate actions in accordance with SSAs.
Responsibilities of management and directors for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with
the provisions of the Act and SFRS(I)s, and for devising and maintaining a system of internal accounting controls sufficient
to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and
transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair
financial statements and to maintain accountability of assets.
In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to
do so.
The directors’ responsibilities include overseeing the Group’s financial reporting process.
19_0111_FPL_FR2019_FS_v18.indd 184
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Independent Auditors’
Report
MEMBERS OF THE COMPANY
FRASERS PROPERTY LIMITED
Annual Report 2019 185
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
•
•
•
•
•
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal controls.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease
to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible for
the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the
audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters
in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
19_0111_FPL_FR2019_FS_v18.indd 185
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186 Frasers Property Limited
Independent Auditors’
Report
MEMBERS OF THE COMPANY
FRASERS PROPERTY LIMITED
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiary
corporations incorporated in Singapore of which we are the auditors have been properly kept in accordance with the
provisions of the Act.
The engagement partner on the audit resulting in this independent auditors’ report is Ronald Tay Ser Teck.
KPMG LLP
Public Accountants and
Chartered Accountants
Singapore
28 November 2019
19_0111_FPL_FR2019_FS_v18.indd 186
11/12/19 5:42 PM
Annual Report 2019 187
2019
Note
$'000
Group
2018
(Restated)
$'000
3
4a
4b
4c
4
14
3,791,943
(2,345,194)
4,320,872
(2,844,635)
1,446,749
6,501
(447,678)
1,476,237
(4,331)
(377,833)
1,005,572
287,055
1,094,073
239,152
1,292,627
1,333,225
5
6
72,340
(441,386)
36,205
(335,881)
(369,046)
(299,676)
11
7
8
9
923,581
544,357
1,033,549
651,991
1,467,938
(114,811)
1,685,540
(158,523)
1,353,127
(286,135)
1,527,017
(341,057)
1,066,992
1,185,960
350,075
321,641
(111,417)
560,299
506,693
482,785
402,879
(136,036)
749,628
436,332
1,066,992
1,185,960
15.9¢
15.8¢
23.0¢
22.8¢
Consolidated Profit
Statement
FOR THE YEAR ENDED 30 SEPTEMBER 2019
REVENUE
Cost of sales
GROSS PROFIT
Other income/(losses)
Administrative expenses
TRADING PROFIT
Share of results of joint ventures and associates, net of tax
PROFIT BEFORE INTEREST, FAIR VALUE CHANGE,
TAXATION AND EXCEPTIONAL ITEMS
Interest income
Interest expense
NET INTEREST EXPENSE
PROFIT BEFORE FAIR VALUE CHANGE, TAXATION AND
EXCEPTIONAL ITEMS
Fair value change on investment properties
PROFIT BEFORE TAXATION AND EXCEPTIONAL ITEMS
Exceptional items
PROFIT BEFORE TAXATION
Taxation
PROFIT FOR THE YEAR
ATTRIBUTABLE PROFIT:
– before fair value change and exceptional items
– fair value change
– exceptional items
Non-controlling interests
PROFIT FOR THE YEAR
EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share
The accompanying notes form an integral part of the financial statements.
19_0111_FPL_FR2019_FS_v18.indd 187
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188 Frasers Property Limited
Consolidated Statement of
Comprehensive Income
FOR THE YEAR ENDED 30 SEPTEMBER 2019
PROFIT FOR THE YEAR
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit statement:
Group
2019
$'000
2018
(Restated)
$'000
1,066,992
1,185,960
Net fair value change of cash flow hedges
Foreign currency translation
Share of other comprehensive income of joint ventures and associates
(113,037)
(293,256)
(3,779)
27,102
(401,483)
1,372
Total other comprehensive income for the year, net of tax
(410,072)
(373,009)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
656,920
812,951
ATTRIBUTABLE TO:
– shareholders of the Company
– holders of perpetual securities
– non-controlling interests (Note 13(b))
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
163,767
98,560
394,593
432,226
82,670
298,055
656,920
812,951
The accompanying notes form an integral part of the financial statements.
19_0111_FPL_FR2019_FS_v18.indd 188
11/12/19 5:42 PM
Balance
Sheets
AS AT 30 SEPTEMBER 2019
NON-CURRENT ASSETS
Investment properties
Property, plant and equipment
Investments in:
– Subsidiaries
– Joint ventures
– Associates
Other non-current assets
Intangible assets
Other receivables
Deferred tax assets
Derivative financial instruments
CURRENT ASSETS
Properties held for sale
Contract assets
Other current assets
Trade and other receivables
Derivative financial instruments
Bank deposits
Cash and cash equivalents
Assets held for sale
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Contract liabilities
Derivative financial instruments
Provision for taxation
Loans and borrowings
Liabilities held for sale
NET CURRENT ASSETS
NON-CURRENT LIABILITIES
Other payables
Derivative financial instruments
Deferred tax liabilities
Loans and borrowings
NET ASSETS
SHARE CAPITAL AND RESERVES
Share capital
Retained earnings
Other reserves
Equity attributable to Owners
of the Company
NON-CONTROLLING INTERESTS
– PERPETUAL SECURITIES
NON-CONTROLLING INTERESTS
– OTHERS
TOTAL EQUITY
Note
11
12
13
14
14
15
16
17
18
21
19
20
15
17
21
22
22
23
24
20
21
25
23
24
21
18
25
26
27
29
Annual Report 2019 189
Group
Company
1 October 30 September 30 September
2018
2019
1 October
2017
$'000
$'000
$'000
30 September 30 September
2018
(Restated)
$'000
$'000
2019
2017
(Restated)
$'000
22,639,296
2,149,464
20,756,479
2,116,054
15,914,282
2,240,724
2,150
24
1,600
–
1,500
1
–
940,656
1,075,915
97,913
611,241
490,470
62,864
82,631
28,150,450
–
226,424
969,824
13,525
700,578
385,824
60,803
29,830
25,259,341
–
271,063
1,166,096
6,125
763,140
238,692
34,842
4,279
20,639,243
1,182,948
500
–
2,148
–
3,783,039
–
129
4,970,938
4,968,427
199,420
75,168
528,816
30,561
467,023
3,112,956
100,112
9,482,483
3,853,825
367,963
76,233
381,874
10,727
448,743
2,150,002
13,357
7,302,724
3,352,719
128,095
169,303
455,652
604
272,205
2,149,214
–
6,527,792
–
–
204
283,989
13,186
–
11,454
–
308,833
1,183,048
500
–
2,148
–
3,812,370
–
8,509
5,008,175
–
–
721
402,292
1,431
–
8,514
–
412,958
1,799,896
500
–
2,148
–
3,175,075
–
73
4,979,193
–
–
153
219,583
90
–
45,432
–
265,258
37,632,933
32,562,065
27,167,035
5,279,771
5,421,133
5,244,451
1,481,177
328,867
6,480
497,154
3,490,572
1,944
5,806,194
1,512,537
239,241
12,194
385,273
2,642,943
–
4,792,188
1,332,805
150,724
15,051
291,969
1,591,718
–
3,382,267
249,006
–
2,278
3,228
–
–
254,512
342,688
–
6,938
11,830
–
–
361,456
205,498
–
2,090
11,405
–
–
218,993
3,676,289
2,510,536
3,145,525
54,321
51,502
46,265
31,826,739
27,769,877
23,784,768
5,025,259
5,059,677
5,025,458
1,099,054
137,017
594,795
13,905,327
15,736,193
154,553
35,943
536,389
12,302,757
13,029,642
130,910
87,703
337,914
10,056,126
10,612,653
138
5,971
–
–
6,109
8,754
7,384
–
–
16,138
985
36,726
–
–
37,711
16,090,546
14,740,235
13,172,115
5,019,150
5,043,539
4,987,747
1,795,241
6,014,963
(405,848)
1,784,732
5,729,902
(45,597)
1,774,771
5,314,204
183,455
1,795,241
3,095,532
128,377
1,784,732
3,056,544
202,263
1,774,771
3,014,352
198,624
7,404,356
7,469,037
7,272,430
5,019,150
5,043,539
4,987,747
2,038,840
9,443,196
2,037,819
9,506,856
1,698,093
8,970,523
–
5,019,150
–
5,043,539
–
4,987,747
6,647,350
16,090,546
5,233,379
14,740,235
4,201,592
13,172,115
–
5,019,150
–
5,043,539
–
4,987,747
The accompanying notes form an integral part of the financial statements.
19_0111_FPL_FR2019_FS_v18.indd 189
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190 Frasers Property Limited
Statements of
Changes in Equity
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Share
Capital
(Note 26)
$'000
Retained
Earnings
$'000
Other
Reserves
(Note 27)
$'000
Equity
Attributable
to Owners of
the Company
$'000
Non-
Controlling
Interests –
Perpetual
Securities
(Note 29)
$'000
Non-
Controlling
Interests –
Others
$'000
Total
$'000
Total
Equity
$'000
Group
2019
Closing balance at 30 September 2018,
as previously reported
1,784,732
6,015,778
(438,459)
7,362,051
2,037,819
9,399,870
5,228,204 14,628,074
Effects of changes in accounting policies
(Note 40)
Closing balance at 30 September 2018,
–
(285,876)
392,862
106,986
–
106,986
5,175
112,161
as restated
1,784,732
5,729,902
(45,597)
7,469,037
2,037,819
9,506,856
5,233,379 14,740,235
Effects of adopting SFRS(I) 9 (Note 40)
–
(553)
(19)
(572)
–
(572)
(1)
(573)
Opening balance at 1 October 2018,
as restated
Profit for the year
Other comprehensive income
Net fair value change of cash flow hedges
Foreign currency translation
Share of other comprehensive income
of joint ventures and associates
Other comprehensive income
for the year
Total comprehensive income
for the year
Contributions by and distributions
to owners
Ordinary shares issued (Note 26)
Employee share-based expense
Dividend paid (Note 30)
Dividend proposed (Note 30)
Transfer to other reserves
Total contributions by and
distributions to owners
Changes in ownership interests
in subsidiaries
Units/shares issued to non-controlling interests
Acquisitions of subsidiaries with
non-controlling interests
Change in interests in subsidiaries
without change in control
Issuance costs incurred by subsidiaries
Total changes in ownership interests
in subsidiaries
Total transactions with owners in their
capacity as owners
Contributions by and distributions
to perpetual securities holders
Issue of perpetual securities, net of costs
Redemption of perpetual securities,
net of costs
Distributions to perpetual securities holders
Total contributions by and distributions
to perpetual securities holders
1,784,732
5,729,349
(45,616)
7,468,465
2,037,819
9,506,284
5,233,378 14,739,662
–
–
–
–
–
–
465,093
–
465,093
98,560
563,653
503,339
1,066,992
–
–
–
–
(100,407)
(197,329)
(100,407)
(197,329)
(3,590)
(3,590)
(301,326)
(301,326)
–
–
–
–
(100,407)
(197,329)
(12,630)
(95,927)
(113,037)
(293,256)
(3,590)
(189)
(3,779)
(301,326)
(108,746)
(410,072)
465,093
(301,326)
163,767
98,560
262,327
394,593
656,920
10,509
–
–
–
–
–
–
(70,531)
(105,102)
(13,089)
(10,509)
14,578
(180,545)
105,102
13,089
–
14,578
(251,076)
–
–
10,509
(188,722)
(58,285)
(236,498)
–
–
–
–
–
–
–
–
–
–
–
12,481
(3,238)
(621)
–
11,860
(3,238)
9,243
(621)
8,622
10,509
(179,479)
(58,906)
(227,876)
–
–
–
–
–
–
–
–
–
–
–
–
–
14,578
(251,076)
–
–
–
–
(309,182)
–
–
–
14,578
(560,258)
–
–
(236,498)
(309,182)
(545,680)
–
–
830,587
830,587
520,653
520,653
11,860
(3,238)
(14,998)
(7,681)
(3,138)
(10,919)
8,622
1,328,561
1,337,183
(227,876) 1,019,379
791,503
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
598,156
598,156
(597,135)
(98,560)
(597,135)
(98,560)
(97,539)
(97,539)
–
–
–
–
598,156
(597,135)
(98,560)
(97,539)
Closing balance at 30 September 2019
1,795,241
6,014,963
(405,848)
7,404,356
2,038,840
9,443,196
6,647,350 16,090,546
The accompanying notes form an integral part of the financial statements.
19_0111_FPL_FR2019_FS_v18.indd 190
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Statements of
Changes in Equity
FOR THE YEAR ENDED 30 SEPTEMBER 2019 (CONT’D)
Annual Report 2019 191
Share
Capital
(Note 26)
$'000
Retained
Earnings
$'000
Other
Reserves
(Note 27)
$'000
Equity
Attributable
to Owners of
the Company
$'000
Non-
Controlling
Interests –
Perpetual
Securities
(Note 29)
$'000
Non-
Controlling
Interests –
Others
$'000
Total
$'000
Total
Equity
$'000
1,774,771
5,590,746
(210,839)
7,154,678
1,698,093
8,852,771
4,196,428 13,049,199
–
(276,542)
394,294
117,752
–
117,752
5,164
122,916
1,774,771
5,314,204
183,455
7,272,430
1,698,093
8,970,523
4,201,592 13,172,115
–
–
–
–
–
–
670,357
–
670,357
82,670
753,027
432,933
1,185,960
–
–
–
–
24,811
(264,314)
24,811
(264,314)
1,372
1,372
(238,131)
(238,131)
–
–
–
–
24,811
(264,314)
2,291
(137,169)
27,102
(401,483)
1,372
–
1,372
(238,131)
(134,878)
(373,009)
670,357
(238,131)
432,226
82,670
514,896
298,055
812,951
9,961
–
–
–
–
–
–
(70,305)
(180,545)
(10,280)
(9,961)
13,185
(180,130)
180,545
10,280
–
13,185
(250,435)
–
–
9,961
(261,130)
13,919
(237,250)
–
–
–
–
–
–
–
–
–
–
–
7,963
(1,492)
(4,840)
–
3,123
(1,492)
6,471
(4,840)
1,631
9,961
(254,659)
9,079
(235,619)
–
–
–
–
–
–
–
–
–
–
–
–
–
13,185
(250,435)
–
–
–
–
(270,218)
–
–
–
13,185
(520,653)
–
–
(237,250)
(270,218)
(507,468)
–
–
489,522
489,522
679,397
679,397
3,123
(1,492)
(159,592)
(5,377)
(156,469)
(6,869)
1,631
1,003,950
1,005,581
(235,619)
733,732
498,113
–
–
–
–
–
–
–
–
–
–
–
–
339,726
(82,670)
339,726
(82,670)
257,056
257,056
–
–
–
339,726
(82,670)
257,056
Group
2018
Opening balance at 1 October 2017,
as previously reported
Effects of changes in accounting
policies (Note 40)
Opening balance at 1 October 2017,
as restated
Profit for the year
Other comprehensive income
Net fair value change of cash flow hedges
Foreign currency translation
Share of other comprehensive income
of joint ventures and associates
Other comprehensive income
for the year
Total comprehensive income
for the year
Contributions by and distributions
to owners
Ordinary shares issued (Note 26)
Employee share-based expense
Dividend paid (Note 30)
Dividend proposed (Note 30)
Transfer to other reserves
Total contributions by and
distributions to owners
Changes in ownership interests
in subsidiaries
Units issued to non-controlling interests
Acquisitions of subsidiaries with
non-controlling interests
Change in interests in subsidiaries
without change in control
Issuance costs incurred by subsidiaries
Total changes in ownership interests
in subsidiaries
Total transactions with owners in their
capacity as owners
Contributions by and distributions
to perpetual securities holders
Issue of perpetual securities, net of costs
Distributions to perpetual securities holders
Total contributions by and distributions
to perpetual securities holders
Closing balance at 30 September 2018
1,784,732
5,729,902
(45,597)
7,469,037
2,037,819
9,506,856
5,233,379 14,740,235
The accompanying notes form an integral part of the financial statements.
19_0111_FPL_FR2019_FS_v18.indd 191
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192 Frasers Property Limited
Statements of
Changes in Equity
FOR THE YEAR ENDED 30 SEPTEMBER 2019 (CONT’D)
Share
Capital
(Note 26)
$'000
Retained
Earnings
$'000
Other
Reserves
(Note 27)
$'000
Share-based
Compensation
Reserve
$'000
Dividend
Reserve
$'000
Total
Equity
$'000
Company
2019
Opening balance at 1 October 2018
1,784,732
3,056,544
202,263
21,718
180,545
5,043,539
Profit for the year
Total comprehensive income
for the year
Contributions by and distributions
to owners
Ordinary shares issued (Note 26)
Employee share-based expense
Dividend paid (Note 30)
Dividend proposed (Note 30)
Total contributions by and
distributions to owners
Closing balance
–
–
214,621
214,621
–
–
–
–
–
–
214,621
214,621
10,509
–
–
–
–
–
(70,531)
(105,102)
(10,509)
12,066
(180,545)
105,102
(10,509)
12,066
–
–
–
–
(180,545)
105,102
–
12,066
(251,076)
–
10,509
(175,633)
(73,886)
1,557
(75,443)
(239,010)
at 30 September 2019
1,795,241
3,095,532
128,377
23,275
105,102
5,019,150
The accompanying notes form an integral part of the financial statements.
19_0111_FPL_FR2019_FS_v18.indd 192
11/12/19 5:42 PM
Statements of
Changes in Equity
FOR THE YEAR ENDED 30 SEPTEMBER 2019 (CONT’D)
Annual Report 2019 193
Share
Capital
(Note 26)
$'000
Retained
Earnings
$'000
Other
Reserves
(Note 27)
$'000
Share-based
Compensation
Reserve
$'000
Dividend
Reserve
$'000
Total
Equity
$'000
Company
2018
Opening balance at 1 October 2017
1,774,771
3,014,352
198,624
18,494
180,130 4,987,747
Profit for the year
Total comprehensive income
for the year
Contributions by and distributions
to owners
Ordinary shares issued (Note 26)
Employee share-based expense
Dividend paid (Note 30)
Dividend proposed (Note 30)
Total contributions by and
distributions to owners
Closing balance
–
–
293,042
293,042
–
–
–
–
–
–
293,042
293,042
9,961
–
–
–
–
–
(70,305)
(180,545)
(9,961)
13,185
(180,130)
180,545
(9,961)
13,185
–
–
–
–
(180,130)
180,545
–
13,185
(250,435)
–
9,961
(250,850)
3,639
3,224
415
(237,250)
at 30 September 2018
1,784,732
3,056,544
202,263
21,718
180,545 5,043,539
The accompanying notes form an integral part of the financial statements.
19_0111_FPL_FR2019_FS_v18.indd 193
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194 Frasers Property Limited
Consolidated
Cash Flow Statement
FOR THE YEAR ENDED 30 SEPTEMBER 2019
CASH FLOW FROM OPERATING ACTIVITIES
Profit after taxation
Adjustments for:
Depreciation of property, plant and equipment
Fair value change on investment properties
Share of results of joint ventures and associates, net of tax
Amortisation of intangible assets
Impairment of intangible assets
Impairment of property, plant and equipment
Loss/(gain) on disposal of property, plant and equipment
Allowance for/(write-back of allowance) for doubtful trade receivables
Bad debts written off
Write-down to net realisable value of properties held for sale
Employee share-based expense
Net (gain)/loss on acquisitions and disposals of subsidiaries,
joint ventures and associates
Net fair value change on derivative financial instruments
Interest income
Interest expense
Tax expense
Exchange difference
Operating profit before working capital changes
Change in trade and other receivables
Change in contract costs
Change in contract assets
Change in contract liabilities
Change in trade and other payables
Change in properties held for sale
Change in inventory
Cash generated from operations
Income taxes paid
Net cash generated from operating activities
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of/development expenditure on investment properties
Purchase of property, plant and equipment
Proceeds from disposal of investment properties
Proceeds from disposal of property, plant and equipment
Net investments in/loans to joint ventures and associates
Repayments of loans from joint ventures and associates
Dividends from joint ventures and associates
Settlement of hedging instruments
Purchase of financial assets
Purchase of intangible assets
Interest received
Acquisitions of subsidiaries, net of cash acquired
Acquisitions of non-controlling interests
Disposals of subsidiaries, net of cash disposed of
Proceeds from disposal of assets held for sale
Placement of structured deposits
Net cash used in investing activities
Group
2019
$'000
2018
(Restated)
$'000
Note
1,066,992
1,185,960
12
11
14
16
16
12
4b
4a
4a
4c
7
4b
5
6
8
12
11
16
57,428
(544,357)
(287,055)
3,673
64,660
37,230
120
1,404
343
93,952
19,762
(723)
(29,980)
(72,340)
441,386
286,135
6,489
1,145,119
(138,092)
1,059
168,543
84,896
271,486
28,853
35
1,561,899
(190,411)
1,371,488
(446,597)
(35,239)
660,394
296
(1,776,888)
6,244
83,614
(49,686)
(82,154)
(6,431)
70,240
(239,595)
(3,138)
37,607
66,494
(30,469)
(1,745,308)
55,766
(651,991)
(239,152)
2,961
156,323
–
(83)
(97)
34
30,685
18,880
2,436
(36,787)
(36,205)
335,881
341,057
(114,565)
1,051,103
(61,610)
20,986
(239,868)
88,517
148,767
(341,156)
739
667,478
(153,383)
514,095
(1,334,635)
(83,742)
476,512
774
(55,745)
39,000
197,312
(34,697)
(6,302)
(5,696)
31,576
(893,907)
(156,899)
–
–
(183,345)
(2,009,794)
19_0111_FPL_FR2019_FS_v18.indd 194
11/12/19 5:42 PM
Consolidated
Cash Flow Statement
FOR THE YEAR ENDED 30 SEPTEMBER 2019 (CONT’D)
CASH FLOW FROM FINANCING ACTIVITIES
Contributions from non-controlling interests of subsidiaries without
change in control
Dividends paid to non-controlling interests
Dividends paid to shareholders
Proceeds from bank borrowings
Repayments of bank borrowings
Proceeds from issue of bonds/debentures, net of costs
Proceeds from issue of perpetual securities, net of costs
Redemption of perpetual securities, net of costs
Distributions to perpetual securities holders
Interest paid
Issuance costs
Repayment of amounts due to non-controlling interests
Net cash generated from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effects of exchange rate on opening cash
Cash and cash equivalents at end of year
Cash and cash equivalents at end of year:
Fixed deposits, current
Cash and bank balances
Bank overdraft, unsecured
Cash and cash equivalents at end of year
Annual Report 2019 195
Group
2019
$'000
2018
(Restated)
$'000
Note
830,587
(309,182)
(251,076)
6,750,645
(5,961,001)
852,108
598,156
(597,135)
(98,560)
(425,507)
(10,919)
–
1,378,116
1,004,296
2,146,514
(46,705)
3,104,105
489,522
(270,218)
(250,435)
4,034,230
(2,899,024)
523,240
339,726
–
(82,670)
(328,741)
(6,869)
(9,214)
1,539,547
43,848
2,147,684
(44,759)
2,146,773
22
25
937,694
2,175,262
3,112,956
(8,851)
3,104,105
887,559
1,262,443
2,150,002
(3,229)
2,146,773
The accompanying notes form an integral part of the financial statements.
19_0111_FPL_FR2019_FS_v18.indd 195
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196 Frasers Property Limited
Consolidated
Cash Flow Statement
FOR THE YEAR ENDED 30 SEPTEMBER 2019 (CONT’D)
Analysis of Acquisitions of Subsidiaries
Net assets acquired:
Investment properties
Property, plant and equipment
Investments in joint ventures and associates
Intangible assets
Properties held for sale
Non-current assets
Derivative financial assets
Inventories
Trade and other receivables
Assets held for sale
Trade and other payables
Contract liabilities
Provision for tax
Loans and borrowings
Liabilities held for sale
Deferred tax liabilities
Cash and cash equivalents
Fair value of net assets
Less: Non-controlling interests acquired
Less: Non-controlling interests on consolidation
Less: Amounts previously accounted for as investment in an associate
Gain on acquisitions of subsidiaries
Loss on disposal of an associate
Goodwill on acquisition of subsidiaries
Exchange difference
Consideration paid in cash
Cash and cash equivalents of subsidiaries acquired
Net cash outflow on acquisitions of subsidiaries, net of cash and cash
Group
2019
$'000
2018
(Restated)
$'000
Note
3,730,342
153,296
228,563
2,283
1,308,321
–
509
54
96,793
279,882
(921,965)
(4,730)
(17,367)
(2,143,664)
(48,422)
(70,949)
390,563
2,983,509
637
(521,290)
(1,803,293)
(82,520)
55,033
–
(1,918)
630,158
(390,563)
3,714,936
5,384
261,330
68,735
1,723
11
–
–
49,114
–
(85,887)
–
(683)
(1,801,401)
–
(108,954)
373,627
2,477,935
(679,397)
–
(587,961)
(17,947)
20,383
54,521
–
1,267,534
(373,627)
equivalents acquired
37
239,595
893,907
Analysis of Disposals of Subsidiaries
Net assets of subsidiaries disposed of:
Investment properties
Property, plant and equipment
Intangible assets
Trade and other receivables
Trade and other payables
Derivative financial liabilities
Loans and borrowings
Deferred tax liabilities
Cash and cash equivalents
Consideration received in cash
Less: Equity interest retained as a joint venture
Gain on disposal of subsidiaries
Less: Cash of subsidiaries disposed of
Net cash inflow on disposals of subsidiaries, net of cash disposed of
The accompanying notes form an integral part of the financial statements.
2,010,007
1,205
140
7,324
(343,159)
(23,840)
(1,192,434)
4,754
7,438
471,435
(434,384)
7,994
(7,438)
37,607
–
–
–
–
–
–
–
–
–
–
–
–
–
–
19_0111_FPL_FR2019_FS_v18.indd 196
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Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 197
These notes form an integral part of the financial statements.
The financial statements for the financial year ended 30 September 2019 were authorised for issue in accordance with a
resolution of the Directors on 28 November 2019.
1.
CORPORATE INFORMATION
Frasers Property Limited (the “Company”) is a limited liability company incorporated and domiciled in Singapore.
On 9 January 2014, the Company commenced trading on the Main Board of the Singapore Exchange Securities
Trading Limited (“SGX-ST”). TCC Assets Limited, incorporated in the British Virgin Islands, is the immediate and
ultimate holding company.
The registered office and principal place of business of the Company is located at 438 Alexandra Road, #21-00
Alexandra Point, Singapore 119958.
The principal activity of the Company is investment holding.
The principal activities of the significant subsidiaries, joint arrangements and associates are set out in Note 39.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1
Basis of Preparation
The complete set of consolidated financial statements of the Company and its subsidiaries (collectively, the
“Group”) and the Group’s interest in equity-accounted investees as at and for the year ended 30 September 2019
are prepared in accordance with Singapore Financial Reporting Standards (International) (“SFRS(I)s”). SFRS(I)s are
issued by the Accounting Standards Council and comprise standards and interpretations that are equivalent to
International Financial Reporting Standards as issued by the International Accounting Standard Board (“IASB”).
All references to SFRS(I)s are subsequently referred to as SFRS(I) in these financial statements unless otherwise
stated. These are the Group’s first financial statements prepared in accordance with SFRS(I) and SFRS(I) 1 First-time
Adoption of Singapore Financial Reporting Standards (International) has been applied.
In the previous financial years, the financial statements were prepared in accordance with Financial Reporting
Standards in Singapore (“FRS”). An explanation of how the transition to SFRS(I) and application of SFRS(I) 9 and
SFRS(I) 15 have affected the reported financial position, financial performance and cash flows is provided in
Note 40.
The consolidated financial statements of the Group and the balance sheet and statement of changes in equity of
the Company are prepared on the historical cost basis except as disclosed in the accounting policies below.
The financial statements are presented in Singapore Dollars (“$” or “S$”). All financial information presented in
Singapore Dollars has been rounded to the nearest thousand, unless otherwise stated.
The accounting policies set out below have been applied consistently to all periods presented in these financial
statements and in preparing the opening SFRS(I) balance sheets at 1 October 2017 for the purposes of the transition
to SFRS(I), unless otherwise indicated.
The accounting policies have been applied consistently by Group entities.
19_0111_FPL_FR2019_FS_v18.indd 197
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198 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.2
Significant Accounting Judgements and Estimates
The preparation of the Group’s consolidated financial statements in conformity with SFRS(I) requires management
to make judgements, estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities at the reporting
date. The estimates and associated assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances, the results of which form the basis of making judgements
about carrying values of assets and liabilities, and which are not readily apparent from other sources.
Estimates and underlying assumptions are revised on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised, if the revisions affect only that period, or in the period
of the revisions and future periods, if the revisions affect both current and future periods.
(a)
Key Sources of Estimation Uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
(i)
Revenue Recognition and Estimation of Total Development Costs
For Singapore property development projects under progressive payment scheme, the Group
recognises revenue and cost of sales from development properties held for sale based on the
percentage of completion method. The stage of completion is measured in accordance with the
accounting policy stated in Note 2.18. Estimates are required in determining the total estimated
development costs which will affect the stage of completion. In making these assumptions, the Group
relies on references to information such as current offers and/or recent contracts with contractors
and suppliers, estimation of construction and material costs based on historical experience, and the
work of professional surveyors and architects. Revenue from development properties held for sale
is disclosed in Note 3.
(ii)
Valuation of Completed Investment Properties
The Group’s completed investment properties are stated at their fair values, which are determined
annually. The fair values are based on independent professional valuations conducted annually,
except for certain overseas properties whereby valuations are performed internally every year and
at least once every two years; independent professional valuations are obtained for cross-checking
purposes. The fair value of completed investment properties is determined using a combination of
the market comparison method, discounted cash flow method and capitalisation method. These
estimated market values may differ from the prices at which the Group’s completed investment
properties could be sold at a particular time, since actual selling prices are negotiated between willing
buyers and sellers. Also, certain estimates require an assessment of factors not within the directors’
control, such as overall market conditions. As a result, actual results of operations and realisation of
these completed investment properties could differ from the estimates set forth in these financial
statements, and the difference could be significant. The carrying amount of completed investment
properties is disclosed in Note 11.
The Group’s valuation policies and procedures are disclosed in Notes 11 and 33.
19_0111_FPL_FR2019_FS_v18.indd 198
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Annual Report 2019 199
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.2
Significant Accounting Judgements and Estimates (cont’d)
(a)
Key Sources of Estimation Uncertainty (cont’d)
(iii)
Valuation of Investment Properties under Construction (“IPUC”)
IPUC are measured at fair value if they can be reliably determined. If fair values cannot be reliably
determined, then IPUC are recorded at cost. The fair values of IPUC are determined using a combination
of market comparison method, discounted cash flow method, capitalisation method and residual
land value method which considers the significant risks which are relevant to the development
process, including but not limited to construction and letting risks.
The Group’s valuation policies and procedures are disclosed in Notes 11 and 33.
(iv)
Net Realisable Value of Properties Held for Sale
Properties held for sale are carried at lower of cost and net realisable value.
A write-down to net realisable value is made for properties held for sale when the net realisable
value has fallen below cost. In arriving at estimates of net realisable values, management considers
factors such as current market conditions, recent selling prices of the development properties and
comparable development properties less the estimated costs of completion and the estimated costs
necessary to make the sale.
The carrying amounts of properties held for sale are disclosed in Note 19.
(v)
Impairment of Intangible Assets
Impairment exists when the carrying value of an asset or CGU exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs
of disposal calculation is based on available data from binding sales transactions, conducted at
arm’s length, for similar assets or observable market prices less incremental costs for disposing of
the asset. The value in use calculation is based on a discounted cash flow (“DCF”) model. The cash
flows are derived from the budget for the next five to ten years and do not include restructuring
activities that the Group is not yet committed to or significant future investments that will enhance
the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount
rate used for the DCF model as well as the expected future cash inflows and the growth rate used
for extrapolation purposes. These estimates are most relevant to goodwill, brands and management
contracts recognised by the Group. The key assumptions used to determine the recoverable amount
for the different CGUs are disclosed and further explained in Note 16.
The valuations of the goodwill arising from business combinations, brands and management
contracts are disclosed in Notes 16 and 37.
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200 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.2
Significant Accounting Judgements and Estimates (cont’d)
(a)
Key Sources of Estimation Uncertainty (cont’d)
(vi)
Income Taxes
The Group has exposure to income taxes in numerous jurisdictions. Significant assumptions are
required in determining the group-wide provision for income taxes. The ultimate tax determination
of taxability of income and deductibility of expenses from certain transactions are uncertain during
the ordinary course of business. The tax computations of newly created tax consolidated groups
arising from business combinations would also be subject to uncertainty and formal assessment by
tax authorities. The Group recognises the liabilities for expected tax issues based on estimates of
whether additional taxes will be due. Where the final tax outcome of these matters is different from
the amounts that were initially recognised, such differences will impact the income tax and deferred
tax provisions in the period in which such determination is made. The carrying amounts of provision
for taxation, deferred tax assets and liabilities are as disclosed in the Group’s balance sheet.
(vii)
Land Appreciation Tax
Under the Provisional Regulations on Land Appreciation Tax (“LAT”) implemented upon the issuance
of the Provisional Regulations of the People’s Republic of China on 27 January 1995, all gains arising
from the transfer of real estate property in China effective from 1 January 1994 are subject to LAT at
progressive rates ranging from 30% to 60% on the appreciation of land value, being the proceeds of
sales of properties less deductible expenditure including amortisation of land use rights, borrowing
costs and all property development expenditure.
The subsidiaries of the Group engaging in property development business in China are subject to
land appreciation tax. However, the implementation of this tax varies amongst China cities and the
Group has not finalised its land appreciation tax returns with various tax authorities. Accordingly,
significant judgement is required in determining the amount of land appreciation and related taxes.
The ultimate tax determination is uncertain during the ordinary course of business. The Group
recognises these liabilities based on management’s best estimates. When the final tax outcome of
these matters is different from the amounts that were initially recorded, such differences will impact
the provisions for land appreciation tax and consequently, corporate income tax in the period in
which such determination is made.
(b)
Critical Judgements Made in Applying Accounting Policies
In the process of applying the Group's accounting policies, management has made the following judgements,
apart from those involving estimations, which have significant effects on the amounts recognised in the
consolidated financial statements:
(i)
Operating Lease Commitments – Group as Lessor
The Group has entered into commercial property leases on its investment property portfolio. The
Group has determined, based on an evaluation of the terms and conditions of the arrangements, that
it retains all the significant risks and rewards of ownership of these properties which are leased out
on operating leases.
19_0111_FPL_FR2019_FS_v18.indd 200
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Annual Report 2019 201
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.2
Significant Accounting Judgements and Estimates (cont’d)
(b)
Critical Judgements made in Applying Accounting Policies (cont’d)
(ii)
Classification of Property
In determining whether a property is classified as investment property or property, plant and
equipment, the Group determines the business model and how much space is allocated to ancillary
services. The Group further analyses whether the quantum of other income derived from ancillary
services rendered is significant as compared to total revenue and other qualitative factors such as
the accommodation and amenities offerings.
(iii)
Business Combinations
The Group acquires subsidiaries that own real estate. At the time of acquisition, the Group considers
whether each acquisition represents the acquisition of a business or the acquisition of an asset. The
Group accounts for an acquisition as a business combination where an integrated set of activities is
acquired in addition to the property. More specifically, consideration is made of the extent to which
significant processes are acquired and, in particular, the extent of services provided by the subsidiary
(e.g. maintenance, cleaning, security, bookkeeping, hotel services). For example, the Group assessed
the acquisitions of the subsidiaries as disclosed in Note 37(a)(i) as purchases of businesses because of
the strategic management function and associated processes purchased along with the investment
and development properties.
When the acquisition of a subsidiary does not represent a business, it is accounted for as an acquisition
of a group of assets and liabilities. The cost of the acquisition is allocated to the assets and liabilities
acquired based upon their relative fair values, and no goodwill or deferred tax is recognised.
2.3
Basis of Consolidation and Business Combinations
(a)
Basis of Consolidation
The financial year of the Company and all its subsidiaries ends on 30 September unless otherwise stated.
The consolidated financial statements incorporate the financial statements of the Company and all its
subsidiaries made up to 30 September. The financial statements of subsidiaries are prepared using consistent
accounting policies. Adjustments are made to any dissimilar material accounting policies to conform to the
Group’s significant accounting policies. A list of the Group’s significant subsidiaries is disclosed in Note 39.
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries
as at the reporting date.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group
transactions and dividends are eliminated in full.
Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains
control, and continue to be consolidated until the date that such control ceases.
Losses within a subsidiary are attributed to the non-controlling interest (“NCI”) even if that results in a
deficit balance.
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202 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.3
Basis of Consolidation and Business Combinations (cont’d)
(b)
Business Combinations
Business combinations are accounted for by applying the acquisition method. Identifiable assets acquired,
liabilities and contingent liabilities assumed in a business combination are measured initially at their fair
values at the acquisition date. Acquisition-related costs, other than those associated with the issue of debt
or equity securities, incurred in connection with a business combination are recognised as expenses in the
periods in which the costs are incurred and the services are received.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic circumstances and
pertinent conditions as at the acquisition date.
Any contingent consideration payable is recognised at fair value at the acquisition date and included in
the consideration transferred. Subsequent changes to the fair value of the contingent consideration is
recognised in the profit statement. If the contingent consideration is classified as equity, it is not remeasured
until it is finally settled within equity.
In business combinations achieved in stages, previously held equity interests in the acquiree are remeasured
to fair value at the acquisition date and any corresponding gain or loss is recognised in the profit statement.
The Group elects for each individual business combination, whether NCI in the acquiree (if any) that are
present ownership interests and entitle their holders to a proportionate share of net assets in the event
of liquidation, is recognised on the acquisition date at fair value, or at the NCI’s proportionate share of the
acquiree’s identifiable net assets. Other components of NCI are measured on their acquisition date at fair
value, unless another measurement basis is required by another SFRS(I).
Any excess of the sum of the fair value of the consideration transferred in the business combination, the
amount of NCI in the acquiree (if any), and the fair value of the Group’s previously held equity interest in
the acquiree (if any), over the net fair value of the acquiree’s identifiable assets and liabilities is recorded
as goodwill. The accounting policy for goodwill is disclosed in Note 2.11(a). When the excess is negative, a
bargain purchase is recognised in the profit statement on the acquisition date.
The consideration transferred does not include amounts related to the settlement of pre-existing
relationships. Such amounts are generally recognised in the profit statement.
When share-based payment awards (“replacement awards”) are exchanged for awards held by the
acquiree’s employees (“acquiree’s awards”) and relate to past services, then all or a portion of the amount
of the acquirer’s replacement awards is included in measuring the consideration transferred in the business
combination. This determination is based on the market-based value of the replacement awards compared
with the market-based value of the acquiree’s awards and the extent to which the replacement awards
relate to past and/or future service.
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Annual Report 2019 203
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.3
Basis of Consolidation and Business Combinations (cont’d)
(b)
Business Combinations (cont’d)
Transactions with NCI
NCI represent the equity in subsidiaries not attributable, directly or indirectly, to owners of the Company and
are presented separately in the consolidated profit statement and consolidated statement of comprehensive
income, and within equity in the consolidated balance sheet, separately from the equity attributable to
owners of the Company. Changes in the Company’s ownership interest in a subsidiary that do not result in
a loss of control are accounted for as equity transactions. In such circumstances, the carrying amounts of
the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests
in the subsidiary. Any difference between the amount by which the NCI is adjusted and the fair value of the
consideration paid or received is recognised directly in equity and attributable to owners of the Company.
Loss of Control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any NCI and
the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of
control is recognised in the profit statement. If the Group retains any interest in the previous subsidiary,
then such interest is measured at fair value at the date that control is lost. Subsequently, it is accounted for
as an equity-accounted investee or as a financial asset at fair value through other comprehensive income
depending on the level of influence retained.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity
transaction.
Acquisitions before 1 October 2017
As part of transition to SFRS(I), the Group elected not to restate those business combinations that occurred
before the date of transition to SFRS(I), i.e. 1 October 2017. Goodwill arising from acquisitions before 1
October 2017 has been carried forward from the previous FRS framework as at the date of transition.
(c)
Property Acquisitions and Business Combinations
Where property is acquired, via corporate acquisitions or otherwise, management considers the substance
of the assets and activities of the acquired entity in determining whether the acquisition represents the
acquisition of a business. The basis of the judgement is set out in Note 2.2(b)(iii).
Where such acquisitions are not judged to be an acquisition of a business, they are not treated as business
combinations. In such cases, the acquirer shall identify and recognise the individual identifiable assets
acquired and liabilities assumed. The cost to acquire the corporate entity is allocated between the
identifiable assets and liabilities of the entity based on their relative fair values at the acquisition date. Such
a transaction or event does not give rise to goodwill.
19_0111_FPL_FR2019_FS_v18.indd 203
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204 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.3
Basis of Consolidation and Business Combinations (cont’d)
(d)
Acquisitions from Entities under Common Control
Business combinations arising from transfers of interests in entities that are under the control of the
shareholder that controls the Group are accounted for as if the acquisition had occurred at the beginning
of the earliest comparative year presented or, if later, at the date that common control was acquired,
are recognised at the carrying amounts recognised previously in the Group controlling shareholder’s
consolidated financial statements. The components of equity of the acquired entities are added to the same
components within Group equity and any gain/loss arising is recognised directly in equity.
2.4
Investments in Subsidiaries
A subsidiary is an investee that is controlled by the Group. The Group controls an investee when it is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those returns through
its power over the investee.
In the Company’s separate financial statements, investments in subsidiaries are carried at cost less impairment
losses.
2.5
Joint Arrangements and Associates
A joint arrangement is a contractual arrangement whereby two or more parties have joint control. Joint control
is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control.
A joint arrangement is classified either as joint operation or joint venture, based on the rights and obligations of
the parties to the arrangement.
To the extent the joint arrangement provides the Group with rights to the assets and obligations for the liabilities
relating to the arrangement, the arrangement is a joint operation. To the extent the joint arrangement provides
the Group with rights to the net assets of the arrangement, the arrangement is a joint venture.
(a)
Joint Operations
The Group recognises in relation to its interest in a joint operation, its:
–
–
–
–
–
assets, including its share of any assets held jointly;
liabilities, including its share of any liabilities incurred jointly;
revenue from the sale of its share of the output arising from the joint operation;
share of the revenue from the sale of the output by the joint operation; and
expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenues and expenses relating to its interests in a joint
operation in accordance with the accounting policies applicable to the particular assets, liabilities, revenues
and expenses.
19_0111_FPL_FR2019_FS_v18.indd 204
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Annual Report 2019 205
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.5
Joint Arrangements and Associates (cont’d)
(b)
Joint Ventures and Associates
An associate is an entity over which the Group has significant influence over the financial and operating
policy decisions of the investee but does not have control or joint control of those policies. Significant
influence is presumed to exist when the Group holds 20% or more of the voting power of another entity.
The Group accounts for its investments in associates and joint ventures using the equity method from the
date on which it becomes an associate or joint venture.
On acquisition of the investment, any excess of the cost of the investment over the Group’s share of the net
fair value of the investee’s identifiable assets and liabilities is accounted as goodwill and is included in the
carrying amount of the investment. Any excess of the Group’s share of the net fair value of the investee’s
identifiable assets and liabilities over the cost of the investment is included as income in the determination
of the entity’s share of the associate’s or joint venture’s profit or loss in the period in which the investment
is acquired.
Under the equity method, the investments in associates or joint ventures are carried on the balance sheet
at cost plus post-acquisition changes in the Group’s share of net assets of the associates or joint ventures.
The profit statement reflects the share of results of the operations of the associates or joint ventures.
Distributions received from associates or joint ventures reduce the carrying amount of the investment.
Where there has been a change recognised in other comprehensive income (“OCI”) by the associates or joint
ventures, the Group recognises its share of such changes in OCI. Unrealised gains and losses resulting from
transactions between the Group and associates or joint ventures are eliminated to the extent of the interest
in the associates or joint ventures.
When the Group’s share of losses in an associate or joint venture equals or exceeds its interest in the
associate or joint venture, the Group does not recognise further losses, unless it has incurred obligations or
made payments on behalf of the associate or joint venture.
After application of the equity method, the Group determines whether it is necessary to recognise an
additional impairment loss on the Group’s investments in associates or joint ventures. The Group determines
at the end of each reporting period whether there is any objective evidence that the investment in the
associate or joint venture is impaired. If this is the case, the Group calculates the amount of impairment as
the difference between the recoverable amount of the associate or joint venture and its carrying value and
recognises the amount in the profit statement.
Goodwill that forms part of the carrying amount of an investment in an associate or a joint venture is not
recognised separately, and therefore is not tested for impairment separately. Instead, the entire amount
of the investment in an associate or a joint venture is tested for impairment as a single asset when there is
objective evidence that the investment in an associate or a joint venture may be impaired.
The financial statements of joint ventures and associates are prepared at the same reporting date as the
Group. Where the accounting period of the joint ventures and associates is not co-terminous with that of the
Group, the share of results is arrived at from the last audited financial statements available and unaudited
management financial statements to the end of the accounting period. Where necessary, adjustments are
made to bring the accounting policies in line with those of the Group.
In the Company’s separate financial statements, interests in joint ventures and associates are carried at cost
less impairment losses.
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206 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.6
Investment Properties
(a)
Completed Investment Properties
Completed investment properties are held either to earn rental income or for capital appreciation or both,
rather than for use in the production or supply of goods or services, or for administrative purposes, or for
sale in the ordinary course of business and are treated as non-current assets.
Completed investment properties are measured at cost on initial recognition. Costs include expenditure that
is directly attributable to the acquisition of investment properties. Subsequent to recognition, completed
investment properties are measured at fair value and gains or losses arising from changes in the fair value of
completed investment properties are included in the profit statement in the year in which they arise.
Completed investment properties are derecognised when either they have been disposed of or when the
completed investment properties are permanently withdrawn from use and no future economic benefit
is expected from its disposal. Any gains or losses on the retirement or disposal of a completed investment
property are recognised in the profit statement in the year of retirement or disposal. When an investment
property that was previously classified as property, plant and equipment is sold, any related amount
included in the revaluation reserve is transferred to retained earnings.
Transfers are made to or from completed investment properties only when there is a change in use. For a
transfer from completed investment property to owner-occupied property, the deemed cost for subsequent
accounting is the fair value at the date of change in use. For a transfer from owner-occupied property to
completed investment property, the property is accounted for in accordance with the accounting policy for
property, plant and equipment up to the date of change in use.
(b)
Investment Properties under Construction
IPUC are initially stated at cost, which includes cost of land and construction, related overhead expenditure
and financing charges incurred during the period of construction and up to the completion of construction.
IPUC are subsequently measured at fair value annually and on completion, with changes in fair values being
recognised in the profit statement when fair value can be measured reliably.
When completed, IPUC are transferred to completed investment properties.
IPUC for which fair value cannot be determined reliably is measured at cost less impairment.
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Annual Report 2019 207
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.7
Properties Held for Sale
(a)
Development Properties Held for Sale
Development properties held for sale are properties acquired or being constructed for sale in the ordinary
course of business, rather than being held for the Group’s own use, rental or capital appreciation.
Development properties held for sale are held as inventories and are measured at the lower of cost and net
realisable value.
Net realisable value of development properties held for sale is the estimated selling price in the ordinary
course of business, less the estimated costs of completion and the estimated costs necessary to make the
sale.
When completed, development properties held for sale are transferred to completed properties held for
sale.
(b)
Completed Properties Held for Sale
Completed properties held for sale are stated at the lower of cost and net realisable value. Costs include cost
of land and construction, related overhead expenditure, and financing charges (applicable to construction
of a development for which revenue is to be recognised at a point of time), and other related costs incurred
during the period of development.
A write-down to net realisable value is made when it is anticipated that the net realisable value has fallen
below cost.
2.8
Contract Costs
Incremental costs of obtaining a contract for the sale of a development property are capitalised as contract costs
only if (a) these costs relate directly to a contract or an anticipated contract which the Group can specifically
identify; (b) these costs generate or enhance resources of the Group that will be used in satisfying (or in continuing
to satisfy) performance obligations in the future; and (c) these costs are expected to be recovered. Otherwise, such
costs are recognised as an expense immediately.
Non-refundable commissions paid to sales or marketing agents on the sale of real estate units are capitalised as
contract costs.
Capitalised contract costs are subsequently amortised on a systematic basis as the Group recognises the related
revenue on the contract. An impairment loss is recognised in the profit statement to the extent that the carrying
amount of capitalised contract costs exceeds the expected remaining consideration less any directly related costs
not yet recognised as expenses.
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208 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.9
Contract Assets and Liabilities
Contract assets primarily relate to the Group’s rights to consideration for work completed but not billed at the
reporting date on construction of development properties. Contract assets are transferred to trade receivables
when the rights become unconditional. This usually occurs when the Group invoices the customer.
Contract liabilities primarily relate to:
–
–
advance consideration received from customers; and
progress billings issued in excess of the Group’s rights to the consideration.
2.10 Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any impairment. The cost of
an asset comprises its purchase price and any directly attributable costs of bringing the asset to working condition
for its intended use and estimate of the costs of dismantling and removing the items and restoring the site on
which they are located when the Group has an obligation to remove the asset or restore the site. Expenditure for
additions, improvements and renewals are capitalised and expenditure for maintenance and repair are charged to
the profit statement. Where parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) of property, plant and equipment. When assets are sold or
retired, their cost and accumulated depreciation are removed from the financial statements and any gain or loss
resulting from their disposal is included in the profit statement.
Property, plant and equipment except freehold lands, leasehold lands of more than 100 years and assets under
construction, are depreciated on the straight line method so as to write-off the cost of the assets over their
estimated useful lives. No depreciation is provided on freehold lands, leasehold lands of more than 100 years and
assets under construction. The estimated useful lives of the Group’s property, plant and equipment are as follows:
Leasehold lands (less than 100 years)
Buildings
Equipment, furniture and fittings
Others1
1 Others include motor vehicles and golf course.
Lease term
50 years
2 to 10 years
5 to 10 years
Depreciation is recognised from the date that the property, plant and equipment are installed and are ready for
use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be recoverable.
The estimated useful lives, depreciation method and residual values are reviewed periodically to ensure that the
method and period of depreciation are consistent with the expected pattern of economic benefits from items of
property, plant and equipment.
Assets under construction are stated at cost and are not depreciated. Expenditure relating to assets under
construction (including borrowing costs) are capitalised when incurred. Depreciation will commence when the
development is completed.
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Annual Report 2019 209
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.10 Property, Plant and Equipment (cont’d)
Reclassification to Investment Property
When the use of a property changes from owner-occupied to investment property, the property is remeasured to
fair value and reclassified accordingly. Any gain arising on remeasurement is recognised in the profit statement to
the extent that it reverses a previous impairment loss on the specific property, with any remaining gain recognised
in OCI and presented in the revaluation reserve in equity. Any loss is recognised immediately in the profit statement.
When the property is sold, the related amount in the revaluation reserve is transferred to retained earnings.
2.11
Intangible Assets
Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in a
business combination is their fair value as at the date of acquisition. Following initial acquisition, intangible assets
are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated
intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in the
profit statement in the year in which the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for impairment
whenever there is an indication that the intangible assets may be impaired. The amortisation period and the
amortisation method are reviewed at least at each financial year end. Changes in the expected useful life or
the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by
changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.
The amortisation expense on intangible assets with finite useful lives is recognised in the profit statement in the
expense category consistent with the function of the intangible asset.
Intangible assets with indefinite useful lives or not yet available for use are tested for impairment annually, or more
frequently if the events and circumstances indicate that the carrying value may be impaired either individually or
at the CGU level. Such intangible assets are not amortised. The useful life of an intangible asset with an indefinite
useful life is reviewed annually to determine whether the useful life assessment continues to be supportable. If
not, the change in useful life from indefinite to finite is made on a prospective basis.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the profit statement when the asset
is derecognised.
(a)
Goodwill
Goodwill acquired in a business combination is initially measured at cost. Following initial recognition,
goodwill is measured at cost less accumulated impairment losses.
Goodwill is reviewed for impairment, at least annually or more frequently if events or changes in
circumstances indicate that the carrying value may be impaired.
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210 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.11
Intangible Assets (cont’d)
(b)
Brands
The brands were acquired in business combinations. The useful lives of the brands are estimated to be
indefinite because based on the current market share of the brands, management believes there is no
foreseeable limit to the period over which the brands are expected to generate net cash inflows for the
Group.
(c)
Favourable Leases
Favourable leases acquired in a business combination are initially measured at cost and are amortised on a
straight line basis over the lease term of 35 to 70 years.
(d) Management Contracts
Management contracts acquired in business combinations are initially recognised at cost and subsequently
carried at cost less accumulated impairment losses. The useful lives of the management contracts are
estimated to be indefinite because management believes that there is no foreseeable limit to the period
over which the management contracts are expected to generate net cash inflows for the Group.
(e)
Software
Software are initially capitalised at cost, which includes the purchase prices (net of any discounts and
rebates) and other directly attributable costs of preparing the asset for its intended use.
Subsequent to initial recognition, software are amortised to the profit statement on a straight line basis
over their estimated useful lives of 3 to 10 years.
2.12 Non-Current Assets and Liabilities Held For Sale
Non-current assets and liabilities, that are highly probable to be recovered primarily through sale rather than
through continuing use, are classified as held for sale. Immediately before classification as held for sale, the assets
are remeasured in accordance with the applicable SFRS(I). Thereafter, the assets are generally measured at the
lower of their carrying amount and fair value less costs to sell. Impairment losses on initial classification as held
for sale and subsequent gains or losses on remeasurement are recognised in the profit statement. Gains are not
recognised in excess of any cumulative impairment loss.
Intangible assets and property, plant and equipment classified as held for sale are not amortised or depreciated. In
addition, equity accounting of associates and joint ventures ceases once the investments are classified as held for
sale.
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Annual Report 2019 211
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 Financial Instruments
(a) Non-Derivative Financial Assets
Policy Applicable from 1 October 2018
At Initial Recognition
Trade receivables are initially recognised when they are originated. All other financial assets and financial
liabilities are initially recognised when the Group becomes a party to the contractual provisions of the
instrument.
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition
of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are
expensed in the profit statement.
Classification and Subsequent Measurement
The Group classifies its financial assets in the following measurement categories:
–
–
–
amortised costs;
fair value through other comprehensive income (“FVOCI”); and
fair value through profit or loss (“FVTPL”).
The classification depends on the Group’s business model for managing the financial assets as well as the
contractual terms of the cash flows of the financial asset.
Financial assets with embedded derivatives are considered in their entirety when determining whether
their cash flows are solely payment of principal and interest.
The Group reclassifies financial assets when and only when its business model for managing those assets
changes.
(i)
Financial Assets at Amortised Cost
Financial assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. Interest income
from these financial assets is included in interest income using the effective interest rate method.
(ii)
Financial Assets at FVOCI
The Group has elected to recognise changes in fair value of equity securities not held for trading in
OCI as these are strategic investments and the Group considers this to be more relevant. Movements
in fair values of equity investments classified as FVOCI are recognised in OCI. Dividends from equity
investments are recognised in the profit statement as dividend income. On disposal of an equity
investment, any difference between the carrying amount and sales proceed amount would be
recognised in other comprehensive income and transferred to retained profits along with the amount
previously recognised in OCI relating to that asset.
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212 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 Financial Instruments (cont’d)
(a) Non-Derivative Financial Assets (cont’d)
Policy Applicable from 1 October 2018 (cont’d)
(iii)
Financial Assets at FVTPL
Financial assets that are held for trading as well as those that do not meet the criteria for classification
as amortised cost or FVOCI are classified as FVTPL. Movement in fair values and interest income is
recognised in the profit statement in the period in which it arises.
Financial Assets: Business Model Assessment
The Group makes an assessment of the objective of the business model in which a financial asset is
held at a portfolio level because this best reflects the way the business is managed and information
is provided to management. The information considered includes:
(i)
the stated policies and objectives for the portfolio and the operation of those policies in
practice. These include whether management’s strategy focuses on earning contractual
interest income, maintaining a particular interest rate profile, matching the duration of the
financial assets to the duration of any related liabilities or expected cash outflows or realising
cash flows through the sale of the assets;
(ii)
how the performance of the portfolio is evaluated and reported to the Group’s management;
(iii)
(iv)
the risks that affect the performance of the business model (and the financial assets held
within that business model) and how those risks are managed;
the frequency, volume and timing of sales of financial assets in prior periods, the reasons for
such sales and expectations about future sales activity.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition
are not considered sales for this purpose, consistent with the Group’s continuing recognition of the
assets.
Financial assets that are held for trading or are managed and whose performance is evaluated on a
fair value basis are measured at FVTPL.
Assessment Whether Contractual Cash Flows are Solely Payments of Principal and Interest
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on
initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit
risk associated with the principal amount outstanding during a particular period of time and for other
basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as profit margin.
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Annual Report 2019 213
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 Financial Instruments (cont’d)
(a) Non-Derivative Financial Assets (cont’d)
Policy Applicable from 1 October 2018 (cont’d)
(iii)
Financial Assets at FVTPL (cont’d)
In assessing whether the contractual cash flows are solely payments of principal and interest, the
Group considers the contractual terms of the instrument. This includes assessing whether the
financial asset contains a contractual term that could change the timing or amount of contractual
cash flows such that it would not meet this condition. In making this assessment, the Group considers:
(i)
contingent events that would change the amount or timing of cash flows;
(ii)
terms that may adjust the contractual coupon rate, including variable rate features;
(iii)
prepayment and extension features; and
(iv)
terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse
features).
A prepayment feature is consistent with the solely payments of principal and interest criterion if
the prepayment amount substantially represents unpaid amounts of principal and interest on the
principal amount outstanding, which may include reasonable additional compensation for early
termination of the contract. Additionally, for a financial asset acquired at a significant discount or
premium to its contractual par amount, a feature that permits or requires prepayment at an amount
that substantially represents the contractual par amount plus accrued (but unpaid) contractual
interest (which may also include reasonable additional compensation for early termination) is
treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at
initial recognition.
(b)
Non-Derivative Financial Assets
Policy Applicable Before 1 October 2018
Non-derivative financial assets comprise investments in equity and debt securities, trade and other
receivables and cash and cash equivalents.
A financial asset is recognised if the Group becomes a party to the contractual provisions of the financial
asset.
(i)
Financial Assets at Fair Value through Profit or Loss
A financial asset is classified as fair value through profit or loss if it is held for trading or is designated as
such upon initial recognition. Financial assets are designated as fair value through profit or loss if the
Group manages such investments and makes purchase and sale decisions based on their fair value.
Upon initial recognition, attributable transaction costs are recognised in the profit statement when
incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes
therein, which takes into account any dividend income, are recognised in the profit statement.
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214 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 Financial Instruments (cont’d)
(b)
Non-Derivative Financial Assets (cont’d)
Policy Applicable Before 1 October 2018 (cont’d)
(ii)
Available-for-Sale Financial Assets
Available-for-sale financial assets are recognised initially at fair value plus any directly attributable
transaction costs. Subsequent to initial recognition, they are measured at fair value and changes
therein, other than for impairment losses (Note 2.13(i)) and foreign exchange gains and losses on
available-for-sale monetary items, are recognised directly in other comprehensive income. When
an investment is derecognised, the cumulative gain or loss in equity is reclassified to the profit
statement.
Investments in equity securities whose fair value cannot be reliably measured are measured at cost
less accumulated impairment loss.
(iii)
Loans and Receivables
Loans and receivables are financial assets with fixed or determinable payments that are not quoted
in an active market. Such assets are recognised initially at fair value plus any directly attributable
transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised
cost using the effective interest method, less any impairment losses. Loans and receivables comprise
cash and cash equivalents, and trade and other receivables (excluding prepayments).
(c)
Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances and bank deposits. For the purpose of the statement of
cash flows, pledged deposits are excluded whilst bank overdrafts that are repayable on demand and form
an integral part of the Group’s cash management are included as a component of cash and cash equivalents.
(d)
Non-Derivative Financial Liabilities
A financial liability is classified as fair value through profit or loss if it is classified as held for trading or is
designated as such on initial recognition. Directly attributable transaction costs are recognised in the profit
statement as incurred. Financial liabilities at fair value through profit or loss are measured at fair value and
changes therein, including any interest expense, are recognised in the profit statement.
The Group classifies non-derivative financial liabilities under the other financial liabilities category. Such
financial liabilities are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the
effective interest rate method. Other financial liabilities comprise loans, borrowings, debt securities and
trade and other payables.
(e)
Derecognition
Financial assets are derecognised if the Group’s contractual rights to the cash flows from the financial assets
expire or if the Group transfers the financial assets to another party without retaining control or transfers
substantially all the risks and rewards of the assets. The Group derecognises a financial liability when its
contractual obligations are discharged, cancelled or expired.
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Annual Report 2019 215
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 Financial Instruments (cont’d)
(f)
Offsetting
Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only
when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
(g)
Derivative Financial Instruments and Hedge Accounting
Policy Applicable from 1 October 2018
The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk
exposures. Embedded derivatives are separated from the host contract and accounted for separately if the
host contract is not a financial asset and the economic characteristics and risks of the host contract and the
embedded derivative are not closely related, a separate instrument with the same terms as the embedded
derivative would meet the definition of a derivative, and the combined instrument is not measured at fair
value through profit or loss. The method of recognising the resulting gain or loss depends on whether the
derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
On initial designation of the derivative as the hedging instrument, the Group formally documents the
economic relationship between the hedging instrument and hedged item, including the risk management
objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the
methods that will be used to assess the effectiveness of the hedging relationship. The Group makes an
assessment, both at the inception of the hedge relationship as well as on an ongoing basis, of whether
the hedging instruments are expected to be highly effective in offsetting the changes in the fair value
or cash flows of the respective hedged items attributable to the hedged risk. For a cash flow hedge of a
forecast transaction, the transaction should be highly probable to occur and should present an exposure to
variations in cash flows that could ultimately affect the profit statement.
Derivatives are recognised initially at fair value; attributable transaction costs are recognised in the profit
statement when incurred. Subsequent to initial recognition, derivatives are measured at fair value, and
changes therein are accounted for as described below.
Hedging relationships designated under FRS 39 as at 30 September 2018 are treated as continuing hedges
and hedge documentation are aligned with the requirements of SFRS(I) 9.
(i)
Cash Flow Hedges
The Group designates certain derivatives as hedging instruments to hedge the variability in cash
flows associated with highly probable forecast transactions arising from changes in foreign exchange
rates and interest rates.
When a derivative is designated as a cash flow hedging instrument, the effective portion of changes
in the fair value of the derivative is recognised in OCI and accumulated in the hedging reserve. Any
ineffective portion of changes in the fair value of the derivative is recognised immediately in the
profit statement.
Where the hedged forecast transaction subsequently results in the recognition of a non-financial
item, such as inventory, the amounts recognised as OCI is included in the initial cost of the non-
financial item.
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216 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 Financial Instruments (cont’d)
(g)
Derivative Financial Instruments and Hedge Accounting (cont’d)
Policy Applicable from 1 October 2018 (cont’d)
(i)
Cash Flow Hedges (cont’d)
If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold,
expires, is terminated or is exercised, then hedge accounting is discontinued prospectively. When
hedge accounting for cash flow hedges is discontinued, the amount that has been accumulated in
the hedging reserve remains in equity until, for a hedge of a transaction resulting in recognition of a
non-financial item, it is included in the non-financial item’s cost on its initial recognition or, for other
cash flow hedges, it is reclassified to the profit statement in the same period or periods as the hedged
expected future cash flows affect the profit statement.
(ii) Net Investment Hedges
The Group designates certain derivatives and non-derivative financial liabilities as hedges of foreign
exchange risk on a net investment in a foreign operation.
When a derivative instrument or a non-derivative financial liability is designated as the hedging
instrument in a hedge of a net investment in a foreign operation, the effective portion of, for a
derivative, changes in the fair value of the hedging instrument or, for a non-derivative, foreign
exchange gains and losses is recognised in OCI and presented in the translation reserve within equity.
Any ineffective portion of the changes in the fair value of the derivative or foreign exchange gains
and losses on the non-derivative is recognised immediately in the profit statement. The amount
recognised in OCI is reclassified to the profit statement on disposal of the foreign operation.
(h) Derivative Financial Instruments and Hedge Accounting
Policy Applicable before 1 October 2018
The policy applied in the comparative information presented for 2018 is similar to that applied for 2019.
However, embedded derivatives are not separated from host contracts that are financial assets in the scope
of SFRS(I) 9. Instead, the hybrid financial instrument is assessed as a whole for classification of financial
assets under SFRS(I) 9.
(i)
Impairment of Financial Assets
Policy Applicable from 1 October 2018
The Group recognises loss allowances for expected credit losses (ECL) on:
–
–
financial assets measured at amortised cost; and
contract assets (as defined in SFRS(I) 15).
Loss allowances of the Group are measured on either of the following bases.
–
–
12 months ECL: these are ECL that result from default events that are possible within the 12 months
after the reporting date (or for a shorter period if the expected life of the instrument is less than 12
months); or
Lifetime ECL: these are ECL that result from all possible default events over the expected life of a
financial instrument or contract asset.
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Annual Report 2019 217
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 Financial Instruments (cont’d)
(i)
Impairment of Financial Assets (cont’d)
Policy Applicable from 1 October 2018 (cont’d)
Simplified Approach
The Group applied the simplified approach to provide for ECL for all trade receivables and contract assets.
The simplified approach requires the loss allowance to be measured at an amount equal to lifetime ECL.
General Approach
The Group applies the general approach to provide for ECL on all other financial instruments. Under the
general approach, the loss allowance is measured at an amount equal to 12-month ECL at initial recognition.
At each reporting date, the Group assesses whether the credit risk of a financial instrument has increased
significantly since initial recognition. When credit risk has increased significantly since initial recognition,
loss allowance is measured at an amount equal to lifetime ECL.
When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating ECL, the Group considers reasonable and supportable information that
is relevant and available without undue cost or effort. This includes both quantitative and qualitative
information and analysis, based on the Group’s historical experience and informed credit assessment and
includes forward-looking information.
If credit has not increased significantly since initial recognition or if the credit quality of the financial
instruments improves such that there is no longer a significant increase in credit risk since initial recognition,
loss allowance is measured at an amount equal to 12-month ECL.
The Group considers a financial asset to be in default when the borrower is unlikely to pay its credit
obligations to the Group in full, without recourse by the Group to actions such as realising security (if any is
held); or the financial asset is more than 120 days past due.
The Group considers a contract asset to be in default when the customer is unlikely to pay its contractual
obligations to the Group in full, without recourse by the Group to actions such as realising security (if any
is held).
The maximum period considered when estimating ECLs is the maximum contractual period over which the
Group is exposed to credit risk.
Measurement of ECLs
ECLs are probability-weighted estimates of credit losses. Credit losses are measured at the present value of
all cash shortfalls (i.e. the difference between the cash flows due to entity in accordance with the contract
and the cashflows that the Group expects to receive). ECLs are discounted at the effective interest rate of
the financial asset.
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218 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 Financial Instruments (cont’d)
(i)
Impairment of Financial Assets (cont’d)
Policy Applicable from 1 October 2018 (cont’d)
Credit-Impaired Financial Assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost are
credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental
impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
–
–
–
–
–
significant financial difficulty of the borrower or issuer;
a breach of contract such as a default or being more than 120 days past due;
the restructuring of a loan or advance by the Group on terms that the Group would not consider
otherwise;
it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
the disappearance of an active market for a security because of financial difficulties.
Presentation of ECL in the Balance Sheet
Loss allowances for financial assets measured at amortised cost and contract assets are deducted from the
gross carrying amount of these assets.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that
there is no realistic prospect of recovery. This is generally the case when the Group determines that the
debtor does not have assets or sources of income that could generate sufficient cash flows to repay the
amounts subject to the write-off. However, financial assets that are written off could still be subject to
enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.
Policy Applicable before 1 October 2018
A financial asset not carried at fair value through profit or loss, including an interest in an associate and joint
venture, is assessed at each reporting period to determine whether there is any objective evidence that it
is impaired. A financial asset is impaired if objective evidence indicates that a loss event has been occurred
after the initial recognition of the asset, and that the loss event had a negative effect on the estimated
future cash flows of that asset that can be estimated reliably.
Objective evidence that financial assets (including equity securities) are impaired can include default or
delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would
not consider otherwise, indications that a debtor or issuer will enter bankruptcy, adverse changes in the
payment status of borrowers or issuers in the Group, economic conditions that correlate with defaults or
the disappearance of an active market for a security.
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Annual Report 2019 219
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 Financial Instruments (cont’d)
(i)
Impairment of Financial Assets (cont’d)
Policy Applicable before 1 October 2018 (cont’d)
All individually significant financial assets are assessed for specific impairment on an individual basis. All
individually significant financial assets found not to be specifically impaired are then collectively assessed
for any impairment that has incurred but not yet identified. The remaining financial assets that are not
individually significant are collectively assessed for impairment by grouping together such instruments
with similar risk characteristics.
In assessing collective impairment, the Group uses historical trends of the probability of default, timing of
recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current
economic and credit conditions are such that the actual losses are likely to be greater or lesser than that
suggested by historical trends.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount, and the present value of the estimated future cash flows discounted at the
original effective interest rate. Losses are recognised in the profit statement and reflected as an allowance
account against receivables. When the Group considers that there are no realistic prospects of recovery of
the asset, the relevant amounts are written off. When a subsequent event causes the amount of impairment
loss to decrease, the decrease in impairment loss is reversed in the profit statement.
Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses
accumulated in the available-for-sale reserve in equity to the profit statement. The cumulative loss that
is reclassified from equity to the profit statement is the difference between the acquisition cost, net of
any principal repayment and amortisation, and the current fair value, less any impairment loss recognised
previously in the profit statement. Changes in impairment provision attributable to application of the
effective interest method are reflected as a component of interest income.
If, in a subsequent period, the fair value of an impaired available-for-sale debt security increases and the
increase can be related objectively to an event occurring after the impairment loss was recognised in the
profit statement, then the impairment loss is reversed, with the amount of the reversal recognised in the
profit statement. However, any subsequent recovery in the fair value of an impaired available-for-sale
equity security is recognised in other comprehensive income.
2.14 Provisions
Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event and
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation,
and a reliable estimate can be made of the amount of the obligation.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is no longer
probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed.
Where the effect of time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.
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220 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.15
Impairment of Non-Financial Assets
The carrying amounts of the Group’s non-financial assets, other than investment properties, development
properties held for sale, contract assets and deferred tax assets, are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts are
estimated. For goodwill, the recoverable amount is estimated at each reporting date, and as and when indicators
of impairment are identified, an impairment loss is recognised if the carrying amount of an asset or its related cash-
generating unit (CGU) exceeds its estimated recoverable amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually are grouped together
into the smallest group of assets that generate cash inflows from continuing use that are largely independent
of the cash inflows of other assets or CGU. Subject to an operating segment ceiling test, for the purposes of
goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which
impairment is tested reflects the lowest level at which goodwill is monitored for internal reporting purposes.
Goodwill acquired in a business combination is allocated to groups of CGU that are expected to benefit from the
synergies of the combination.
Impairment losses are recognised in the profit statement. Impairment losses recognised in respect of CGUs are
allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying
amounts of the other assets in the CGU on a pro-rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised
in prior periods are assessed at each reporting date for any indication that the loss has decreased or no longer
exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had
been recognised.
Goodwill that forms part of the carrying amount of an investment in an associate or a joint venture is not recognised
separately, and therefore is not tested for impairment separately. Instead, the entire amount of the investment in
an associate or a joint venture is tested for impairment as a single asset when there is objective evidence that the
investment in an associate or a joint venture may be impaired.
2.16
Income Taxes
Tax expense comprises current and deferred tax, as well as land appreciation tax in China. Tax expense is recognised
in the profit statement except to the extent that it relates to a business combination, or items recognised directly
in equity or in OCI.
The Group has determined that interest and penalties related to income taxes, including uncertain tax treatments,
do not meet the definition of income taxes, and therefore accounted for them under SFRS(I) 1-37 Provisions,
Contingent Liabilities and Contingent Assets.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates
enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous
years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid
or received that reflects uncertainty related to income taxes, if any.
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Annual Report 2019 221
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.16
Income Taxes (cont’d)
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
–
–
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss;
temporary differences related to investments in subsidiaries, associates and joint arrangements to the
extent that the Group is able to control the timing of the reversal of the temporary difference and it is
probable that they will not reverse in the foreseeable future; and
–
taxable temporary differences arising on the initial recognition of goodwill.
The measurement of deferred taxes reflects the tax consequences that would follow the manner in which the
Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. For
investment property that is measured at fair value, the presumption that the carrying amount of the investment
property will be recovered through sale has not been rebutted. Deferred tax is measured at the tax rates that are
expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or
substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and
assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax
entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities
will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the
extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred
tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
Land appreciation tax relates to the gains arising from the transfer of real estate property in China. Land appreciation
tax is levied from 30% to 60% on the appreciation of land value, being the proceeds of sales of properties less
deductible expenditure including amortisation of land use rights, borrowing costs and all property development
expenditure.
2.17 Borrowing Costs
Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to the
acquisition, construction or production of that asset. Capitalisation of borrowing costs commences when the
activities to prepare the asset for its intended use or sale are in progress and the expenditure and borrowing
costs are incurred. Borrowing costs are capitalised until the assets are substantially completed for their intended
use or sale. All other borrowing costs are expensed in the period they occur using the effective interest method.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
2.18 Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value
of consideration received or receivable, taking into account contractually defined terms of payment and excluding
taxes or duty. The following specific recognition criteria must also be met before revenue is recognised:
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222 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.18 Revenue Recognition (cont’d)
(a)
Properties Held for Sale
The Group develops and sells residential and mixed development projects to customers through fixed-price
contracts. Revenue is recognised when the control over a development property has been transferred to the
customer. At contract inception, the Group assesses whether the Group transfers control of the residential
project over time or at a point in time by determining if (a) its performance does not create an asset with
an alternative use to the Group; and (b) the Group has an enforceable right to payment for performance
completed to date.
Where a development property has no alternative use for the Group due to contractual restriction, and the
Group has enforceable rights to payment for performance completed to date arising from the contractual
terms, revenue is recognised over time by reference to the Group’s progress towards completing the
construction of the development property. The measure of progress is determined based on the proportion
of development costs incurred to date to the estimated total development costs. Costs incurred that are not
related to the contract or that do not contribute towards satisfying a performance obligation are excluded
from the measure of progress and instead are expensed as incurred.
In respect of contracts where the Group does not have an enforceable right to payment for performance
completed to date, revenue is recognised only when the completed property is delivered to the customer
and the customer has accepted it in accordance with the sales contract.
Under certain payment schemes, the time when payments are made by the buyer and the transfer of control
of the property to the buyer do not coincide and where the difference between the timing of receipt of the
payments and the satisfaction of a performance obligation is 12 months or more, the Group adjusts the
transaction price with its customer and recognises a financing component. In adjusting for the financing
component, the Group uses a discount rate that would reflect that of a separate financing transaction
between the Group and its customer at contract inception. A finance income or finance expense will be
recognised depending on the arrangement.
The Group has elected to apply the practical expedient not to adjust the transaction price for the existence
of significant financing component when the period between the transfer of control of goods or services to
a customer and the payment date is 12 months or less.
Revenue is measured at the transaction price agreed under the contract entered into with customers.
Estimates of revenues, costs or extent of progress towards completion are revised if circumstances change.
Any resulting increases or decreases in estimated revenues or costs are reflected in the profit statement in
the period in which the circumstances that give rise to the revision become known by management.
The customer is invoiced based on a payment schedule which is typically triggered upon achievement of
specified construction milestones. If the value of the goods transferred by the Group exceeds the payments,
a contract asset is recognised. If the payments exceed the value of the goods transferred, a contract liability
is recognised. The accounting policy for contract assets and contract liabilities is set out in Note 2.9.
(b)
Rental Income
Rental and related income from completed investment properties are recognised on a straight line basis
over the lease term commencing on the date from which the lessee is entitled to exercise its right to use
the leased asset. Contingent rentals, which include gross turnover rental, are recognised as income in the
accounting period in which it is earned and the amount can be reliably measured.
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Annual Report 2019 223
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.18 Revenue Recognition (cont’d)
(c)
Hotel Income
Revenue from hotel operations is recognised on an accrual basis, upon rendering of the relevant services.
(d)
Dividends
Dividend income is recognised when the Group’s right to receive the payment is established.
(e)
Interest Income
Interest income is recognised using the effective interest method.
(f) Management Fees
Management fee is recognised at the point when such services are rendered on an accrual basis.
2.19 Foreign Currencies
(a)
Functional Currency
Items included in the financial statements of each entity in the Group are measured using the currency that
best reflects the economic substance of the underlying events and circumstances relevant to the entity (the
“functional currency”). The consolidated financial statements and financial statements of the Company are
presented in Singapore Dollars, the functional currency of the Company.
(b)
Foreign Currency Transactions
Transactions in foreign currencies are measured in the respective functional currencies of the Company and
its subsidiaries at rates of exchange approximating those ruling at transaction dates. Monetary assets and
liabilities denominated in foreign currencies are translated at the rates ruling at the reporting date. The
foreign currency gain or loss on monetary items is the difference between amortised cost in the functional
currency at the beginning of the year, adjusted for effective interest and payments during the year, and the
amortised cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary
assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using
the exchange rates ruling at the initial transaction dates. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value was measured.
Foreign currency differences arising on the settlement of monetary items or on translating monetary items
at the reporting date are recognised in the profit statement except for:
(i)
(ii)
an investment in financial asset at FVOCI (2018: available-for-sale equity instruments (except
impairment in which case foreign currency differences that have been recognised in OCI are
reclassified to the profit statement));
a financial liability designated as a hedge of the net investment in a foreign operation to the extent
that the hedge is effective; and
(iii)
qualifying cash flow hedges to the extent the hedges are effective.
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224 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.19 Foreign Currencies (cont’d)
(c)
Foreign Currency Translation
The results and financial position of foreign operations are translated into Singapore Dollars using the
following procedures:
–
–
assets and liabilities are translated at the closing rate ruling at that reporting date; and
income and expenses are translated at average exchange rates for the year, which approximates the
exchange rates at the dates of the transactions.
All resulting exchange differences are taken directly to OCI and accumulated in the foreign currency
translation reserve in equity.
However, if the foreign operation is a non-wholly-owned subsidiary, then the relevant proportionate share
of the translation difference is allocated to the NCI. When a foreign operation is disposed such that control,
significant influence or joint control is lost, the cumulative amount in the translation reserve related to that
foreign operation is reclassified to the profit statement as part of the gain or loss on disposal. When the
Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining
control, the relevant proportion of the cumulative amount is reattributed to NCI. When the Group disposes
of only part of its investment in an associate or joint venture that includes a foreign operation while retaining
significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to the
profit statement as part of the gain or loss on disposal.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither
planned nor likely to occur in the foreseeable future, foreign exchange gains and losses arising from such a
monetary item that are considered to form part of a net investment in a foreign operation are recognised in
OCI and are accumulated in the foreign currency translation reserve in equity.
2.20 Employee Benefits
(a)
Defined Contribution Plan
As required by law, the Group makes contributions to state pension schemes in accordance with local
regulatory requirements. The pension contributions are recognised as compensation expense in the same
period as the employment that gives rise to the contribution.
(b)
Employee Leave Entitlement
Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made
for the estimated liability for leave as a result of services rendered by employees up to the reporting date.
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Annual Report 2019 225
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.20 Employee Benefits (cont’d)
(c)
Equity Plans
For equity-settled share-based payment transactions, the fair value of the services received is recognised
as an expense with a corresponding increase in equity over the vesting period during which the employees
become unconditionally entitled to the equity instrument. The fair value of the services received is
determined by reference to the fair value of the equity instrument granted at the grant date. At each
reporting date, the number of equity instruments that are expected to be vested are estimated. The impact
of the revision of the original estimates is recognised as an expense and as a corresponding adjustment
to equity over the remaining vesting period, unless the revision to the original estimates is due to market
conditions. No adjustment is made if the revision or actual outcome differs from the original estimates due
to market conditions.
For cash-settled share-based payment transactions, the fair value of the goods or services received is
recognised as an expense with a corresponding increase in liability. The fair value of the services received
is determined by reference to the fair value of the liability. Until the liability is settled, the fair value of the
liability is remeasured at each reporting date and at the date of settlement, with any changes in fair value
recognised for the period.
The proceeds received from the exercise of the equity instruments, net of any directly attributable
transaction costs, are credited to share capital when the equity instruments are exercised.
2.21 Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement
at inception date: whether fulfilment of the arrangement is dependent on the use of a specific asset or assets and
the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement.
(a)
As Lessee
Finance leases which transfer to the Group substantially all the risks and rewards incidental to ownership
of the leased item, are capitalised at the inception of the lease at the fair value of the leased asset or, if
lower, at the present value of the minimum lease payments. Any initial direct costs are also added to the
amount capitalised. Lease payments are apportioned between the finance charges and reduction of the
lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance
charges are charged to the profit statement. Contingent rents, if any, are charged as expenses in the periods
in which they are incurred.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the
lease term, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease
term.
Operating lease payments are recognised as an expense in the profit statement on a straight line basis over
the lease term. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of
rental expense over the lease term on a straight line basis.
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226 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.21 Leases (cont’d)
(b)
As Lessor
Leases where the Group retains substantially all the risks and rewards of ownership of the asset are classified
as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying
amount of the leased asset and recognised over the lease term on the same bases as rental income. The
accounting policy for rental income is stated in Note 2.18. Contingent rents are recognised as revenue in the
period in which they are earned.
2.22 Exceptional Items
Exceptional items are one-off items of income and expense of such size, nature or incidence that their disclosure is
relevant to explain the performance of the Group and the Company for the year arising from infrequent and non-
operating events.
2.23 Contingencies
A contingent liability is:
–
–
a possible obligation that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Group and the Company; or
a present obligation that arises from past events but is not recognised because it is not probable that an
outflow of resources embodying economic benefits will be required to settle the obligation or the amount
of obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognised on the balance sheet of the Group and the Company, except for contingent
liabilities assumed in a business combination that are present obligations and which the fair values can be reliably
determined.
2.24 New standards and interpretations not adopted
A number of new standards, amendments to standards and interpretations are not yet effective and have not been
applied in preparing these financial statements. An explanation of the impact, if any, on adoption of these new
requirements is provided in Note 41.
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Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
3.
REVENUE
Properties held for sale:
– recognised at a point in time
– recognised over time
Rent and related income
Hotel income
Fee income and others
Annual Report 2019 227
Group
2019
$'000
2018
(Restated)
$'000
1,503,959
102,427
1,606,386
1,541,014
573,874
70,669
3,791,943
2,122,114
359,896
2,482,010
1,208,296
575,481
55,085
4,320,872
As at 30 September 2019, the Group has property development income of $77,463,000 which is expected to be
recognised over the next 3 years as construction of the development properties progresses.
On adoption of SFRS(I) 15, the Group applied the practical expedient in paragraph 121 of SFRS(I) 15 and does not
disclose information about its remaining performance obligations if:
–
–
the performance obligation is part of a contract that has an original expected duration of one year or less; or
the Group has a right to invoice a customer in an amount that corresponds directly with its performance to
date, and it recognises revenue in that amount.
Disaggregation of revenue
In the following table, revenue is disaggregated by major products and services lines and timing of revenue
recognition. The table also includes a reconciliation of the disaggregated revenue with the Group’s reportable
segments.
Year ended 30 September 2019
Business Segment
Major products and service lines
Property development
Rent and related income
Hotel operations
Other
Timing of revenue recognition
Products transferred at a point
in time
Products and services
transferred over time
Singapore
SBU
$'000
Australia
SBU
$'000
Hospitality
SBU
$'000
Europe
and rest
of Asia
$'000
Corporate
and
Others
$'000
117,445
557,698
–
11,906
687,049
1,168,732
336,319
–
548
1,505,599
–
199,502
573,874
24,900
798,276
320,209
447,495
–
33,315
801,019
15,018
1,168,732
–
320,209
672,031
687,049
336,867
1,505,599
798,276
798,276
480,810
801,019
–
–
–
–
–
–
–
–
Group
$'000
1,606,386
1,541,014
573,874
70,669
3,791,943
1,503,959
2,287,984
3,791,943
19_0111_FPL_FR2019_FS_v18.indd 227
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228 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
3.
REVENUE (CONT’D)
Year ended 30 September 2018
Business Segment
Major products and service lines
Property development
Rent and related income
Hotel operations
Other
Timing of revenue recognition
Products transferred at a point
in time
Products and services
transferred over time
Singapore
SBU
$'000
Australia
SBU
$'000
Hospitality
SBU
$'000
Europe
and rest
of Asia
$'000
Corporate
and
Others
$'000
Group
$'000
879,022
462,277
–
15,918
1,357,217
1,276,868
305,872
–
954
1,583,694
–
204,730
575,481
21,957
802,168
326,120
235,417
–
15,709
577,246
–
–
–
547
547
2,482,010
1,208,296
575,481
55,085
4,320,872
519,126
1,276,868
–
326,120
–
2,122,114
838,091
1,357,217
306,826
1,583,694
802,168
802,168
251,126
577,246
547
547
2,198,758
4,320,872
4.
TRADING PROFIT
Trading profit includes the following:
(a)
Cost of Sales includes:
2019
Note
$'000
Group
2018
(Restated)
$'000
Cost of properties held for sale
Write-down to net realisable value of properties held for sale
Operating costs of investment properties that generated
rental income
Operating costs of hotels
Depreciation of property, plant and equipment
Staff costs
Defined contribution plans
Allowance for doubtful trade receivables
Write-back of allowance for doubtful trade receivables
Bad debts written off
19
12
17
17
(1,240,285)
(93,952)
(1,987,546)
(30,685)
(700,866)
(294,555)
(46,245)
(274,197)
(17,650)
(3,713)
2,309
(343)
(401,603)
(205,991)
(45,586)
(255,544)
(17,633)
(1,962)
2,059
(34)
(b)
Other Income/(Losses) includes:
Net fair value change on derivative financial instruments
Foreign exchange loss
(Loss)/gain on disposal of property, plant and equipment
Others
29,980
(29,906)
(120)
6,547
6,501
36,787
(44,527)
83
3,326
(4,331)
19_0111_FPL_FR2019_FS_v18.indd 228
11/12/19 5:42 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
4.
TRADING PROFIT (CONT’D)
(c)
Administrative Expenses includes:
Depreciation of property, plant and equipment
Amortisation of intangible assets
Audit fees paid to:
– Auditors of the Company
– Other auditors
Non-audit fees paid to:
– Auditors of the Company
– Other auditors
Directors of the Company:
– Fee
– Remuneration of members of Board Committees
Key executive officers:
– Remuneration
– Provident fund contribution
– Employee share-based expense
Staff costs
Defined contribution plans
Employee share-based expense
5.
INTEREST INCOME
Interest income from loans and receivables:
– Related parties
– Fixed deposits and bank balances
Interest rate swaps:
– Unrealised
– Realised
Annual Report 2019 229
Group
2019
$'000
2018
$'000
Note
12
16
(11,183)
(3,673)
(10,180)
(2,961)
(1,883)
(4,083)
(637)
(1,688)
(1,148)
(730)
(1,531)
(3,801)
(742)
(1,575)
(1,072)
(718)
(10,568)
(107)
(3,479)
(202,373)
(12,225)
(16,283)
(9,743)
(105)
(3,068)
(190,167)
(12,073)
(15,812)
Group
2019
$'000
2018
(Restated)
$'000
8,001
63,304
71,305
739
296
72,340
8,000
26,978
34,978
1,227
–
36,205
19_0111_FPL_FR2019_FS_v18.indd 229
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230 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
6.
INTEREST EXPENSE
Interest expense:
– Loans and borrowings
– Related parties
Interest rate swaps:
– Unrealised
– Realised
7.
EXCEPTIONAL ITEMS
Net transaction costs on acquisitions and disposals of
subsidiaries, joint ventures and associates
Net gain/(loss) on acquisitions and disposals of
subsidiaries, joint ventures and associates
Impairment of intangible assets (Note 16)
Impairment of property, plant and equipment (Note 12)
8.
TAXATION
(a)
Components of Income Tax Expense
The components of income tax expense for the years ended 30 September are:
Based on profit for the year:
– Current taxation
– Withholding tax
– Deferred taxation
Over/(under) provision in prior years:
– Current taxation
– Deferred taxation
Group
2019
$'000
2018
(Restated)
$'000
(417,793)
(21,795)
(439,588)
(1,427)
(371)
(441,386)
(330,001)
(3,396)
(333,397)
(2,184)
(300)
(335,881)
Group
2019
$'000
2018
$'000
(13,644)
236
723
(2,436)
(64,660)
(37,230)
(114,811)
(156,323)
–
(158,523)
Group
2019
$'000
2018
(Restated)
$'000
(270,306)
(14,409)
(10,184)
(294,899)
(304,543)
(12,488)
(27,502)
(344,533)
20,735
(11,971)
8,764
(286,135)
3,170
306
3,476
(341,057)
Comparative information on LAT has been reclassified from cost of sales to tax expense to conform with
current year presentation. LAT payable has similarly been reclassified from trade and other payables to
current tax payable.
19_0111_FPL_FR2019_FS_v18.indd 230
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Annual Report 2019 231
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
8.
TAXATION (CONT’D)
(b)
Tax Recognised in OCI
2019
Before
tax
$’000
Tax
expense
$’000
Net
of tax
$’000
Before
tax
$’000
2018
(Restated)
Tax
expense
$’000
Net
of tax
$’000
Group
Net fair value change
of cash flow hedges
Foreign currency translation
Share of other comprehensive
income of joint ventures and
associates
(113,037)
(293,256)
(3,779)
(410,072)
–
–
–
–
(113,037)
(293,256)
27,102
(401,483)
(3,779)
(410,072)
1,372
(373,009)
–
–
–
–
27,102
(401,483)
1,372
(373,009)
(c)
Reconciliation between Tax Expense and Accounting Profit
Group
2019
$'000
2018
(Restated)
$'000
Profit before taxation
Less: Share of results of joint ventures and associates, net of tax
Profit before share of results of joint ventures and associates and taxation
1,353,127 1,527,017
(239,152)
1,066,072 1,287,865
(287,055)
A reconciliation of the statutory tax rate to the Group’s effective tax rate applicable to profit before taxation
and share of results of joint ventures and associates, net of tax for the years ended 30 September are as
follows:
Singapore statutory rate
Effect of different tax rates of other countries
Income not subject to tax
Expenses not deductible for tax purposes
Losses not allowed to be set off against future taxable profits
Utilisation of previously unrecognised tax losses
Overprovision in prior years
Tax benefits on current losses not recognised
Tax effect of fair value change on investment properties
Withholding tax
Tax effect of distributions to perpetual securities holders
Land appreciation tax
Effect of tax reduction on land appreciation tax
Others
Effective tax rate
Group
2019
%
2018
(Restated)
%
17.0
4.6
(3.5)
3.5
2.2
(0.5)
(0.8)
1.1
(2.5)
1.3
(1.4)
6.4
(1.6)
1.0
26.8
17.0
5.8
(4.5)
3.1
2.1
(0.2)
(0.2)
1.2
(1.1)
1.0
(1.0)
5.1
(1.3)
(0.5)
26.5
19_0111_FPL_FR2019_FS_v18.indd 231
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232 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
9.
EARNINGS PER SHARE
Earnings per share is computed by dividing the Group’s attributable profit (after adjusting for distributions to
perpetual securities holders of $95,206,000 (2018: $79,271,000), net of distributions of $3,354,000 (2018:
$3,399,000) to perpetual securities holders borne by non-controlling interests) by the weighted average number
of ordinary shares in issue during the financial year. In respect of diluted earnings per share, the denominator is
adjusted for the effects of dilutive potential ordinary shares, which comprise share awards granted to employees.
The following table reflects the profit and share data used in the computation of basic and diluted earnings per
share for the years ended 30 September:
Attributable profit to shareholders of the Company
after adjusting for distributions to perpetual securities holders:
– before fair value change and exceptional items
– after fair value change and exceptional items
Weighted average number of ordinary shares in issue
Effects of dilution – share plans
Weighted average number of ordinary shares for
diluted earnings per share computation
Earnings Per Share ("EPS")
(a) Basic earnings per share:
– before fair value change and exceptional items
– after fair value change and exceptional items
(b) On a fully diluted basis:
– before fair value change and exceptional items
– after fair value change and exceptional items
Group
2019
2018
(Restated)
$'000
$'000
254,869
465,093
403,514
670,357
No. of Shares
'000
'000
2,917,873
2,910,558
27,260
25,936
2,945,133
2,936,494
8.73¢
15.94¢
13.86¢
23.03¢
8.65¢
15.79¢
13.74¢
22.83¢
19_0111_FPL_FR2019_FS_v18.indd 232
11/12/19 5:42 PM
Annual Report 2019 233
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
10.
SEGMENT INFORMATION
Management determines the operating segments based on the reports reviewed and used by the Group CEO (the
chief operating decision maker) for strategic decision making and resources allocation.
The Group’s reportable operating segments comprise the following:
(i)
(ii)
Singapore Strategic Business Unit (“SBU”), which encompasses the development, ownership, management
and operation of residential, retail and commercial properties held by Frasers Centrepoint Trust (“FCT”),
Frasers Commercial Trust (“FCOT”) and non-REIT entities in Singapore.
Australia SBU, which encompasses the development, ownership, management and operation of residential,
retail, commercial and industrial properties held by non-REIT entities in Australia and New Zealand and
logistics properties held by Frasers Logistics and Industrial Trust (“FLT”) in Australia and continental
Europe.
(iii)
Hospitality SBU, which encompasses the Group’s hospitality operations and the ownership/management
and operation of hotels and serviced apartments held by Frasers Hospitality Trust (“FHT”) and non-REIT
entities.
(iv)
Europe and rest of Asia, which comprises development activities and/or ownership and management of
investment properties in China, the United Kingdom and continental Europe, Vietnam and Thailand.
The segments are organised based on their products and services. The Group CEO reviews internal management
reports of each segment at least quarterly.
Geographically, management reviews the performance of the businesses in Singapore, Australia, Europe, China
and Others. Geographical segment revenue is based on the geographical location of the customers. Geographical
segment assets are based on the geographical location of the assets.
Information regarding the results of each reportable segment is included below. Performance is measured based
on segment profit before interest, fair value change, taxation and exceptional items (“PBIT”), as included in the
internal management reports that are reviewed by the Group CEO. Segment PBIT is used to measure performance
as management believes that such information is the most relevant in evaluating the results of certain segments
relative to other entities that operate within these industries. Group financing (including finance costs) and income
taxes are managed on a group basis and are not allocated to operating segments. Segment assets and liabilities are
presented net of inter-segment balances. Inter-segment pricing is determined on arm’s length basis.
19_0111_FPL_FR2019_FS_v18.indd 233
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234 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
10.
SEGMENT INFORMATION (CONT’D)
Year ended 30 September 2019
The following table presents financial information regarding business segments:
Business Segment
Singapore
SBU
$'000
Australia
SBU
$'000
Hospitality
SBU
$'000
Europe and
rest of Asia
$'000
Corporate
and Others
$'000
Group
$'000
Revenue
687,049
1,505,599
798,276
801,019
–
3,791,943
Subsidiaries
Joint ventures and associates
PBIT
Interest income
Interest expense
Profit before fair value change,
taxation and exceptional items
Fair value change on investment
properties
Profit before taxation and
exceptional items
Exceptional items
Profit before taxation
Taxation
Profit for the year
Non-current assets
Current assets
Investments in joint ventures and
associates
Tax assets
Bank deposits
Cash and cash equivalents
Total assets
Liabilities
Loans and borrowings
Tax liabilities
Total liabilities
Other segment information
Additions/transfers between
BUs of non-current assets
Net additions to intangible assets
Depreciation
Amortisation
Write-down to net realisable value
of properties held for sale
Attributable profit before fair value
change and exceptional items(1)
Fair value change
Exceptional items
Attributable profit
305,960
159,611
465,571
274,728
5,867
280,595
131,631
198
131,829
345,402
121,379
466,781
–
(52,149) 1,005,572
287,055
(52,149) 1,292,627
72,340
(441,386)
923,581
277,007
212,599
(19,685)
91,886
(17,450)
544,357
(30,757)
(19,424)
(105,756)
42,146
(1,020)
1,467,938
(114,811)
1,353,127
(286,135)
1,066,992
11,375,743
1,411,429
4,602,271
2,221,675
4,638,718
91,845
5,313,264
2,156,689
141,019 26,071,015
5,902,504
20,866
772,351
52,516
55
1,191,649
–
516,250
514,579
256,959
1,608,882
157,869
2,016,571
62,864
467,023
3,112,956
37,632,933
3,054,539
17,395,899
1,091,949
21,542,387
2,981,467
(94)
(380)
(482)
517,334
1
(6,332)
(15)
90,078
(26)
(45,714)
(1,339)
843,942
2,080
(2,544)
(849)
1,417
2,947
(2,462)
(988)
4,434,238
4,908
(57,432)
(3,673)
(39,000)
(40,281)
–
(14,671)
–
(93,952)
22,485
200,191
(26,071)
196,605
47,749
85,742
(3,666)
129,825
(5,667)
(25,107)
(90,701)
(121,475)
180,756
78,265
10,041
269,062
104,752
(17,450)
(1,020)
86,282
350,075
321,641
(111,417)
560,299
19_0111_FPL_FR2019_FS_v18.indd 234
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Annual Report 2019 235
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
10.
SEGMENT INFORMATION (CONT’D)
Year ended 30 September 2019 (cont’d)
The following table presents financial information regarding geographical segments:
Geographical Segment
Singapore
$'000
Australia
$'000
Europe(2)
$'000
China
$'000
Others(3)
$'000
Group
$'000
Revenue
PBIT
765,026
376,000
1,663,088
308,740
665,275
196,958
310,636
250,650
387,918
160,279
3,791,943
1,292,627
Non-current assets
Current assets
Investments in joint ventures and
associates
Tax assets
Bank deposits
Cash and cash equivalents
Total assets
Liabilities
Loans and borrowings
Tax liabilities
Total liabilities
Other segment information
Additions/transfers between
BUs of non-current assets
Net additions to intangible assets
Depreciation
Amortisation
Write-down to net realisable value
of properties held for sale
Exceptional items
12,119,367
1,411,623
4,889,772
2,224,779
5,351,730
459,055
330,219
275,810
3,379,927 26,071,015
5,902,504
1,531,237
706,427
52,517
–
300,505
957,122
741,986
517,153
260,754
779,785
754,861
2,016,571
62,864
467,023
3,112,956
37,632,933
3,054,539
17,395,899
1,091,949
21,542,387
3,024,116
2,724
(13,463)
(1,692)
111,528
97
(18,606)
(105)
393,125
(4,373)
(18,690)
(1,426)
2,951
–
(92)
(114)
902,518
6,460
(6,581)
(336)
4,434,238
4,908
(57,432)
(3,673)
(39,000)
(31,914)
(40,281)
(6,031)
(13,910)
(94,562)
(436)
–
(325)
17,696
(93,952)
(114,811)
(1)
(2)
The attributable profit disclosed includes inter-segment interest income and expense, in order to reflect the cost of financing of the Group’s internal
funds between segments.
Europe – United Kingdom and continental Europe.
(3) Others – Japan, Thailand, New Zealand, Vietnam, the Philippines, Indonesia and Malaysia.
19_0111_FPL_FR2019_FS_v18.indd 235
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236 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
10.
SEGMENT INFORMATION (CONT’D)
Year ended 30 September 2018 (Restated)
The following table presents financial information regarding business segments:
Business Segment
Singapore
SBU
$'000
Australia
SBU
$'000
Hospitality
SBU
$'000
Europe and
rest of Asia
$'000
Corporate
and Others
$'000
Group
$'000
Revenue
1,357,217
1,583,694
802,168
577,246
547
4,320,872
Subsidiaries
Joint ventures and associates
PBIT
Interest income
Interest expense
Profit before fair value change,
taxation and exceptional items
Fair value change on investment
properties
Profit before taxation and
exceptional items
Exceptional items
Profit before taxation
Taxation
Profit for the year
Non-current assets
Current assets
Investments in joint ventures
and associates
Tax assets
Bank deposits
Cash and cash equivalents
Total assets
Liabilities
Loans and borrowings
Tax liabilities
Total liabilities
Other segment information
Additions/transfers between
BUs of non-current assets
Net additions to intangible assets
Depreciation
Amortisation
Write-down to net realisable value
of properties held for sale
Attributable profit before fair value
change and exceptional items(1)
Fair value change
Exceptional items
Attributable profit
433,909
49,915
483,824
304,036
41,367
345,403
130,567
193
130,760
283,047
147,677
430,724
–
(57,486) 1,094,073
239,152
(57,486) 1,333,225
36,205
(335,881)
1,033,549
287,699
246,366
24,251
93,575
100
651,991
–
(6,220)
(156,706)
4,403
–
1,685,540
(158,523)
1,527,017
(341,057)
1,185,960
9,908,526
1,577,775
4,613,463
2,226,560
4,858,236
88,003
4,602,513
765,240
19,552 24,002,290
4,703,979
46,401
266,556
11,178
103
918,411
–
416,135
307,339
230,306
897,031
103,657
1,196,248
60,803
448,743
2,150,002
32,562,065
1,954,468
14,945,700
921,662
17,821,830
323,677
38
(185)
(464)
1,031,165
66
(6,879)
(15)
372,797
3,512
(45,722)
(1,380)
3,416,088
125,522
(1,051)
(404)
3,590
981
(1,929)
(698)
5,147,317
130,119
(55,766)
(2,961)
–
(30,685)
–
–
–
(30,685)
139,848
190,786
–
330,634
98,898
130,199
(1,460)
227,637
(2,428)
9,940
(138,979)
(131,467)
174,775
71,854
4,403
251,032
71,692
100
–
71,792
482,785
402,879
(136,036)
749,628
19_0111_FPL_FR2019_FS_v18.indd 236
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Annual Report 2019 237
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
10.
SEGMENT INFORMATION (CONT’D)
Year ended 30 September 2018 (Restated) (cont’d)
The following table presents financial information regarding geographical segments:
Geographical Segment
Singapore
$'000
Australia
$'000
Europe(2)
$'000
China
$'000
Others(3)
$'000
Group
$'000
Revenue
PBIT
1,431,393
397,659
1,781,546
400,616
608,846
176,214
310,019
219,059
189,068
139,677
4,320,872
1,333,225
Non-current assets
Current assets
Investments in joint ventures and
associates
Tax assets
Bank deposits
Cash and cash equivalents
Total assets
Liabilities
Loans and borrowings
Tax liabilities
Total liabilities
Other segment information
Additions/transfers between
BUs of non-current assets
Net additions to intangible assets
Depreciation
Amortisation
Write-down to net realisable
value of properties held
for sale
Exceptional items
10,553,533 5,379,048
2,231,566
1,644,379
5,296,434
413,620
368,428
322,464
2,404,847 24,002,290
4,703,979
91,950
265,936
11,178
–
193,267
725,867
559,209
312,986
226,745
742,168
113,360
1,196,248
60,803
448,743
2,150,002
32,562,065
1,954,468
14,945,700
921,662
17,821,830
324,682
3,248
(26,626)
(1,253)
137,318
318
(10,937)
(110)
2,767,425
123,760
(16,220)
(1,281)
106,748
218
(51)
(115)
1,811,144
2,575
(1,932)
(202)
5,147,317
130,119
(55,766)
(2,961)
–
–
(30,685)
(218)
–
(157,778)
–
–
–
(527)
(30,685)
(158,523)
(1)
(2)
The attributable profit disclosed includes inter-segment interest income and expense, in order to reflect the cost of financing of the Group’s internal
funds between segments.
Europe – United Kingdom and continental Europe.
(3) Others – Japan, Thailand, New Zealand, Vietnam, the Philippines, Indonesia and Malaysia.
19_0111_FPL_FR2019_FS_v18.indd 237
11/12/19 5:43 PM
238 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
11.
INVESTMENT PROPERTIES
Completed
Investment
Properties
$'000
Investment
Properties
Under
Construction
$'000
Total
Investment
Properties
$'000
Group
Balance Sheet
At 1 October 2017, as reported
Effect of consolidation of MCST 1298 (Note 13)
13,948,240
97,000
1,869,042
–
15,817,282
97,000
At 1 October 2017, as restated
Currency re-alignment
Reclassification to properties held for sale
Reclassification to assets held for sale
Reclassification from property, plant and equipment (Note 12)
Transfer upon completion
Additions
Disposals
Fair value change
Finalisation of Purchase Price Allocation (“PPA”)
Acquisitions of subsidiaries
At 30 September 2018 and 1 October 2018, as restated
Currency re-alignment
Reclassification from properties held for sale
Reclassification from assets held for sale
Transfer upon completion
Additions
Disposals
Fair value change
Acquisitions of subsidiaries
Disposals of subsidiaries
14,045,240
(336,526)
–
(13,357)
88,676
1,818,848
1,062,209
(476,512)
498,112
3,518
3,667,761
20,357,969
(354,140)
–
54,396
408,877
370,853
(660,394)
604,038
3,730,342
(2,010,007)
1,869,042
(7,995)
(113,227)
–
–
(1,818,848)
272,426
–
153,455
–
43,657
398,510
(1,022)
71,271
–
(408,877)
75,744
–
1,736
–
–
15,914,282
(344,521)
(113,227)
(13,357)
88,676
–
1,334,635
(476,512)
651,567
3,518
3,711,418
20,756,479
(355,162)
71,271
54,396
–
446,597
(660,394)
605,774
3,730,342
(2,010,007)
At 30 September 2019
22,501,934
137,362
22,639,296
Company
Balance Sheet
At 1 October 2017
Fair value change
At 30 September 2018 and 1 October 2018
Fair value change
At 30 September 2019
Completed
Investment
Properties
$'000
1,500
100
1,600
550
2,150
19_0111_FPL_FR2019_FS_v18.indd 238
11/12/19 5:43 PM
Annual Report 2019 239
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
11.
INVESTMENT PROPERTIES (CONT’D)
(a)
Completed Investment Properties
Completed investment properties comprise serviced residences, retail, commercial and industrial properties
that are leased mainly to third parties under operating leases (Note 35). Completed investment properties
are stated at fair value which has been determined based on valuations performed by valuers at the
reporting date.
Investment properties amounting to approximately $6,909,447,000 (2018: $4,739,590,000; 1 October
2017: $3,226,318,000) have been mortgaged to certain financial institutions as securities for credit facilities.
Contingent rents, representing income based on sales turnover achieved by tenants, amounted to
$18,474,000 (2018: $15,119,000; 1 October 2017: $13,811,000) for the year.
(b)
Investment Properties under Construction
IPUC are valued annually by valuers by estimating the fair values of the completed investment properties
and then deducting from those amounts the estimated costs to complete the construction and a reasonable
profit margin on construction and development. The estimated cost to complete is determined based on
the construction cost per square metre in the pertinent area.
IPUC amounting to approximately Nil (2018: Nil; 1 October 2017: $1,416,000,000) have been mortgaged to
certain financial institutions as securities for credit facilities.
During the year, net interest expense of $6,248,000 (2018: $32,733,000; 1 October 2017: $97,405,000)
arising from borrowings obtained specifically for the projects was capitalised as cost of IPUC. The borrowing
costs of loans used to finance the projects have been capitalised at interest rates of 2.6% to 4.0% (2018:
between 2.0% and 4.0%; 1 October 2017: between 2.0% and 4.5%) per annum.
19_0111_FPL_FR2019_FS_v18.indd 239
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240 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
12.
PROPERTY, PLANT AND EQUIPMENT
Freehold
Land and
Buildings
$'000
Leasehold
Land and
Buildings
$'000
Assets under
Construction
$'000
Equipment,
Furniture
and Fittings
$'000
Others
$'000
Total
$'000
1,363,457
(53,553)
3,828
15,318
(84)
–
840,785
(11,212)
–
18,917
–
–
47,522
(823)
–
3,426
–
(9,886)
151,959
(7,114)
8,701
45,791
(4,035)
9,886
1,392
(33)
1,475
290
(669)
–
2,405,115
(72,735)
14,004
83,742
(4,788)
–
(90,155)
–
–
(5,777)
–
(95,932)
1,238,811
(38,679)
100,426
–
3,876
(74)
29,507
1,333,867
848,490
(16,393)
51,370
–
6,597
–
–
890,064
40,239
(1,864)
–
–
–
–
(38,375)
–
199,411
(7,218)
44,083
(2,874)
24,651
(4,058)
8,868
262,863
2,455
47
26,181
(13)
115
(242)
–
28,543
2,329,406
(64,107)
222,060
(2,887)
35,239
(4,374)
–
2,515,337
50,320
(2,680)
537
18,431
(13)
41,237
(638)
–
13,839
–
(4,517)
–
62,078
(347)
20,216
–
15,740
28,670
(10)
2
126,349
54,438
(1,299)
9,723
–
14,454
8,560
–
–
85,876
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
71,781
(727)
7,091
23,335
(3,430)
1,053
(27)
992
161
(654)
164,391
(4,072)
8,620
55,766
(4,097)
(2,739)
–
(7,256)
95,311
(3,655)
22,288
(1,669)
26,870
–
(3,728)
(2)
135,415
1,525
36
16,537
(13)
368
–
(220)
–
18,233
213,352
(5,265)
68,764
(1,682)
57,432
37,230
(3,958)
–
365,873
1,207,518
1,176,733
1,313,137
804,188
794,052
799,548
–
40,239
47,522
127,448
104,100
80,178
10,310
930
339
2,149,464
2,116,054
2,240,724
Group
Cost
At 1 October 2017
Currency re-alignment
Acquisitions of subsidiaries
Additions
Disposals/write-offs
Reclassification
Reclassification to investment
properties (Note 11)
At 30 September 2018 and
1 October 2018
Currency re-alignment
Acquisitions of subsidiaries
Disposals of subsidiaries
Additions
Disposals/write-offs
Reclassification
At 30 September 2019
Accumulated Depreciation and
Accumulated Impairment
At 1 October 2017
Currency re-alignment
Acquisitions of subsidiaries
Charge for the year 2018
Disposals/write-offs
Reclassification to investment
properties (Note 11)
At 30 September 2018 and
1 October 2018
Currency re-alignment
Acquisitions of subsidiaries
Disposals of subsidiaries
Charge for the year 2019
Impairment loss (Note 7)
Disposals/write-offs
Reclassification
At 30 September 2019
Net Book Value
At 30 September 2019
At 30 September 2018
At 1 October 2017
19_0111_FPL_FR2019_FS_v18.indd 240
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
12.
PROPERTY, PLANT AND EQUIPMENT (CONT’D)
Company
Cost
At 1 October 2017, 30 September 2018 and 1 October 2018
Additions
At 30 September 2019
Accumulated Depreciation
At 1 October 2017
Charge for the year 2018
At 30 September 2018 and 1 October 2018
Charge for the year 2019
At 30 September 2019
Net Book Value
At 30 September 2019
At 30 September 2018
At 1 October 2017
Annual Report 2019 241
Equipment,
Furniture and
Fittings
$'000
1
26
27
–*
1
1
2
3
24
–
1
The depreciation charge for the year is included in the financial statements as follows:
Group
Company
2019
$'000
2018
$'000
1 October
2017
$'000
2019
$'000
2018
$'000
1 October
2017
$'000
Charged to profit
statement (Note 4)
Capitalised in
properties held for sale
57,428
55,766
56,908
4
57,432
–
55,766
23
56,931
2
–
2
1
–
1
–*
–
–*
Included in property, plant and equipment are certain hotel properties of the Group with carrying amount of
$182,284,000 (2018: $146,294,000; 1 October 2017: $262,762,000) which are pledged to certain financial
institutions to secure credit facilities.
* Denotes amounts less than $1,000.
19_0111_FPL_FR2019_FS_v18.indd 241
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242 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
13.
INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES
Investments in subsidiaries
Shares, at cost
Less: Allowance for impairment
Balances with subsidiaries
Amounts due from subsidiaries:
– Interest-free
– Interest-bearing
Amounts due to subsidiaries:
– Interest-free
Company
Note
2019
$'000
2018
$'000
1 October
2017
$'000
1,265,244
(82,296)
1,182,948
1,274,841
(91,793)
1,183,048
1,880,386
(80,490)
1,799,896
3,508,885
556,211
4,065,096
3,006,675
1,204,663
4,211,338
1,433,489
1,958,699
3,392,188
(227,337)
(227,337)
(341,077)
(341,077)
(195,638)
(195,638)
Net balances with subsidiaries
3,837,759
3,870,261
3,196,550
Amounts due from subsidiaries:
– Current
– Non-Current
Amounts due to subsidiaries:
– Current
– Non-Current
17
17
24
24
282,057
3,783,039
4,065,096
398,968
3,812,370
4,211,338
217,113
3,175,075
3,392,188
(227,199)
(138)
(227,337)
(332,323)
(8,754)
(341,077)
(194,653)
(985)
(195,638)
Net balances with subsidiaries
3,837,759
3,870,261
3,196,550
Amounts due from subsidiaries are non-trade related, unsecured and repayable in cash. In respect of interest-
bearing amounts, interest of between 0.2% to 1.6% (2018: 0.2% to 4.0%; 1 October 2017: 0.2% to 4.0%) per annum
was charged.
Amounts due to subsidiaries are non-trade related, interest-free, unsecured and repayable in cash.
Balances with subsidiaries which are repayable on demand have been classified as current, while balances with no
fixed terms of repayment and not expected to be repaid within the next 12 months have been classified as non-
current. The non-current loans due from subsidiaries form part of the Company’s net investments in subsidiaries
where settlements are neither planned nor likely to occur in the foreseeable future.
Details of significant subsidiaries are included in Note 39.
19_0111_FPL_FR2019_FS_v18.indd 242
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Annual Report 2019 243
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
13.
INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES (CONT’D)
Interest in Subsidiaries with Material NCI
(a)
Determining whether the Group has control over the REITs it manages requires management judgement. In
exercising its judgement, management considers the proportion of its ownership interest and voting rights,
the REIT managers’ decision making authority over the REITs as well as the Group’s overall exposure to
variable returns, both from the REIT managers’ remuneration and their interests in the REITs.
The Group assesses that it controls FCT, FCOT, FHT and FLT (collectively, the “REITs”), although the Group
owns less than half of the ownership interest and voting power of the REITs. The activities are managed
by the Group’s wholly-owned subsidiaries, namely, Frasers Centrepoint Asset Management Ltd. (“FCAM”),
Frasers Commercial Asset Management Ltd. (“FCOAM”), Frasers Hospitality Asset Management Pte. Ltd.
(“FHAM”) and Frasers Logistics & Industrial Asset Management Pte. Ltd. (“FLIAM”), respectively (collectively,
the “REIT Managers”). The REIT Managers have decision-making authority over the REITs, subject to oversight
by the trustees of the respective REITs. The Group’s overall exposure to variable returns, both from the REIT
Managers’ remuneration and the interests in the REITs, is significant and any decisions made by the REIT
Managers affect the Group’s overall exposure.
(b)
The following subsidiaries of the Group have material NCI:
Name of entity
FCT
FCOT
FHT
FLT
Frasers Property (Thailand) Public Company
Limited (formerly known as TICON
Industrial Connection Public Company
Limited) ("FPT")
PGIM Real Estate Asia Retail Fund Limited
Principal place
of business
Ownership
Interest held by NCI
2019
2018
1 October
2017
Singapore
Singapore
Singapore
Singapore
63.6%
74.3%
75.4%
80.8%
58.1%
74.8%
76.4%
79.3%
58.3%
73.2%
77.4%
80.1%
("PGIM ARF")
Singapore
38.6%
–
Thailand
41.4%
35.3%
–
–
19_0111_FPL_FR2019_FS_v18.indd 243
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244 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
13.
INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES (CONT’D)
Interest in Subsidiaries with Material NCI (cont’d)
The following table summarises the financial information of each of the Group’s subsidiaries with material NCI,
based on their respective consolidated financial statements prepared in accordance with SFRS(I), modified for fair
value adjustments on acquisition and differences in the Group’s accounting policies. The information is before
inter-company eliminations with other entities in the Group.
FCT
$'000
FCOT
$'000
FHT
$'000
FLT
$'000
FPT
$'000
PGIM ARF
$'000
196,386
201,093
125,058
148,247
149,805
51,147
230,502
196,088
244,360
154,046
57,257
(1,537)
2019
Revenue
Profit for the year
Total comprehensive
income
200,922
107,483
16,964
81,908
262,536
(22,496)
Other
Subsidiaries
with
Individually
Immaterial
NCI
$'000
Total
$'000
Attributable to NCI
– Profit for the year(2)
– Total comprehensive
127,875
110,207
38,549
158,459
63,826
(593)
5,016
503,339
income
127,577
79,903
12,785
66,191
108,777
(8,677)
8,037
394,593
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Net assets attributable
96,831
16,245
27,319
251,991
3,589,786 2,232,328 2,091,547 3,309,810 3,439,839 3,014,711
(454,149)
(967,034)
2,466,207 1,481,493 1,250,378 2,140,426 1,971,106 1,845,519
(977,175)
(250,203)
(895,537) (1,070,538) (2,085,154)
(216,311)
(561,843)
(364,999)
(774,825)
151,357 1,593,596
(42,463)
to NCI
1,566,135 1,101,363
888,701 1,725,303
849,641
461,954
54,253 6,647,350
Cash flows from/(used in):
– operating activities
– investing activities
– financing activities(1)
Net (decrease)/increase in
cash and cash
equivalents
(1)
Includes dividends paid
130,755
(660,644)
521,128
67,338
(32,421)
(44,628)
108,093
(12,316)
(87,563)
(177,651)
146,586
(278,812)
(999,794)
152,222 1,058,811
31,507
51,946
(293,476)
(8,761)
(9,711)
8,214
19,996
(118,634)
(210,023)
to NCI
67,030
64,276
65,344
95,108
7,960
6,258
(2) Net of distributions to perpetual securities holders borne by non-controlling interests amounting to $3,354,000 (2018: $3,399,000).
19_0111_FPL_FR2019_FS_v18.indd 244
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Annual Report 2019 245
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
13.
INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES (CONT’D)
Interest in Subsidiaries with Material NCI (cont’d)
Other
Subsidiaries
with
Individually
Immaterial
FCT
$'000
FCOT
$'000
FHT
$'000
FLT
$'000
FPT
$'000
NCI
$'000
Total
$'000
193,347
166,820
168,416
133,306
141,718
107,932
155,878
63,508
35,439
199,309
159,433
81,960
41,434
104,435
102,866
96,872
97,799
106,005
80,733
48,507
27,068
126,446
65,002
36,845
36,291
18,258
(8,838)
432,933
298,055
88,937
24,924
36,689
302,649
2,815,448 2,136,391 2,131,118 2,942,989 2,041,836
(426,766)
(96,239)
(713,061)
(486,065)
1,933,756 1,430,831 1,307,224 1,897,788 1,535,185
(279,508)
(627,108)
(258,576)
(900,853)
(64,690)
(677,559)
114,228
2018 (Restated)
Revenue
Profit for the year
Total comprehensive income
Attributable to NCI
– Profit for the year(2)
– Total comprehensive income
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Net assets attributable to NCI
1,121,282 1,070,282
943,708 1,502,076
545,431
50,600 5,233,379
Cash flows from/(used in):
– operating activities
– investing activities
– financing activities(1)
Net increase/(decrease) in cash and
136,873
(11,560)
(116,996)
84,012
(11,331)
(115,363)
112,798
(26,926)
(87,056)
122,390
(484,366)
407,399
84,455
110,185
(128,507)
cash equivalents
8,317
(42,682)
(1,184)
45,423
66,133
Includes dividends paid to NCI
(1)
(2) Net of distributions to perpetual securities holders borne by non-controlling interests amounting to $3,399,000 (2017: $$3,443,000).
73,591
60,365
70,331
65,180
–
Other
Subsidiaries
with
Individually
Immaterial
FCT
$'000
FCOT
$'000
FHT
$'000
FLT
$'000
NCI
$'000
Total
$'000
2017 (Restated)
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
93,381
87,665
17,804
66,233
2,733,061 2,071,277 2,159,948 2,035,785
(48,937)
(630,499)
1,872,203 1,289,349 1,356,090 1,422,582
(202,016)
(676,646)
(224,551)
(645,042)
(158,344)
(738,895)
Net assets attributable to NCI
1,088,376
943,696
993,521 1,132,691
43,308 4,201,592
19_0111_FPL_FR2019_FS_v18.indd 245
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246 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
13.
INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES (CONT’D)
Interest in Subsidiaries with Material NCI (cont’d)
(i)
FCT
Payment of Management Fees/Base Fees Component of Management Fees by Way of Units in FCT
The Group, through its subsidiary, FCAM as the manager of FCT, received the following units in FCT in
payment of 20% to 55% of its management fees for the year from 1 October 2018 to 30 September 2019:
Relevant Period
Date
Received
No. of
Units
Received
Issued
Price
$
Value of
Units
Received
$
Aggregate of
Units held by
FCAM
Aggregate of
Units held by
the Group
1 July 2018 to
30 September 2018
26 October
2018
1 October 2018 to
31 December 2018
24 January
2019
1 January 2019 to
31 March 2019
1 April 2019 to
30 June 2019
26 April
2019
25 July
2019
1,262,515
2.2511
2,842,048
40,024,434
389,695,434
197,675
2.1697
428,895
40,222,109
389,893,109
179,975
2.3285
419,072
40,402,084
390,073,084
513,969
2.5805
1,326,297
40,916,053
390,587,053
5,016,312
The payment of such management fees in the form of units is provided for in the trust deed constituting FCT
dated 5 June 2006, as amended. The issued price is the volume weighted average price of the units traded
on the SGX-ST for the last ten business days of the relevant period.
Payment of Acquisition Fees by Way of Units in FCT
On 16 April 2019, the Group, through FCAM, received 1,445,217 units in FCT at a price of $2.3702 per unit,
in payment of acquisition fee of $3,425,000 in respect of FCT’s acquisition of 90,346 shares in the capital of
PGIM ARF.
On 6 May 2019, the Group, through FCAM, received 141,216 units in FCT at a price of $2.3713 per unit, in
payment of acquisition fee of $335,000 in respect of FCT’s acquisition of 8,804 shares in the capital of PGIM
ARF.
On 17 July 2019, the Group, through FCAM, received 1,819,199 units in FCT at a price of $2.382 per unit,
in payment of acquisition fee of $4,333,000 in respect of FCT’s acquisition of 331/3% interest in Waterway
Point.
On 24 September 2019, the Group, through FCAM, received 332,384 units in FCT at a price of $2.7254 per
unit, in payment of acquisition fees totalling $906,000 in respect of FCT’s acquisitions of an additional 62/3%
interest in Waterway Point and additional 99,150 shares in the capital of PGIM ARF.
19_0111_FPL_FR2019_FS_v18.indd 246
11/12/19 5:43 PM
Annual Report 2019 247
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
13.
INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES (CONT’D)
Interest in Subsidiaries with Material NCI (cont’d)
(i)
FCT (cont’d)
Private Placement
On 28 May 2019, FCT issued 155,181,800 new units at an issue price of $2.382 per unit, amounting to
$369,643,000.
Preferential Offering
On 18 June 2019, FCT issued 28,819,174 new units at an issue price of $2.350 per unit. The Group, through
its subsidiaries, FCAM and Frasers Property Retail Trust Holdings Pte. Ltd. fully subscribed for their allotted
units of 12,141,445 in aggregate, amounting to $28,532,000.
With the above payments of management fees and acquisition fees by way of units in FCT and private
placement and preferential offering by FCT, the Group and FCAM hold an aggregate of 406,466,514 units
and 45,955,713 units in FCT, representing 36.4% and 4.1% of the total issued units in FCT, respectively.
(ii)
FCOT
Payment of Management Fees by Way of Units in FCOT
The Group, through its subsidiary, FCOAM as the manager of FCOT, received the following units in FCOT in
payment of 100% of its management fees for the year from 1 October 2018 to 30 September 2019:
Relevant Period
Date
Received
No. of
Units
Received
Issued
Price
$
Value of
Units
Received
$
Aggregate of
Units held by
FCOAM
Aggregate of
Units held by
the Group
1 July 2018 to
30 September 2018
24 October
2018
1 October 2018 to
31 December 2018
24 January
2019
1 January 2019 to
31 March 2019
1 April 2019 to
30 June 2019
26 April
2019
26 July
2019
3,983,270
1.4371
5,724,357
103,412,688
227,897,667
1,963,005
1.3632
2,675,968
105,375,693
229,860,672
1,817,878
1.4414
2,620,289
107,193,571
231,678,550
1,638,841
1.6220
2,658,200
108,832,412
233,317,391
13,678,814
The payment of such management fees in the form of units is provided for in the trust deed constituting
FCOT dated 12 September 2005, as amended. The issued price is the volume weighted average price of the
units traded on the SGX-ST for the last ten business days of the relevant period.
With the above payments of management fees by way of units in FCOT, the Group and FCOAM hold an
aggregate of 233,317,391 units and 108,832,412 units in FCOT, representing 25.7% and 12.0% of the total
issued units in FCOT, respectively.
19_0111_FPL_FR2019_FS_v18.indd 247
11/12/19 5:43 PM
248 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
13.
INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES (CONT’D)
Interest in Subsidiaries with Material NCI (cont’d)
(iii)
FHT
Payment of Management Fees by Way of Stapled Securities in FHT
The Group, through its subsidiaries, FHAM, FHT Australia Management Pty Ltd, Frasers Hospitality Trust
Management Pte. Ltd., Frasers Hospitality Pte. Ltd. and Frasers Hospitality UK Ltd. as the managers of FHT
(the “FHT managers”), received stapled securities in FHT in payment of 100% of their management fees for
the year from 1 October 2018 to 30 September 2019.
On 5 May 2016, nomination agreements were signed between the FHT managers and Frasers Property
Hospitality Trust Holdings Pte. Ltd. (“FPHTH”) (formerly known as FCL Investments Pte. Ltd.) where the FHT
managers may nominate FPHTH to receive such FHT stapled securities issued to them pursuant to payment
of management fees, in exchange for a cash consideration (“Nomination Agreements”).
FPHTH was nominated to receive all stapled securities in place of the FHT managers during the year:
Relevant Period
Date
Received
No. of
Units
Received
Issued
Price
$
Value of
Units
Received
$
Aggregate
of
Stapled
Securities
held by
the FHT
managers
Aggregate
of
Stapled
Securities
held by
FPHTH
Aggregate
of
Stapled
Securities
held by
the Group
1 April 2018 to
31 October 16,497,854
0.6825 to 11,400,822 31,723,226 426,207,157 457,930,383
30 September 2018
2018
0.6944
1 October 2018 to
31 March 2019
6 May
2019
8,554,301
0.7086 to
0.7310
6,154,030 31,723,226 434,761,458 466,484,684
17,554,852
The payment of such management fees in the form of stapled securities is provided for in the trust deed
constituting FHT dated 12 June 2014. The issued price is the volume weighted average price of the units
traded on the SGX-ST for the last ten business days of the relevant period.
With the above payments of management fees by way of stapled securities in FHT, the Group, FPHTH and
the FHT managers hold an aggregate of 466,484,684 stapled securities, 434,761,458 stapled securities
and 31,723,226 stapled securities in FHT, representing 24.6%, 23.0% and 1.7% of the total issued stapled
securities in FHT, respectively.
19_0111_FPL_FR2019_FS_v18.indd 248
11/12/19 5:43 PM
Annual Report 2019 249
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
13.
INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES (CONT’D)
Interest in Subsidiaries with Material NCI (cont’d)
(iv)
FLT
Payment of Management Fees by Way of Units in FLT
The Group, through its subsidiaries, FLIAM and FLT Australia Management Pty Ltd ("FAMPL"), as the managers
of FLT ("FLT managers"), received units in FLT in payment of 22% to 100% of their management fees.
On 24 October 2016 and 7 November 2016, nomination agreements were signed by Frasers Property
Industrial Trust Holdings Pte. Ltd. (“FPITH”) with FLIAM and FAMPL, respectively, where the FLT managers
may nominate FPITH to receive such units in FLT issued to them pursuant to payment of management fees,
in exchange for a cash consideration.
FPITH was nominated to receive all such units in place of the FLT managers during the year:
Relevant Period
Date
Received
No. of
Units
Received
Issued
Price
$
Value of
Units
Received
$
Aggregate of
Units held by
FLIAM
Aggregate of
Units held by
the Group
1 July 2018 to
30 September 2018
12 November
2018
1 October 2018 to
31 December 2018
31 January
2019
1 January 2019 to
31 March 2019
1 April 2019 to
30 June 2019
6 May
2019
1 August
2019
7,924,256
1.0722
8,496,366 419,072,356 424,552,854
2,163,017
1.0317
2,231,585 421,235,373 426,715,871
2,537,851
1.1570
2,936,295 423,773,224 429,253,722
1,874,608
1.2086
2,265,651 425,647,832 431,128,330
15,929,897
The payment of such management fees in the form of units is provided for in the trust deed constituting FLT
dated 30 November 2015. The issued price is the volume weighted average price of the units traded on the
SGX-ST for the last ten business days of the relevant period.
Payment of Acquisition Fees by Way of Units in FLT
On 12 November 2018, the Group, through FLIAM, received an aggregate of 283,125 units in FLT at a price
of $1.0939, in payment of acquisition fees of $310,000 in respect of FLT’s acquisition of two properties in
Australia.
On 31 January 2019, the Group, through FLIAM, received an aggregate of 192,490 units in FLT at a price
of $1.0325, in payment of acquisition fee of $199,000 in respect of FLT’s acquisition of a property in The
Netherlands.
19_0111_FPL_FR2019_FS_v18.indd 249
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250 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
13.
INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES (CONT’D)
Interest in Subsidiaries with Material NCI (cont’d)
(iv)
FLT (cont’d)
Private Placement
On 8 August 2019, FLT issued 220,000,000 new units at an issue price of $1.173 per unit, amounting to
$258,060,000.
With the above payments of management fees and acquisition fees by way of units in FLT and private
placement by FLT, the Group, FPITH and FLIAM hold an aggregate of 431,603,945 units, 425,647,832 units,
and 5,956,113 units in FLT, representing 19.2%, 18.9% and 0.3% of the total issued units in FLT, respectively.
Consolidation of the Management Corporation Strata Title Plan No. 1298 (“MCST 1298”)
In accordance with SFRS(I) 10 Consolidated Financial Statements, the Group continuously assesses its control over
its investments in non-wholly owned entities. The Group controls an investee when it is exposed, or has rights,
to variable returns from its involvement with the investee and has the ability to affect those returns through its
power over the investee.
Under the terms of a by-law lodged by the MCST 1298 with the Building and Construction Authority of Singapore,
the MCST 1298 confers, at a fee, to Frasers Property Centrepoint Pte. Ltd., a wholly-owned subsidiary of the Group,
the exclusive use and enjoyment of certain parts of common property in the Centrepoint Retail Podium.
Further, the activities of the MCST 1298 are managed by Frasers Property Management Services Pte. Ltd. (the
“Managing Agent”), a wholly-owned subsidiary of the Group.
In determining whether the Group has control over the MCST 1298, management considered the proportion of its
ownership interest and voting rights, and the Managing Agent’s decision-making authority over the MCST 1298,
as well as the Group’s overall exposure to variable returns, both from the Managing Agent’s remuneration and the
Group’s interest in the Centrepoint Retail Podium.
The consolidation of the MCST 1298 is accounted for retrospectively and the quantitative impact is as follows:
Consolidated Balance Sheet
Increase in investment properties
Increase in other current assets
Decrease in trade and other receivables
Increase in cash and cash equivalents
Increase in trade and other payables
Increase in provision for taxation
Increase in loans and borrowings
Increase in retained earnings
Increase in non-controlling interests
30 September
2018
$'000
30 September
2017
$'000
112,000
1
(4,172)
13,554
(2,294)
(1,512)
(19,550)
(92,852)
(5,175)
97,000
104
(2,911)
11,939
(1,447)
(1,926)
(20,000)
(77,595)
(5,164)
19_0111_FPL_FR2019_FS_v18.indd 250
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 251
13.
INVESTMENTS IN AND BALANCES WITH SUBSIDIARIES (CONT’D)
Consolidation of the Management Corporation Strata Title Plan No. 1298 (“MCST 1298”) (cont’d)
Consolidated Profit Statement
Decrease in administrative expenses
Increase in fair value change on investment properties
Increase in non-controlling interests
Increase in profit for the year
14.
INVESTMENTS IN AND BALANCES WITH JOINT VENTURES AND ASSOCIATES
30 September
2018
$'000
168
15,100
(11)
15,257
2019
Note
$'000
Group
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
Company
2019
2018
1 October
2017
$'000
$'000
$'000
Investments in joint ventures
Investments in associates
226,424
271,063
940,656
1,075,915
969,824 1,166,096
2,016,571 1,196,248 1,437,159
500
–
500
Balances with joint ventures
Loans to joint ventures:
– Non-current
– Current
Amounts due from joint
ventures
Loans from joint ventures:
– Non-current
– Current
Amounts due to joint ventures
Balances with associates
Loans to associates:
– Non-current
Amounts due from associates
Loans from an associate:
– Non-current
– Current
Amounts due to associates
17
17
24
24
17
17
24
24
312,053
9,005
291,363
7,866
171,426
162,987
22,342
8,864
15,689
(34,049)
(22,865)
(84,712)
201,774
(9,210)
(16,004)
(7,138)
275,741
–
(54,000)
(5)
296,097
25,134
1,483
14,532
2,532
14,368
–
(475,561)
–
(635)
(449,579)
–
(450,024)
(116)
(433,076)
–
(91,865)
–
(77,497)
–
–
–
–
–
–
–
–
–
–
–
–
–
500
–
500
–
–
139
–
–
–
139
–
–
–
–
–
–
500
–
500
–
–
138
–
–
–
138
–
–
–
–
–
–
19_0111_FPL_FR2019_FS_v18.indd 251
11/12/19 5:43 PM
252 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
14.
INVESTMENTS IN AND BALANCES WITH JOINT VENTURES AND ASSOCIATES (CONT’D)
Excluding a loan to a joint venture of Nil (2018: $1,300,000; 1 October 2017: Nil) which is interest-free, loans to
joint ventures bear interest at 2.4% to 4.4% (2018: 2.4% to 4.7%; 1 October 2017: 1.8% to 4.4%) per annum, are
unsecured, repayable in cash and have no fixed repayment terms. On 2 October 2019, loan to a joint venture of
S$41,724,000 (MYR 126,820,000) was converted to redeemable non-cumulative convertible preference shares.
Excluding loans from joint ventures of $47,654,000 (2018: $16,000,000; 1 October 2017: $54,000,000) which are
interest-free, loans from joint ventures bear interest at 0.5% (2018: 0.5%; 1 October 2017: Nil) per annum, are
unsecured and repayable in cash. The non-current loans from joint ventures are not expected to be repaid within
the next twelve months from 30 September 2019.
Amounts due from and to joint ventures are interest-free, unsecured and repayable in cash on demand.
Excluding a loan to an associate of $14,667,000 (2018: $14,532,000; 1 October 2017: $14,368,000) which is
interest-free, loans to associates bear interest at 4.4% (2018 and 1 October 2017: Nil) per annum, are unsecured,
repayable in cash and have no fixed repayment terms.
Loans from an associate bear interest at 4.8% (2018: 4.4%; 1 October 2017: 4.4%) per annum, are unsecured and
repayable in cash. The non-current loans from an associate are repayable by May 2022.
Amounts due from and to associates are interest-free, unsecured and repayable in cash on demand.
(a)
Acquisition of an Associate and Step-up Acquisition to a Subsidiary
The Group, through its subsidiaries, completed the following acquisitions of shares in the capital of PGIM
ARF (the “PGIM ARF Acquisitions”):
Deemed interest
No. of Consideration
Acquirer
Date acquired
acquired
shares
Frasers Property Investment
(Bermuda) Limited ("FPI Bermuda")
27 March 2019
FCT
FPI Bermuda
FCT
4 April 2019
26 April 2019
26 April 2019
17.8%
17.1%
30.0%
1.7%
94,013
90,346
158,145
8,804
paid
$'000
360,010
345,967
610,486
33,986
Pursuant to the PGIM ARF Acquisitions, the Group’s deemed interest in PGIM ARF was 66.6% and was held
as an associate.
The Group engaged an independent firm to perform PPA for the acquisition of PGIM ARF. Based on the PPA,
part of the consideration paid for the net assets has been identified and allocated to assets held for sale. The
excess of the consideration paid over the fair value of identifiable net assets of $24,447,000 is written off in
net gain/(loss) on acquisitions and disposals of subsidiaries, joint ventures and associates under "Exceptional
Items" in the Group’s profit statement (Note 7).
On 30 June 2019, an aggregate of 58,126 shares in the capital of PGIM ARF were redeemed pursuant
to the bye-laws of PGIM ARF (the “PGIM ARF Redemption”). Following the PGIM ARF Redemption, the
Group’s deemed interest in PGIM ARF increased to 74.9% and with effect from 1 July 2019, PGIM ARF was
consolidated as a subsidiary. Please refer to Note 37(a)(i)(c) for more details.
19_0111_FPL_FR2019_FS_v18.indd 252
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 253
14.
INVESTMENTS IN AND BALANCES WITH JOINT VENTURES AND ASSOCIATES (CONT’D)
(b)
Incorporation of a Joint Venture
On 7 May 2019, FPHT entered into a joint venture agreement with Frasers Assets Co., Ltd. (“FAL”), an indirect
joint venture of the Company, to establish a new joint venture, Frasers Property Management Services
(Thailand) Co., Ltd. (“FPMST”) in Thailand. FPHT and FAL each have an effective shareholding interest of
49.0% and 51.0%, respectively. FPMST is incorporated for the purposes of providing agency services for the
sale of residential units in the One Bangkok Project.
(c)
Dilution of Interest in a Subsidiary to a Joint Venture
On 28 June 2019, the Group, through its wholly-owned subsidiaries, Frasers Property Aquamarine Trustee
Pte. Ltd. and FCL Aquamarine Pte. Ltd., entered into a unit subscription agreement with a long-term
strategic investor (the “Investor”), where new units in Aquamarine Star Trust (“AST”) were issued to the
Investor (“Units Subscription”) for a consideration of $442,706,000.
Pursuant to the Units Subscription, the Group and the Investor each hold 50.0% of the units in issue in AST,
and with effect from 28 June 2019, AST is equity accounted for as a joint venture. The loss on acquisition of
the joint venture of $10,000,000 is included in net gain/(loss) on acquisitions and disposals of subsidiaries,
joint ventures and associates under "Exceptional Items" in the Group's profit statement (Note 7).
(d)
Step-up Acquisition of an Associate to a Subsidiary
On 5 June 2019, FPT launched a voluntary tender offer ("VTO") to acquire up to 100.0% of the issued
securities of Golden Land Property Development Public Company Limited ("GOLD") at THB 8.50 per share.
On 7 August 2019, FPHT tendered all of its 927,642,930 ordinary shares in GOLD ("Golden Land shares"),
representing 39.9% of the share capital of GOLD. The excess of the carrying amount of GOLD as an associate
over the fair value is recognised as a loss on disposal of an associate of S$55,033,000 (THB 1,275,044,000)
and is included in net gain/(loss) on acquisitions and disposals of subsidiaries, joint ventures and associates
under "Exceptional Items" in the Group's profit statement (Note 7).
On 14 August 2019, pursuant to the VTO, a total of 2,195,898,701 Golden Land shares, representing
approximately 94.5% of the share capital of GOLD, have been tendered at an aggregate consideration of
S$839,931,000 (THB 18,655,139,000). The Group’s aggregate deemed interest in Golden Land shares as a
result of the VTO increased from 927,642,930 Golden Land shares, representing 39.9% of the share capital
of GOLD to 2,195,898,701 Golden Land shares, representing 94.5% of the share capital of GOLD. With
effect from 14 August 2019, GOLD was consolidated as a subsidiary. Please refer to Note 37(a)(i)(d) for more
details.
19_0111_FPL_FR2019_FS_v18.indd 253
11/12/19 5:43 PM
254 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
14.
INVESTMENTS IN AND BALANCES WITH JOINT VENTURES AND ASSOCIATES (CONT’D)
(e)
Transfer of Interest in Joint Venture to FCT and Step-up Acquisition of the Joint Venture
On 11 July 2019, FCL Emerald (2) Pte. Ltd., a wholly-owned subsidiary of the Company, transferred its
331/3% interest in a joint venture, Sapphire Star Trust (“SST”) to FCT.
On 18 September 2019, FCT increased its interest in SST from 331/3% to 40.0% at an aggregate consideration
of $29,013,000. The excess of the consideration paid over the fair value of identifiable net assets of $201,000
is written off in net gain/(loss) on acquisitions and disposals of subsidiaries, joint ventures and associates
under “Exceptional Items” in the Group’s profit statement (Note 7).
The transaction costs on the transfer and the step-up acquisition of $1,866,000 are included in net transaction
costs on acquisitions and disposals of subsidiaries, joint ventures and associates under “Exceptional Items”
in the Group’s profit statement (Note 7).
Material Joint Ventures and Associates
Except for GOLD, PGIM ARF, Supreme Asia Investments Limited and its subsidiary (“SAI group”), Frasers
Property Thailand Industrial Freehold & Leasehold REIT (“FTREIT”) and AST, the Group’s joint ventures and
associates are individually immaterial.
The market value of the Group’s interest in FTREIT as at 30 September 2019 is S$491,079,000 (2018:
S$303,585,000; 1 October 2017: Nil).
No disclosure of fair value is made for material joint ventures as they are not quoted on any market.
The following table summaries the financial information of the Group’s material joint venture based on its
consolidated financial statements prepared in accordance with SFRS(I), modified for fair value adjustments
on acquisition and differences in the Group’s accounting policies. The table also analyses, in aggregate, the
carrying amount and share of profit and OCI of the remaining individually immaterial joint ventures, based
on the amounts reported in the Group’s consolidated financial statements.
19_0111_FPL_FR2019_FS_v18.indd 254
11/12/19 5:43 PM
Annual Report 2019 255
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
14.
INVESTMENTS IN AND BALANCES WITH JOINT VENTURES AND ASSOCIATES (CONT’D)
2019
Immaterial
Joint
Ventures
$'000
2018
(Restated)
Immaterial
Joint
Ventures
$'000
1 October
2017
(Restated)
Immaterial
Joint
Ventures
$'000
Total
$'000
Revenue
Profit after taxation
OCI
Total comprehensive income
Attributable to:
– NCI
– Investee's shareholders
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Attributable to:
– NCI
– Investee's shareholders
AST
$'000
16,593
(1,445)
(1,940)
(3,385)
–
(3,385)
34,855
1,977,005
(33,608)
(1,112,870)
865,382
–
865,382
Group's interest in net assets at beginning
of the year, as previously reported
Effect of changes in accounting policies
(Note 40)
Group's interest in net assets at
beginning of the year, as restated
–
–
–
222,729
222,729
265,561
240,213
3,695
3,695
5,502
5,502
226,424
226,424
271,063
245,715
Group's share:
– Profit/(loss) after taxation
– OCI
(723)
(970)
79,490
(1,758)
78,767
(2,728)
84,147
1,954
Total comprehensive income
Currency re-alignment
Additions during the year
Acquisitions of subsidiaries (Note 37(a)(i)(d))
Return of capital during the year
Dilution of interest in a subsidiary to a joint
venture (Note 37(b)(i))
Dividends received during the year
Reclassification to investment in associate
Goodwill written off
(1,693)
–
–
–
–
434,384
–
–
–
77,732
(2,642)
176,016
63,793
(5,281)
–
(27,876)
–
(201)
76,039
(2,642)
176,016
63,793
(5,281)
434,384
(27,876)
–
(201)
86,101
(3,072)
6,288
9,090
(42,969)
–
(91,204)
(8,873)
–
57,508
(968)
56,540
5,925
10,152
–
(1,926)
–
(45,343)
–
–
Carrying amount of interest at end
of the year
432,691
507,965
940,656
226,424
271,063
The following table summarises the financial information of the Group’s material associates based on their respective
consolidated financial statements prepared in accordance with SFRS(I), modified for fair value adjustments on
acquisition and differences in the Group’s accounting policies. The table also analyses, in aggregate, the carrying
amount and share of profit and OCI of the remaining individually immaterial associates, based on the amounts
reported in the Group’s consolidated financial statements.
19_0111_FPL_FR2019_FS_v18.indd 255
11/12/19 5:43 PM
256 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
14.
INVESTMENTS IN AND BALANCES WITH JOINT VENTURES AND ASSOCIATES (CONT’D)
GOLD
$'000
PGIM ARF
$'000
SAI Group
$'000
Immaterial
FTREIT Associates
$'000
$'000
Total
$'000
2019
Revenue
587,660
56,335
664,419
121,162
Profit after taxation
OCI
Total comprehensive income
79,173
–
79,173
119,522
(1,578)
117,944
166,945
–
166,945
80,514
–
80,514
Attributable to:
– NCI
– Investee's shareholders
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Attributable to:
– NCI
– Investee's shareholders
Group's interest in net assets at
beginning of the year, as
previously reported
373,532
Effects of adopting SFRS(I) 9
(Note 40)
–
Group's interest in net assets at
beginning of the year, as
(341)
79,514
–
117,944
6,177
160,768
–
80,514
–
–
–
–
–
–
–
1,714,511
–
247,820
–
– (1,388,838)
–
–
573,493
–
16,858
1,716,141
(72,859)
(422,333)
1,237,807
–
–
–
–
21,644
551,849
–
1,237,807
193,268
276,475
126,549
969,824
(42)
–
–
(42)
restated
373,532
–
193,226
276,475
126,549
969,782
Group's share of:
– Profit after taxation
– OCI
Total comprehensive income
Currency re-alignment
Additions during the year
Acquisitions of subsidiaries
(Note 37(a)(i)(d))
Carrying amount of interest in
an associate acquired as a
subsidiary (Note 37(a)(i))
Dividends received during the year
Goodwill written of
Carrying amount of interest at
end of the year
31,726
–
79,619
(1,051)
75,725
–
31,726
25,350
–
78,568
–
1,350,295
75,725
(8,458)
–
18,799
–
18,799
17,526
–
2,419
–
208,288
(1,051)
2,419
3,720
229,235
207,237
38,138
1,579,530
–
–
(412,200) (1,391,093)
(13,323)
(24,447)
(18,408)
–
–
–
–
–
–
164,770
164,770
–
(18,134)
–
– (1,803,293)
(55,738)
(24,511)
(5,873)
(64)
–
–
260,493
294,666
520,756
1,075,915
19_0111_FPL_FR2019_FS_v18.indd 256
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 257
14.
INVESTMENTS IN AND BALANCES WITH JOINT VENTURES AND ASSOCIATES (CONT’D)
GOLD
$'000
FPT
$'000
SAI group
$'000
Immaterial
FTREIT Associates
$'000
$'000
Total
$'000
2018
Revenue
654,792
61,973
682,019
54,691
Profit after taxation
OCI
Total comprehensive income
122,374
–
122,374
26,864
(1,422)
25,442
145,481
–
145,481
107,541
–
107,541
Attributable to:
– NCI
– Investee's shareholders
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Attributable to:
– NCI
– Investee's shareholders
Group's interest in net assets
at beginning of the year
Group's share of:
– Profit after taxation
– OCI
Total comprehensive income
Currency re-alignment
Additions during the year
Acquisitions of subsidiaries
(Note 37(a)(i)(a))
Dividends received during the year
Reclassification from investment
in joint venture
Carrying amount of interest in an
associate acquired as a
subsidiary (Note 37(a)(i)(a))
Carrying amount of interest at
end of the year
(398)
122,772
166
25,276
5,350
140,131
–
107,541
1,061,531
914,274
(331,923)
(716,442)
927,440
1,685,615
–
100,473
–
– (1,360,539)
–
–
425,549
–
57,611
1,437,300
(71,182)
(269,420)
1,154,309
(8,729)
936,169
–
–
16,226
409,323
–
1,154,309
322,575
561,365
217,118
–
65,038
1,166,096
48,986
–
48,986
11,753
–
10,933
(582)
65,970
–
10,351
19,415
–
65,970
(8,035)
–
25,107
–
25,107
4,319
18,448
4,009
–
155,005
(582)
4,009
1,302
35,059
154,423
28,754
53,507
–
(9,782)
–
(3,170)
–
(81,785)
236,554
(7,953)
15,686
(3,418)
252,240
(106,108)
–
–
–
(587,961)
–
–
–
–
8,873
8,873
–
(587,961)
373,532
–
193,268
276,475
126,549
969,824
19_0111_FPL_FR2019_FS_v18.indd 257
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258 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
14.
INVESTMENTS IN AND BALANCES WITH JOINT VENTURES AND ASSOCIATES (CONT’D)
GOLD
$'000
FPT
$'000
Immaterial
SAI group Associates
$'000
$'000
Total
$'000
1 October 2017
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Attributable to:
– NCI
– Investee's shareholders
Group's interest in net assets
at beginning of the year
Group's share of:
– Profit after taxation
– OCI
Total comprehensive income
Currency re-alignment
Additions during the year
Dividends received during the year
Goodwill
Carrying amount of interest at
end of the year
680,531
835,478
(123,136)
(592,465)
800,408
145,664
1,987,928
(196,227)
(565,445)
1,371,920
1,201,972
166,615
(890,175)
–
478,412
(8,049)
808,457
1,065
1,370,855
18,320
460,092
244,358
–
248,394
60,048
552,800
44,742
–
13,403
(717)
65,749
–
3,827
–
127,721
(717)
44,742
11,330
25,129
(8,701)
5,717
12,686
126
550,094
(2,399)
858
65,749
2,434
–
(99,459)
–
3,827
(1,442)
6,777
(4,172)
–
127,004
12,448
582,000
(114,731)
6,575
322,575
561,365
217,118
65,038
1,166,096
19_0111_FPL_FR2019_FS_v18.indd 258
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Annual Report 2019 259
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
15. OTHER NON-CURRENT/CURRENT ASSETS
Group
Company
2019
$'000
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
2019
2018
1 October
2017
$'000
$'000
$'000
Other non-current assets
Available-for-sale equity
investments
– At cost
– Allowance for impairment
–
–
9,630
(1,155)
3,303
(1,155)
–
–
3,303
(1,155)
3,303
(1,155)
Equity investments at FVOCI
90,688
–
14
2,148
–
–
Prepayments
7,225
97,913
5,050
13,525
3,963
6,125
–
2,148
–
2,148
–
2,148
Other current assets
Prepaid land and development
costs
Other prepayments
Inventory
Contract costs
–
54,989
4,771
15,408
75,168
173,081
353
54,661
4,752
16,467
76,233
89,758
76,038
50,321
5,491
37,453
169,303
175,428
–
204
–
–
204
2,352
–
721
–
–
721
2,869
–
153
–
–
153
2,301
Contract costs relate to commission fees paid to property agents for securing sale contracts for the Group’s
development properties. During the year, $12,695,000 (2018: $17,679,000; 1 October 2017: $6,146,000) of
commission fees paid were capitalised as contract costs.
Capitalised commission fees are amortised when the related revenue is recognised. During the year, $13,522,000
(2018: $38,114,000) was amortised. There was no impairment loss in relation to such costs capitalised.
Equity investments designated as at FVOCI
At 1 October 2018, the Group designated the investments shown below as equity investments at FVOCI because
these equity investments represent investments that the Group intends to hold for long-term strategic purpose. In
2018, these investments were classified as available-for-sale.
The following table shows the reconciliation from the opening balances to the ending balances for level 3 fair
values:
At 1 October 2018
Transfer into level 3 under initial application of SFRS(I) 9
Additions
At 30 September 2019
Unquoted equity
investments at
FVOCI
Group
2019
$'000
Company
2019
$'000
–
8,475
82,213
90,688
–
2,148
–
2,148
19_0111_FPL_FR2019_FS_v18.indd 259
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260 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
16.
INTANGIBLE ASSETS
Goodwill
$'000
Brands
$'000
Favourable
Leases
$'000
Management
Contracts
$'000
Software
and Others
$'000
Total
$'000
Group
Cost
At 1 October 2017
Currency re-alignment
Additions
Finalisation of PPA
Acquisitions of subsidiaries
At 30 September 2018 and
1 October 2018
Currency re-alignment
Additions
Finalisation of PPA
(Note 37(a)(i)(b))
Acquisitions of subsidiaries
(Note 37(a))
Disposal of subsidiaries
(Note 37(b))
At 30 September 2019
Accumulated Amortisation
At 1 October 2017
Currency re-alignment
Amortisation (Note 4(c))
Acquisitions of subsidiaries
At 30 September 2018 and
1 October 2018
Currency re-alignment
Amortisation (Note 4(c))
Acquisitions of subsidiaries
(Note 37(a))
Disposal of subsidiaries
(Note 37(b))
At 30 September 2019
Accumulated Impairment
At 1 October 2017
Currency re-alignment
Impairment loss (Note 7)
At 30 September 2018 and
1 October 2018
Currency re-alignment
Impairment loss (Note 7)
At 30 September 2019
Net Book Value
At 30 September 2019
At 30 September 2018
At 1 October 2017
577,451
(30,683)
–
10,917
43,604
137,286
(3,001)
–
–
–
39,250
(858)
–
–
–
601,289
(29,532)
–
134,285
(6,221)
–
38,392
(1,697)
–
(5,736)
73
–
–
–
–
–
–
–
–
68,069
68,069
4,516
–
–
–
16,601
(31)
5,696
–
1,833
770,588
(34,573)
5,696
10,917
113,506
24,099
(26)
6,431
866,134
(32,960)
6,431
–
(5,736)
4,140
4,213
–
566,094
–
128,064
–
36,695
–
72,585
(175)
34,469
(175)
837,907
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(758)
52,048
–
(1,517)
104,275
2,015
(57)
872
–
2,830
(69)
839
–
–
3,600
–
–
–
51,290
(2,376)
–
48,914
102,758
(5,474)
30,780
128,064
–
(785)
33,880
33,095
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5,433
(11)
2,089
1,167
7,448
(68)
2,961
1,167
8,678
(414)
2,834
11,508
(483)
3,673
1,930
1,930
(35)
12,993
(35)
16,593
–
–
–
–
–
–
–
–
(2,275)
156,323
154,048
(8,635)
64,660
210,073
517,180
549,999
577,451
–
31,527
137,286
–
35,562
37,235
72,585
68,069
–
21,476
15,421
11,168
611,241
700,578
763,140
19_0111_FPL_FR2019_FS_v18.indd 260
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Annual Report 2019 261
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
16.
INTANGIBLE ASSETS (CONT’D)
(a)
Goodwill
The Group’s goodwill is denominated in the respective functional currencies of the acquired subsidiaries
and is subject to currency fluctuations.
The carrying value was assessed for impairment based on CGUs during the financial year.
Carrying value of capitalised goodwill
in the following operating segments:
– Australia SBU
– Singapore SBU
– Hospitality SBU
– Europe and rest of Asia
(i)
Australia SBU
2019
$'000
2018
$'000
1 October
2017
$'000
354,965
62,601
–
99,614
517,180
376,743
62,601
–
110,655
549,999
405,653
62,601
52,436
56,761
577,451
The Group recorded the goodwill upon the acquisition of Frasers Property AHL Limited (“FPA”). For
the purposes of impairment assessment, the carrying amount of goodwill is allocated to the total
assets of the commercial and industrial and the residential divisions.
The recoverable amount of the CGU of FPA is estimated based on value in use calculations using a
projection of earnings before interest and taxation and changes in capital requirements over a five-
year period. The pre-tax discount applied to the projections is 9.4% (2018: 7.9%) and the terminal
growth rate used beyond the five-year period is 2.0% (2018: 2.0%). Management believes the
assumptions applied are appropriate and sustainable considering current and anticipated business
conditions.
The recoverable amount yields sufficient head room at the reporting date which indicates no
impairment required.
As at 30 September 2019, the carrying value of goodwill is Australian Dollar (“A$”) A$381,396,000
(2018: A$381,396,000; 1 October 2017: A$381,396,000).
19_0111_FPL_FR2019_FS_v18.indd 261
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262 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
16.
INTANGIBLE ASSETS (CONT’D)
(a)
Goodwill (cont’d)
(ii)
Singapore SBU
The Group recorded the goodwill upon the acquisition of FCOT and FCOAM. For the purposes of
impairment testing, the goodwill is allocated to FCOAM which holds the management contracts for
FCOT.
The recoverable amount has been determined based on value in use calculations using a projection
of the net management fee income covering a 10-year period. The pre-tax discount rate applied to
the projections is 11.9% (2018: 12.0%; 1 October 2017: 11.9%) and the forecast growth rate used
beyond the 10-year period is 2.0% (2018: 2.0%; 1 October 2017: 2.0%). Based on the recoverable
amount, no impairment is necessary.
As at 30 September 2019, the carrying value of goodwill is S$62,601,000 (2018: S$62,601,000;
1 October 2017: S$62,601,000).
(iii)
Europe and rest of Asia
The Group recorded the goodwill upon the acquisitions of Geneba Properties N.V. (the “Geneba
Acquisition”) and Alpha Industrial GmbH & Co. KG. and Alpha Industrial Management GmbH (the
“Alpha Acquisition”).
The goodwill arising from the Geneba and Alpha Acquisitions are aggregated as a single CGU as the
CGU is managed by the same asset management team. The recoverable amount is estimated based
on value in use calculations using a projection of the net management fee income over a 10-year
period. The pre-tax discount rate applied to the projections is 4.5% (2018: 6.3%) and the terminal
growth rate used beyond the 10-year period is 6.6% (2018: 1.8%). Based on the recoverable amount,
no impairment is necessary.
As at 30 September 2019, the carrying value of goodwill is EUR 65,978,000 (2018: EUR 69,752,000,
1 October 2017: EUR 35,385,000).
(b)
Brands
Brands relate to the “Malmaison” and “Hotel du Vin” brand names that the Group acquired. As the brands
are determined to have indefinite useful lives, no amortisation has been charged for the year.
The recoverable amount is estimated by discounting the projected cash flows over five years to be generated
from continuing use. Cash flows beyond this period are extrapolated using the estimated terminal growth
rates of 2.0% (2018: 2.0%; 1 October 2017: 2.0% to 2.5%), which are within management’s expectation of
the long term average growth rates of the cities in which MHDV Holdings (UK) Limited (“MHDV”) operates.
The projected cash flows are discounted at the rate of 8.6% (2018: 9.0%; 1 October 2017: 8.2%).
Based on the recoverable amount, impairment losses of $30,780,000 (2018: $104,275,000; 1 October
2017: Nil) are included within “Exceptional Items” in the Group’s profit statement.
As at 30 September 2019, the MHDV brands are fully impaired.
19_0111_FPL_FR2019_FS_v18.indd 262
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Annual Report 2019 263
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
16.
INTANGIBLE ASSETS (CONT’D)
(c)
Favourable Leases
Favourable leases relate to certain Malmaison hotels. Amortisation of $839,000 (2018: $872,000; 1 October
2017: $854,000) was charged to the Group’s profit statement.
The methodology and key assumptions used in the estimation of the recoverable amount are set out in
Note 16(b).
Based on the recoverable amount, impairment losses of $33,880,000 (2018: Nil; 1 October 2017: Nil) are
included within “Exceptional Items” in the Group’s profit statement.
As at 30 September 2019, the favourable leases are fully impaired.
(d) Management Contracts
Management contracts relate to fair values of management contracts held by certain acquired subsidiaries
prior to the acquisitions of the subsidiaries by the Group.
Management contracts of S$72,585,000 (THB 1,613,000,000) (2018: S$68,069,000 (THB 1,613,000,000))
are assessed to have indefinite useful lives and not amortised. Management is of the view that these
contracts have indefinite useful lives as contracts are automatically renewed every five years and are
expected to continue into perpetuity.
The recoverable amount of the management contracts has been determined based on value in use
calculations using a projection of the net management fee income covering a five-year period. Cash flows
beyond this period are extrapolated using the estimated terminal growth rate of 3.0% (2018: 0.0%). The
pre-tax discount rate applied to the projections is 8.4% (2018: 14.4%). Based on the recoverable amount, no
impairment is necessary.
19_0111_FPL_FR2019_FS_v18.indd 263
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264 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
17.
TRADE AND OTHER RECEIVABLES
2019
Note
$'000
Group
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
Company
2019
2018
1 October
2017
$'000
$'000
$'000
Other receivables
(non-current)
Amounts due from
subsidiaries
Loans to joint ventures
Loans to associates
Loan to a non-controlling
interest
Receivables from joint
development agreements
Finance lease receivables
Tax recoverable
Sundry debtors
Trade receivables (current)
Trade receivables
Other receivables (current)
Tax recoverable
Accrued interest income
Staff loans and advances
Other deposits
Finance lease receivables
Receivables from joint
development agreements
Receivable from divestment
of an investment property
Recoverable development
costs
Amounts due from
subsidiaries
Amounts due from related
companies
Amounts due from associates
Loans to joint ventures
Amounts due from joint
ventures
Loans to a non-controlling
interest
Sundry debtors
Total trade and other
receivables (current)
Total trade and other
receivables (current
and non-current)
13
14
14
–
312,053
25,134
–
291,363
14,532
– 3,783,039 3,812,370 3,175,075
–
–
–
–
–
–
171,426
14,368
33,220
–
–
–
–
–
57,784
11,976
34,350
15,953
490,470
59,732
11,946
–
8,251
385,824
48,483
–
–
4,415
–
–
–
–
238,692 3,783,039 3,812,370 3,175,075
–
–
–
–
–
–
–
–
87,139
79,164
117,183
–
–
–
116,356
8,302
1,511
43,924
763
124,546
6,202
399
39,102
–
17,068
1,573
483
36,578
–
90,605
8,107
26,943
39,800
–
–
11,957
19,290
19,153
1,050
–
–
–
–
–
–
–
2,085
–
–
–
–
–
–
–
1,128
–
–
–
–
–
–
–
–
–
–
282,057
398,968
217,113
6,950
1,483
9,005
8,692
2,532
7,866
1,782
–
162,987
881
–
–
1,091
–
–
1,092
–
–
22,342
8,864
15,689
–
139
138
–
88,679
441,677
21,208
55,902
302,710
7,450
48,763
338,469
–
1
283,989
–
9
402,292
–
112
219,583
13
14
14
14
528,816
381,874
455,652
283,989
402,292
219,583
1,019,286
767,698
694,344 4,067,028 4,214,662 3,394,658
19_0111_FPL_FR2019_FS_v18.indd 264
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Annual Report 2019 265
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
17.
TRADE AND OTHER RECEIVABLES (CONT’D)
Trade Receivables
Trade receivables comprise mainly rental receivables, are non-interest bearing and are recognised at their original
invoiced amounts which represent their fair values on initial recognition.
Receivables from Joint Development Agreements
The timing of expected receipts of cash flows associated with current and non-current receivables from joint
development agreements are based on cash flow forecasts carried out in conjunction with detailed reviews of the
project feasibility studies.
Amounts due from Related Companies
Amounts due from related companies are non-trade related, interest-free, unsecured and repayable in cash on
demand.
Loan to a Non-Controlling Interest
The loan to a non-controlling interest is non-trade related, bears interest at a fixed rate of 6.0% (2018: 6.0%;
1 October 2017: 6.0%) per annum and is unsecured. The non-current loan to a non-controlling interest is not
expected to be repaid within the next 12 months.
(a)
Trade Receivables that are Impaired
The Group’s trade receivables that are impaired at the reporting date and the movements of the allowance
account used to record the impairment are as follows:
Group
Lifetime ECL
2019
$'000
Collectively Impaired
1 October
2017
$'000
2018
$'000
Individually Impaired
2019
$'000
2018
$'000
1 October
2017
$'000
Trade receivables – nominal
amounts
Allowance for impairment
23,347
(3,202)
20,145
4,813
(2,190)
2,623
5,703
(2,503)
3,200
4,189
(4,189)
–
3,711
(3,711)
–
3,395
(3,395)
–
19_0111_FPL_FR2019_FS_v18.indd 265
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266 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
17.
TRADE AND OTHER RECEIVABLES (CONT’D)
(a)
Trade Receivables that are Impaired (cont’d)
Movements in allowance account
At 1 October 2017 per FRS 39
Currency re-alignment
Allowance for the year (Note 4(a))
Write-back of allowance (Note 4(a))
Bad debt written off
Acquisitions of subsidiaries
At 30 September 2018 per FRS 39
At 1 October 2018 per FRS 39
Effects of adopting SFRS(I) 9 (Note 40)
At 1 October 2018 per SFRS(I) 9
Currency re-alignment
Allowance for the year (Note 4(a))
Write-back of allowance (Note 4(a))
Bad debt written off
Acquisitions of subsidiaries
At 30 September 2019 per SFRS(I) 9
Group
Collectively
Impaired
$'000
Individually
Impaired
$'000
2,503
(152)
206
(367)
–
–
2,190
3,395
(38)
1,756
(1,692)
(531)
821
3,711
Lifetime
ECL
$'000
Individually
Impaired
$'000
2,190
317
2,507
(235)
1,020
(224)
–
134
3,202
3,711
22
3,733
19
2,693
(2,085)
(171)
–
4,189
Trade and other receivables that are individually determined to be impaired at the reporting date relate to
debtors that are in significant financial difficulties and have defaulted on payments. These receivables are
not secured by any collateral or credit enhancements.
Based on the Group’s historical experience in the collection of receivables, management believes that no
additional credit risk beyond that provided for is inherent in the Group’s trade and other receivables.
The Group and the Company’s exposure to credit on trade and other receivables are disclosed in Note 32(a).
19_0111_FPL_FR2019_FS_v18.indd 266
11/12/19 5:43 PM
Annual Report 2019 267
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
18.
DEFERRED TAX ASSETS AND LIABILITIES
(a)
The deferred tax assets and liabilities prior to offsetting of balances within the same jurisdiction were as
follows:
Balance Sheet
2019
$'000
2018
(Restated)
$'000
Group
1 October
2017
(Restated)
$'000
(Charged)/credited to
Profit Statement
2019
$'000
2018
(Restated)
$'000
11,891
119,440
14,722
47,037
7,350
200,440
13,738
89,967
14,335
76,443
12,122
206,605
7,967
93,015
7,300
106,901
2,501
217,684
(445,537)
(89,025)
(112,783)
(85,026)
(732,371)
(424,760)
(157,444)
(73,868)
(26,119)
(682,191)
(277,769)
(153,638)
(42,056)
(47,293)
(520,756)
(2,158)
24,314
14
(13,869)
(4,087)
4,214
(54,304)
52,440
(20,652)
(3,853)
(26,369)
(5,898)
19,841
(15)
125
(26)
14,027
(25,379)
(6,379)
(12,885)
3,420
(41,223)
Deferred tax assets
Fair value adjustments
Provisions and accruals
Employee benefits
Unabsorbed losses and
capital allowances
Others
Gross deferred tax assets
Deferred tax liabilities
Fair value adjustments
Provisions and accruals
Differences in depreciation
Others
Gross deferred tax liabilities
(b)
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when the deferred taxes relate to the same tax jurisdiction. The
amounts, determined after appropriate offsetting, are shown on the balance sheet.
Deferred tax assets
Deferred tax liabilities
Group
2019
$'000
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
62,864
(594,795)
(531,931)
60,803
(536,389)
(475,586)
34,842
(337,914)
(303,072)
(c)
As at 30 September 2019, certain subsidiaries have unutilised tax losses of approximately $221,958,000
(2018: $229,756,000; 1 October 2017: $173,337,000) and unabsorbed capital allowances of $56,939,000
(2018: $70,980,000; 1 October 2017: $192,251,000) available for set off against future taxable profits.
Deferred tax assets of $59,061,000 (2018: $63,767,000; 1 October 2017: $73,061,000) in respect of these
losses and capital allowances have not been recognised due to uncertainty of their recoverability. The
utilisation of tax losses and capital allowances is subject to the agreement of the respective tax authorities
and compliance with certain provisions of the tax legislations of the respective jurisdictions in which the
Group operates. Tax losses amounting to $31,662,000 (2018: $60,624,000; 1 October 2017: $10,746,000)
can be carried forward up to a certain prescribed period, while the remaining tax losses have no expiry
dates.
19_0111_FPL_FR2019_FS_v18.indd 267
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268 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
19.
PROPERTIES HELD FOR SALE
Development properties held for sale
Properties under development, for which
revenue is to be recognised over time
Allowance for foreseeable losses
Properties under development, for which
revenue is to be recognised at a
point in time
Allowance for foreseeable losses
Completed properties held for sale
Completed units, at cost
Allowance for foreseeable losses
Group
2019
$'000
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
1,051,939
(39,000)
1,012,939
1,069,242
–
1,069,242
266,817
–
266,817
3,486,738
(122,096)
3,364,642
2,317,792
(86,167)
2,231,625
2,631,655
(87,227)
2,544,428
650,652
(59,806)
590,846
617,915
(64,957)
552,958
592,334
(50,860)
541,474
Total properties held for sale
4,968,427
3,853,825
3,352,719
Movements in allowance for foreseeable losses are as follows:
Development properties held for sale
At 1 October
Charge for the year
Utilised during the year
Currency re-alignment
At 30 September
Completed properties held for sale
At 1 October
Charge for the year
Utilised during the year
Currency re-alignment
At 30 September
Group
2019
$'000
2018
$'000
(86,167)
(93,516)
12,405
6,182
(161,096)
(64,957)
(436)
2,687
2,900
(59,806)
(87,227)
(13,337)
8,799
5,598
(86,167)
(50,860)
(17,348)
480
2,771
(64,957)
19_0111_FPL_FR2019_FS_v18.indd 268
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Annual Report 2019 269
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
19.
PROPERTIES HELD FOR SALE (CONT’D)
(a)
The Group adopts the percentage of completion method of revenue recognition for residential projects
under progressive payment scheme in Singapore. The stage of completion is measured in accordance with
the accounting policy stated in Note 2.18. Significant assumptions are required in determining the total
estimated development costs. In making the assumptions, the Group evaluates them by relying on past
experience and the work of specialists.
The Group makes allowance for foreseeable losses by applying its experience in estimating the net realisable
values of completed units and properties under development. References were made to comparable
properties, timing of sale launches, location of property, management’s expected net selling prices and
estimated development expenditure. Market conditions may, however, change which may affect the future
selling prices of the remaining unsold units of the development properties and accordingly, the carrying
value of development properties for sale may have to be written down in future periods.
(b)
During the year, net interest expense of $46,129,000 (2018: $79,206,000; 1 October 2017: $32,981,000)
arising from borrowings obtained specifically for the projects was capitalised as cost of development
properties held for sale.
The borrowing costs of loans used to finance the projects have been capitalised at interest rates of between
2.7% and 4.0% (2018: 2.1% and 4.4%; 1 October 2017: 2.0% and 4.4%) per annum.
(c)
(d)
(e)
Included in development properties held for sale are projects of approximately $326,587,000 (2018:
$852,036,000; 1 October 2017: $1,254,144,000) which are expected to be completed within the next
twelve months.
Certain subsidiaries have granted fixed and floating charges over their properties held for sale totalling
$1,063,064,000 (2018: $1,499,174,000; 1 October 2017: $1,006,636,000) to financial institutions as
securities for credit facilities.
Included in development properties held for sale are capitalised staff costs amounting to $212,000 (2018:
$29,159,000, 2017: $552,000)
19_0111_FPL_FR2019_FS_v18.indd 269
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270 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
20.
CONTRACT ASSETS/LIABILITIES
Contract assets
Contract liabilities
Group
2019
$'000
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
199,420
328,867
367,963
239,241
128,095
150,724
Contract assets relate primarily to the Group’s right to consideration for work completed but not billed at the
reporting date in respect of its property development business and project management contracts, including sales
proceeds and progress billing receivables.
Sales proceeds receivables relate to the balance of sales proceeds from completed properties held for sale which
will be received upon issue of notice of vacant possession, certificate of statutory completion, expiry of defect
liability period and/or title subdivision. Progress billing receivables relate to the outstanding balance of progress
billings which are due after the purchasers receive the notices to make payments. Contract assets are transferred
to trade receivables when the rights become unconditional. This usually occurs when the Group invoices the
customers.
Contract liabilities relate primarily to progress billings issued in excess of the Group’s rights to the consideration.
Contract liabilities are recognised as revenue when the Group fulfils its performance obligation under the contract
with the customer.
Significant changes in the contract assets and the contract liabilities balances during the year are as follows:
Contract assets reclassified to trade receivables
Changes in measurement of progress
Revenue recognised that was included
in the contract liability balance at the
beginning of the year
Increases due to cash received, excluding
amounts recognised as revenue during the year
Group
Contract Assets
2019
$'000
2018
(Restated)
$'000
(292,148)
117,096
(189,436)
428,951
Contract Liabilities
2019
2018
(Restated)
$'000
$'000
–
–
–
–
–
–
–
–
(86,441)
(113,304)
182,434
203,045
19_0111_FPL_FR2019_FS_v18.indd 270
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Annual Report 2019 271
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
21.
DERIVATIVE FINANCIAL INSTRUMENTS
Assets
Cross currency
swaps/cross currency
interest rate swaps
Interest rate swaps
Foreign currency forward
contracts
Comprise:
– Current
– Non-current
Liabilities
Cross currency
swaps/cross currency
interest rate swaps
Interest rate swaps
Foreign currency forward
contracts
Comprise:
– Current
– Non-current
Group
Company
2019
$'000
2018
$'000
1 October
2017
$'000
2019
$'000
2018
$'000
1 October
2017
$'000
106,141
453
6,598
113,192
30,561
82,631
113,192
27,964
7,517
5,076
40,557
10,727
29,830
40,557
1,006
3,273
604
4,883
604
4,279
4,883
28,623
113,974
900
143,497
18,262
26,673
3,202
48,137
39,708
54,401
8,645
102,754
6,480
137,017
143,497
12,194
35,943
48,137
15,051
87,703
102,754
13,186
129
–
13,315
13,186
129
13,315
2,307
5,717
225
8,249
2,278
5,971
8,249
8,626
1,314
–
9,940
1,431
8,509
9,940
5,711
7,692
919
14,322
6,938
7,384
14,322
73
–
90
163
90
73
163
19,867
16,859
2,090
38,816
2,090
36,726
38,816
(a)
Cross Currency Swaps/Cross Currency Interest Rate Swaps
The Group enters into cross currency swaps and cross currency interest rate swaps to hedge its exposure
to interest rate risks associated with movements in interest rates which impact the borrowing costs of the
Group and also to hedge exposure to exchange rate risks on foreign currency borrowings.
The Group and the Company have cross currency swap and cross currency interest rate swap arrangements
in place for the following amounts:
Group
Company
2019
$'000
2018
$'000
1 October
2017
$'000
2019
$'000
2018
$'000
1 October
2017
$'000
Notional amounts
Within one year
Between one to three
years
After three years
424,340
532,806
100,000
109,541
376,786
–
1,337,558
1,670,505
3,432,403
750,583
737,291
2,020,680
799,990
591,310
1,491,300
–
162,873
272,414
108,533
–
485,319
526,730
33,765
560,495
19_0111_FPL_FR2019_FS_v18.indd 271
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272 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
21.
DERIVATIVE FINANCIAL INSTRUMENTS (CONT’D)
(a)
Cross Currency Swaps/Cross Currency Interest Rate Swaps (cont’d)
Cross currency swaps at net carrying asset value of $14,547,000 (2018: net asset of $1,524,000; 1 October
2017: net liability of $6,376,000) are designated as hedging instruments for net investment hedges to hedge
foreign exchange risks arising from the Group’s net investments. There was no ineffectiveness recognised
from these hedges.
Cross currency swaps and cross currency interest rate swaps at net carrying asset value of $37,458,000
(2018: net liability of $3,306,000; 1 October 2017: net liability of $14,379,000) are designated as hedging
instruments for cash flow hedges to hedge interest rate risks arising from variable rate borrowings. There
was no ineffectiveness recognised from these hedges.
(b)
Interest Rate Swaps
Interest rate swaps are used by the Group to hedge exposure to interest rate risks associated with movements
in interest rates on the borrowings of the Group.
The Group and the Company have interest rate swap arrangements in place for the following amounts:
Group
Company
2019
$'000
2018
$'000
1 October
2017
$'000
2019
$'000
2018
$'000
1 October
2017
$'000
Notional amounts
Within one year
Between one to three
years
After three years
1,794,894
1,595,474
647,083
439,680
650,000
–
2,166,163
3,023,700
6,984,757
2,198,235
3,633,555
7,427,264
3,680,193
596,760
4,924,036
127,500
186,904
754,084
521,180
645,755
1,816,935
1,229,140
130,000
1,359,140
As at 30 September 2019, the fixed interest rates of the outstanding interest rate swap contracts ranged
between 0.3% to 3.0% (2018: 0.3% to 3.5%; 1 October 2017: 0.4% to 3.5%) per annum.
Interest rate swaps at net carrying liability value of $110,947,000 (2018: net liability of $15,645,000;
1 October 2017: net liability of $50,133,000) are designated as hedging instruments for cash flow hedges
to hedge interest rate risks arising from variable rate borrowings. There was no ineffectiveness recognised
from these hedges.
(c)
Foreign Currency Forward Contracts
Foreign currency forward contracts are used by the Group to hedge exposure to exchange rate risks on
foreign currency receivables and payables, cash and cash equivalents and borrowings. The carrying amounts
of the foreign currency forward contracts are accounted for at fair value through the profit statement.
The Group and the Company have foreign currency forward contract arrangements in place for the following
amounts:
Group
Company
2019
$'000
2018
$'000
1 October
2017
$'000
2019
$'000
2018
$'000
1 October
2017
$'000
Notional amounts
Within one year
726,302
1,074,101
546,393
151,763
146,271
175,584
19_0111_FPL_FR2019_FS_v18.indd 272
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Annual Report 2019 273
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
21.
DERIVATIVE FINANCIAL INSTRUMENTS (CONT’D)
(c)
Foreign Currency Forward Contracts (cont’d)
A foreign currency forward contract at net carrying liability value of $225,000 (2018: net liability of $906,000;
1 October 2017: net liability of $1,300,000) is designated as hedging instrument for net investment hedge
to hedge foreign exchange risk arising from the Group’s net investment. There was no ineffectiveness
recognised from this hedge.
22.
BANK DEPOSITS AND CASH AND CASH EQUIVALENTS
Group
Company
2019
$'000
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
2019
2018
1 October
2017
$'000
$'000
$'000
462,613
4,410
467,023
448,743
–
448,743
272,205
–
272,205
–
–
–
–
–
–
–
–
–
903,202
2,167,150
798,566
1,247,409
790,986
1,310,683
–
11,454
–
8,514
–
45,432
34,492
8,112
42,604
88,993
15,034
104,027
22,000
25,545
47,545
–
–
–
–
–
–
–
–
–
3,112,956
2,150,002
2,149,214
11,454
8,514
45,432
3,579,979
2,598,745
2,421,419
11,454
8,514
45,432
Bank deposits
Structured deposits
Deposits pledged with banks
Cash and cash equivalents
Fixed deposits
Cash in banks and in hand
Amounts held under
"Project Account
Rules – 1997 Ed"
– Fixed deposits
– Cash in banks
Total cash and cash
equivalents
Total bank deposits and
cash and cash
equivalents
19_0111_FPL_FR2019_FS_v18.indd 273
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274 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
22.
BANK DEPOSITS AND CASH AND CASH EQUIVALENTS (CONT’D)
(a)
Bank deposits comprise the following:
(i)
Chinese Renminbi (“RMB”) structured deposits:
Group
30 September 2019
Principal protected deposits(1)
Linked to United States Dollar (“US$”) LIBOR
– within one year
Linked to A$/US$
– within one year
Total structured deposits
30 September 2018
Principal protected deposits(1)
Linked to US$ LIBOR
– within one year
Total structured deposits
1 October 2017
Principal protected deposits(1)
Linked to US$ LIBOR
– within one year
Linked to US$/S$
– within one year
Total structured deposits
(1)
Principal protected at maturity.
$'000
RMB'000
365,913
1,892,000
96,700
462,613
500,000
2,392,000
448,743
448,743
2,257,260
2,257,260
170,255
835,000
101,950
272,205
500,000
1,335,000
As at 30 September 2019, the interest rates of the RMB structured deposits ranged between 3.5% to
3.8% (2018: 3.3% to 4.1%; 1 October 2017: 3.8% to 4.1%) per annum.
19_0111_FPL_FR2019_FS_v18.indd 274
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Annual Report 2019 275
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
22.
BANK DEPOSITS AND CASH AND CASH EQUIVALENTS (CONT’D)
(a)
Bank deposits comprise the following (cont’d):
(ii)
Deposits pledged with banks consist of:
–
–
–
Interest escrow fixed deposits in relation to conditions under one of the facilities in Note 25 to
set aside 12 months’ interest payments.
Fixed deposits for utilities guarantees.
Deposits pledged for construction loan in Vietnam.
As at 30 September 2019, the interest rates of the deposits pledged with banks ranged between
1.0% to 3.4% (2018 and 2017: not applicable) per annum.
(b)
(c)
(d)
Cash in banks earns interest at floating rates based on daily bank deposit rates. The tenure of short-term
deposits vary between one day and three months depending on the immediate cash requirements of the
Group, and earn interest at the respective short-term deposit rates.
The withdrawals from amounts held under “Project Account Rules – 1997 Ed” are restricted to payments for
development expenditure incurred on properties developed for sale.
For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise the following
at the reporting date:
Fixed deposits and cash in banks and in hand
Bank overdrafts
Cash and cash equivalents in the
consolidated cash flow statement
2019
Note
$'000
Group
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
25
3,112,956
(8,851)
2,150,002
(3,229)
2,149,214
(1,530)
3,104,105
2,146,773
2,147,684
19_0111_FPL_FR2019_FS_v18.indd 275
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276 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
23.
ASSETS/LIABILITIES HELD FOR SALE
Investment properties
Trade and other receivables
Assets held for sale
Trade and other payables
Rental deposits
Liabilities held for sale
Group
2019
$'000
2018
(Restated)
$'000
99,928
184
100,112
432
1,512
1,944
13,357
–
13,357
–
–
–
(a)
(b)
(c)
(d)
(e)
PGIM ARF signed a non-binding letter of offer with a prospective buyer in Malaysia on the sale of 1st Avenue
Mall. Accordingly, the property was classified to asset held for sale as at 30 September 2019. The property
was valued at S$49,738,000 (RM153,000,000) based on the asset sale price less support for capital
expenditure stated in the non-binding letter of offer. The support for capital expenditure is to enable the
prospective buyer to upgrade and enhance the value of certain parts of the property after completion. The
negotiation of the sales and purchase agreement is currently in progress.
In May 2019, independent property agencies were appointed by Australand Cambridge Street Unit Trust,
an indirect wholly-owned subsidiary of the Group, to conduct a marketing exercise for the divestment of 44
Cambridge Street, Rocklea, QLD (“Cambridge Street”). Pursuant to the planned divestment of Cambridge
Street, the property was reclassified to assets held for sale as at 30 September 2019. The property was
stated at fair value based on independent professional valuation.
On 16 May 2019, FLT entered into a sale and purchase agreement with Mack Bros Enterprises Pty Ltd, for the
divestment of the warehouse and hardstand components of 610 Heatherton Road, Clayton South, Victoria,
Australia at a consideration of S$14,283,000 (A$15,000,000). Subsequently, on 31 May 2019, FLT entered
into a sale and purchase agreement with Enjoy Church Inc. for the office and deck car park components of
610 Heatherton Road, Clayton South, Victoria, Australia at a consideration of S$5,142,000 (A$5,400,000).
Accordingly, the property was reclassified to assets held for sale as at 30 September 2019. The property was
valued at S$16,753,000 (A$18,000,000) based on independent professional valuation.
In July 2019, negotiations and exchanges took place between Winnersh Midco S.à.r.l and a prospective
buyer, Arena Business Centres, on the sale of 100 Berkshire Place, Winnersh Triangle. Pursuant to the
planned divestment, the property was reclassified to assets held for sale as at 30 September 2019. The
property was valued at S$19,362,000 (£11,400,000) as stated in the sales and purchase agreement. The
disposal was completed on 1 October 2019.
In 2018, Aviemore Chineham Park No. 1 Limited and Aviemore Chineham Park No. 2 Limited entered
into a sales and purchase agreement for the disposal of Larchwood Development Site at S$13,357,000
(£7,500,000). The property was valued at S$13,357,000 (£7,500,000) as stated in the sales and purchase
agreement. The disposal was completed on 12 October 2018.
19_0111_FPL_FR2019_FS_v18.indd 276
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Annual Report 2019 277
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
24.
TRADE AND OTHER PAYABLES
2019
Note
$'000
Group
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
Company
2019
2018
1 October
2017
$'000
$'000
$'000
Trade payables
654,752
480,485
490,407
Other payables (current)
Amounts due to non-
controlling interests
Interest payable
Accrued operating expenses
and sundry creditors
Land vendor liabilities
Deferred income on land
and building leases
Rental deposits
Deposits
Amounts due to subsidiaries 13
Amounts due to related
companies
Loans from an associate
Amounts due to associates
Loans from joint ventures
Amounts due to joint
ventures
14
14
14
14
Total trade and other payables
2
–
–
1,120
1,083
–
–
–
–
633
71,518
967
55,639
10,181
48,499
478,035
70,092
391,695
47,699
344,453
234,317
21,805
–
9,245
–
9,756
–
14,509
63,747
18,512
–
1,167
–
635
22,865
–
40,520
13,426
–
8,824
450,024
116
16,004
–
39,235
19,122
–
721
91,865
–
54,000
–
–
–
227,199
–
–
–
332,323
–
–
–
194,653
–
–
–
–
–
–
–
–
6
–
–
–
84,712
826,425
7,138
1,032,052
5
842,398
–
249,004
–
341,568
–
204,415
(current)
1,481,177
1,512,537
1,332,805
249,006
342,688
205,498
Other payables (non-current)
Sundry creditors
Land vendor liabilities
Deferred income on land
and building leases
Rental deposits
Amounts due to subsidiaries 13
Amount due to non-
controlling interests
Loans from joint ventures
Loans from an associate
14
14
Total trade and other payables
(current and non-current)
34,932
53,437
325,844
150,916
–
28,954
3,384
–
93,819
–
30,289
2,955
–
57,639
–
24,315
34,049
475,561
1,099,054
19,186
9,210
–
154,553
40,027
–
–
130,910
–
–
–
–
138
–
–
–
138
–
–
–
–
8,754
–
–
–
8,754
–
–
–
–
985
–
–
–
985
2,580,231
1,667,090
1,463,715
249,144
351,442
206,483
19_0111_FPL_FR2019_FS_v18.indd 277
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278 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
24.
TRADE AND OTHER PAYABLES (CONT’D)
Trade Payables
Trade payables are non-interest bearing and are generally settled on 30 to 60 days term.
Amounts due to Non-Controlling Interests
Current amounts due to non-controlling interests are interest-free, non-trade in nature, unsecured and repayable
in cash on demand.
Excluding a non-current amount due to non-controlling interests of $24,315,000 (2018: $14,447,000; 1 October
2017: $35,289,000) which bears interest at 6.5% (2018: at a range between 2.1% and 2.6%; 1 October 2017: at
a range between 1.9% and 2.1%) per annum, non-current amounts due to non-controlling interests are interest-
free, non-trade in nature, unsecured and not expected to be repaid within the next twelve months.
Sundry Creditors
Included in non-current sundry creditors are unfavourable leases of $10,004,000 (2018: $10,864,000; 1 October
2017: $11,491,000) relating to lease liabilities for effects of unfavourable leases recognised on the acquisition of
MHDV and are amortised over the lease terms of the hotel properties.
Amounts due to Related Companies
Amounts due to related companies are interest-free, non-trade related, unsecured and repayable in cash on
demand.
Land Vendor Liabilities
When a subsidiary enters into unconditional contracts with land vendors to purchase properties for future
development that contain deferred payment terms, these liabilities are disclosed at their present value.
The amounts owing to land vendors of $3,291,000 (2018: $51,083,000; 1 October 2017: $210,256,000) are secured
over the properties until the balances of the purchase monies have been paid or settlements of the acquisition
have occurred.
Deferred income on land and building leases
When a subsidiary enters into lease agreements for land and building that contain upfront payment terms, a
deferred income is recognised and amortised over the lease period. Included in the deferred income on land and
building leases are leases that will expire in October 2040.
19_0111_FPL_FR2019_FS_v18.indd 278
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Annual Report 2019 279
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
25.
LOANS AND BORROWINGS
Weighted Average
Effective Interest Rate
2019
2018
1 October
2017
2019
%
%
%
$'000
Group
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
Repayable within one year:
Unsecured
Bank loans
Medium Term Notes
Debentures
Bills of exchange
Other bonds
Bank overdrafts
Secured
Bank loans
Other bonds
Repayable after one year:
Unsecured
Bank loans
Medium Term Notes
Debentures
Other bonds
Secured
Bank loans
Other bonds
1.9
2.6
3.5
2.2
–
–
3.0
2.6
2.5
3.5
3.1
3.5
2.7
4.9
2.3
2.8
3.6
–
1.2
–
2.7
4.9
2.4
3.4
3.3
3.7
2.5
–
2.5
2.5
–
–
–
–
2.5
–
2.3
3.4
–
3.5
2.1
4.9
2,016,687
259,938
310,150
246,393
–
8,851
1,225,430
120,000
67,520
–
28,412
3,229
551,889
60,000
–
–
–
1,530
537,610
110,943
3,490,572
1,166,994
31,358
2,642,943
978,299
–
1,591,718
5,817,539
1,930,911
1,893,219
528,912
5,512,578
2,186,562
1,013,503
498,635
5,370,243
2,086,620
–
526,572
3,703,642
31,104
2,042,181
30,510
13,905,327 12,302,757 10,056,126
3,091,479
–
Total loans and borrowings
17,395,899 14,945,700 11,647,844
(a)
The secured bank loans and other bonds are secured by certain subsidiaries by way of fixed and floating
charges over certain assets and/or freehold and leasehold land and properties as disclosed in Notes 11, 12
and 19.
(b) Maturity of non-current loans and borrowings is as follows:
Between 1 and 2 years
Between 3 and 5 years
After 5 years
At 30 September
Group
2019
$'000
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
2,418,283
9,479,705
2,007,339
2,764,181
2,273,110
6,319,105
8,451,812
972,840
1,577,835
13,905,327 12,302,757 10,056,126
(c)
As at 30 September 2019, the Group and the Company had interest rate swaps in place, which have the
economic effect of converting borrowings from variable rates to fixed rates. The fair values and the terms of
these interest rate swaps are disclosed in Notes 21 and 33.
19_0111_FPL_FR2019_FS_v18.indd 279
11/12/19 5:43 PM
280 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
25.
LOANS AND BORROWINGS (CONT’D)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
FPTPL has a S$3,000,000,000 Multicurrency Medium Term Note Programme and a S$5,000,000,000
Multicurrency Debt Issuance Programme, which are unconditionally and irrevocably guaranteed by the
Company.
The Group, through its subsidiary, FCT, established a S$1,000,000,000 Multicurrency Medium Term Note
and a S$3,000,000,000 Multicurrency Debt Issuance Programme.
The Group, through its subsidiary, FCOT, established a S$1,000,000,000 Multicurrency Medium Term Note
Programme.
The Group, through its subsidiary, FHT, established a S$1,000,000,000 Multicurrency Debt Issuance
Programme.
The Group, through its subsidiary, FLT, established a S$1,000,000,000 Multicurrency Debt Issuance
Programme.
The Group, through its subsidiary, FPHT, established a THB 25 billion debenture programme. The Company
has unconditionally and irrevocably guaranteed the debentures issued under the programme.
The Group, through its subsidiary, FPT established a THB 35 billion debenture programme. All debentures
are unsubordinated and unsecured.
The Group, through its subsidiary, GOLD established a THB 13 billion debenture programme. All debentures
are unsubordinated and unsecured.
Bills of exchange of $111,393,000 (THB 2.5 billion) (2018: Nil; 1 October 2017: Nil) issued by GOLD. The
bills of exchange mature within the next one year, are unsecured and unconditionally and irrevocably
guaranteed by GOLD.
(m)
Bills of exchange of $135,000,000 (THB 3.0 billion) (2018: Nil; 1 October 2017: Nil) issued by FPT. The bills of
exchange mature within the next one year, are unsecured and unconditionally and irrevocably guaranteed
by FPT.
(n)
Included in other bonds are:
Unsecured
(i)
(ii)
Retail bonds of S$499,010,000 (2018: S$498,635,000; 1 October 2017: S$498,261,000) issued by
FPTPL. The bonds mature 7 years from 22 May 2015, are unsecured and are unconditionally and
irrevocably guaranteed by the Company.
Bonds of S$29,902,000 (JPY 2.34 billion) (2018: S$28,412,000 (JPY 2.35 billion); 1 October 2017:
S$28,311,000 (JPY 2.35 billion)) issued by FHT. The Japanese Yen denominated bonds mature three
years from 16 July 2019 and are unsecured.
Secured
(iii)
(iv)
Senior bonds of S$31,104,000 (MYR 94,541,000) (2018: S$31,358,000 (MYR 94,968,000); 1 October
2017: S$30,510,000 (MYR 94,927,000)) issued by FHT. The Malaysian Ringgit denominated bonds
mature five years from 16 July 2019 and are secured by the Westin Kuala Lumpur, Malaysia.
Bonds of $110,943,000 (2018: Nil; 1 October 2017: Nil) issued by PGIM ARF. The Singapore Dollar
denominated bonds mature seven years from 29 April 2013 and are secured by White Sands,
Singapore.
19_0111_FPL_FR2019_FS_v18.indd 280
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 281
25.
LOANS AND BORROWINGS (CONT’D)
Reconciliation of movements of liabilities to cash flows arising from financing activities, is as follows:
Note
At
1 October
2018
(Restated)
$'000
Financing
Cash
Flows
Acquisitions
of
Subsidiaries
Disposal of
Subsidiaries
Interest
Expense
Foreign
Exchange
Movement
At 30
September
2019
Others
Non-cash Changes
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Group
Loans and borrowings
Interest payable
25 14,945,700 1,641,752
(425,507)
24
55,639
2,143,664
–
(1,192,434)
–
–
441,386
(148,405)
–
5,622
–
17,395,899
71,518
Note
At
1 October
2017
(Restated)
$'000
Financing
Cash
Flows
Acquisitions
of
Subsidiaries
Disposal of
Subsidiaries
Interest
Expense
Foreign
Exchange
Movement
Others
Non-cash Changes
$'000
$'000
$'000
$'000
$'000
$'000
At 30
September
2018
(Restated)
$'000
Group
Loans and borrowings
Interest payable
Amounts due to non-
25 11,647,844 1,658,446
(328,741)
24
48,499
1,801,401
–
controlling interests
24
10,181
(9,214)
–
–
–
–
–
335,881
(163,690)
–
1,699
–
14,945,700
55,639
–
–
–
967
19_0111_FPL_FR2019_FS_v18.indd 281
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282 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
26.
SHARE CAPITAL
Group and Company
2019
2018
No. of Shares
$'000
No. of Shares
$'000
Issued and fully paid:
Ordinary Shares
At 1 October
Issued during the year:
– pursuant to the vesting of shares
awarded under the share plans
At 30 September
2,912,026,619
1,784,732
2,905,324,694
1,774,771
7,461,300
2,919,487,919
10,509
1,795,241
6,701,925
2,912,026,619
9,961
1,784,732
The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All shares
carry one vote per share without restriction.
The ordinary shares have no par value.
27. OTHER RESERVES
Group
Company
2019
$'000
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
2019
2018
1 October
2017
$'000
$'000
$'000
Hedging reserve
Foreign currency
(124,788)
(21,191)
(48,005)
translation reserve
(468,289)
(269,930)
–
–
–
–
–
–
–
Share-based
compensation reserve
Dividend reserve
Other reserves
25,787
105,102
56,340
(405,848)
21,718
180,545
43,261
(45,597)
18,494
180,130
32,836
183,455
23,275
105,102
–
128,377
21,718
180,545
–
202,263
18,494
180,130
–
198,624
19_0111_FPL_FR2019_FS_v18.indd 282
11/12/19 5:43 PM
Annual Report 2019 283
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
27. OTHER RESERVES (CONT’D)
The movement of other reserves is as follows:
Foreign
Currency
Translation
Reserve
$'000
Share-based
Compensation
Reserve
$'000
Hedging
Reserve
$'000
Dividend
Reserve
$'000
Other
Reserves
$'000
Total
$'000
(21,191)
(662,792)
21,718
180,545
43,261
(438,459)
–
392,862
–
–
–
392,862
(21,191)
(269,930)
21,718
180,545
43,261
(45,597)
–
–
–
–
(19)
(19)
(21,191)
(269,930)
21,718
180,545
43,242
(45,616)
(100,407)
–
–
(197,329)
(3,177)
(413)
(103,584)
(197,742)
–
–
–
–
–
–
–
–
–
–
–
–
(100,407)
(197,329)
(3,590)
(301,326)
–
–
–
–
–
–
–
–
–
–
–
–
(10,509)
14,578
–
–
–
–
–
(180,545)
105,102
–
–
–
–
–
13,089
(10,509)
14,578
(180,545)
105,102
13,089
4,069
(75,443)
13,089
(58,285)
(13)
(13)
(617)
(617)
–
–
–
–
9
9
(621)
(621)
(124,788)
(468,289)
25,787
105,102
56,340
(405,848)
Group
2019
Closing balance at
30 September 2018, as
previously reported
Effects of changes in
accounting policies
(Note 40)
Closing balance at
30 September 2018,
as restated
Effects of adopting SFRS(I)9
(Note 40)
Opening balance at
1 October 2018,
as restated
Other comprehensive income
Net fair value change of
cash flow hedges
Foreign currency translation
Share of other comprehensive
income of joint ventures
and associates
Other comprehensive
income for the year
Contributions by and
distributions to owners
Ordinary shares issued (Note 26)
Employee share-based expense
Dividend paid (Note 30)
Dividend proposed (Note 30)
Transfer from retained earnings
Total contributions by and
distributions to owners
Changes in ownership
interests in subsidiaries
Change in interests in
subsidiaries without
change in control
Total change in ownership
interests in subsidiaries
Closing balance at
30 September 2019
19_0111_FPL_FR2019_FS_v18.indd 283
11/12/19 5:43 PM
284 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
27. OTHER RESERVES (CONT’D)
Group
2018
Opening balance
at 1 October 2017,
as previously reported
Effects of changes in accounting
policies (Note 40)
Opening balance at
1 October 2017,
as restated
Other comprehensive income
Net fair value change of cash
flow hedges
Foreign currency translation
Share of other comprehensive
income of joint ventures and
associates
Other comprehensive income
Foreign
Currency
Translation
Reserve
$'000
Share-based
Compensation
Reserve
$'000
Hedging
Reserve
$'000
Dividend
Reserve
$'000
Other
Reserves
$'000
Total
$'000
(48,005)
(394,294)
18,494
180,130
32,836
(210,839)
–
394,294
–
–
–
394,294
(48,005)
–
18,494
180,130
32,836
183,455
24,811
–
–
(264,314)
1,954
(727)
–
–
–
–
–
–
–
–
–
–
24,811
(264,314)
145
1,372
145
(238,131)
for the year
26,765
(265,041)
Contributions by and
distributions to owners
Ordinary shares issued (Note 26)
Employee share-based expense
Dividend paid (Note 30)
Dividend proposed (Note 30)
Transfer from retained earnings
Total contributions by and
distributions to owners
Changes in ownership interests in
subsidiaries
Change in interests in subsidiaries
without change in control
Total change in ownership
interests in subsidiaries
Closing balance at
–
–
–
–
–
–
–
–
–
–
–
–
(9,961)
13,185
–
–
–
–
–
(180,130)
180,545
–
–
–
–
–
10,280
(9,961)
13,185
(180,130)
180,545
10,280
3,224
415
10,280
13,919
49
49
(4,889)
(4,889)
–
–
–
–
–
–
(4,840)
(4,840)
30 September 2018
(21,191)
(269,930)
21,718
180,545
43,261
(45,597)
19_0111_FPL_FR2019_FS_v18.indd 284
11/12/19 5:43 PM
Annual Report 2019 285
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
27. OTHER RESERVES (CONT’D)
(a)
Hedging Reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of
hedging instruments related to hedged transactions that have not yet occurred.
(b)
Foreign Currency Translation Reserve
The foreign currency translation reserve represents exchange differences arising from the translation of the
financial statements of foreign operations whose functional currencies are different from that of the Group’s
presentation currency. It is also used to record the effect of hedging net investment in foreign operations
and translating foreign currency loans which form part of the Group’s net investment in foreign operations.
(c)
Share-based Compensation Reserve
The share-based compensation reserve comprises the cumulative value of employee services received for
the issue of the shares under the share plans of the Company and the Group (Note 28).
(d)
Dividend Reserve
Dividend reserve relates to proposed final dividend of 6 cents (2018: 6.2 cents; 1 October 2017: 6.2 cents)
per share (Note 30).
(e)
Other Reserves
Included in other reserves are statutory reserves which relate to appropriation of funds from the net profit
of subsidiaries and associates in China, Thailand and Vietnam, respectively, in accordance with the local
laws.
28.
EQUITY PLANS
(a)
FPL Restricted Share Plan (“RSP”)
The RSP is a share-based incentive plan for senior executives and key senior management, which was
approved by shareholders of the Company at an Extraordinary General Meeting held on 25 October 2013.
Information regarding the RSP are as follows:
(i)
(ii)
Depending on the achievement of pre-determined targets over a two-year period, the final number
of RSP awards could range between 0% to 150% of the initial grant of the RSP awards.
50% of the final RSP awards will vest at the end of the two-year performance period. The balance
will vest equally over the subsequent two years with fulfilment of service requirements.
The expense recognised in the profit statement for awards granted under the RSP during the financial year
is $17,095,000 (2018: $17,411,000).
19_0111_FPL_FR2019_FS_v18.indd 285
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286 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
28.
EQUITY PLANS (CONT’D)
(a)
FPL Restricted Share Plan (“RSP”) (cont’d)
The estimated fair value of each RSP award granted during the year ranges from $1.34 to $1.49 (2018: $1.80
to $1.94). The fair value is determined using Monte Carlo Valuation Model, which involves projection of
future outcomes using statistical distributions of key random variables including share price and volatility
of returns. The inputs to the model used are as follows:
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Expected life (years)
Share price at date of grant ($)
2019
2018
5.08
15.87
1.90 to 1.94
2.04 to 4.04
1.65
3.69
14.87
1.56 to 1.79
2.02 to 4.03
2.09
Cash-settled awards of shares are measured at their current fair values at the balance sheet date.
(b)
FPL Performance Share Plan (“PSP”)
The PSP is a share-based incentive plan for senior executives and key senior management, which was
approved by shareholders of the Company at an Extraordinary General Meeting held on 25 October 2013.
Information regarding the PSP are as follows:
(i)
Depending on the achievement of pre-determined targets over a three-year period, the final number
of PSP awards could range between 0% to 200% of the initial grant of the PSP awards.
(ii)
100% of the final PSP awards will vest at the end of the three-year performance period.
The expense recognised in the profit statement for awards granted under the PSP during the financial year
is $462,000 (2018: $200,000).
The estimated fair value of each PSP award granted during the year is $0.81 (2018: $1.01). The fair value
is determined using Monte Carlo Valuation Model, which involves projection of future outcomes using
statistical distributions of key random variables including share price and volatility of returns. The inputs to
the model used are as follows:
Dividend yield (%)
Expected volatility (%)
Cost of equity (%)
Risk-free interest rate (%)
Expected life (years)
Share price at date of grant ($)
2019
5.08
15.87
7.10
1.92
3.04
1.65
2018
3.69
14.87
6.70
1.69
3.03
2.09
19_0111_FPL_FR2019_FS_v18.indd 286
11/12/19 5:43 PM
Annual Report 2019 287
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
28.
EQUITY PLANS (CONT’D)
RSP and PSP Awards Granted
The sixth grant of RSP and PSP awards (“Year 6”) was made on 19 December 2018. The details of the awards
granted under the RSP and PSP in aggregate as at 30 September 2019 are as follows:
RSP
Awards Grant Date
Year 2
Year 3
Year 4
Year 5
Year 6
19 August 2015
22 December 2015
21 December 2016
22 December 2017
19 December 2018
Balance as at
1 October
2018 or
Grant Date
if Later
Cancelled
Achievement
Factor
Vested
Total Equity-settled Cash-settled
Balance as at
30 September 2019
(10,750)
1,690,800
(77,150)
5,186,850
(344,100)
10,434,065
(348,600)
7,589,424
11,714,800
(557,300)
36,615,939 (1,337,900)
–
–
1,287,035
(69,000)
–
1,218,035
(1,680,050)
(2,584,575)
(5,877,050)
(68,900)
–
(10,210,575)
–
2,525,125
5,499,950
7,102,924
11,157,500
26,285,499
–
1,827,875
3,972,050
4,282,124
7,181,300
17,263,349
–
697,250
1,527,900
2,820,800
3,976,200
9,022,150
The Company decides that share awards granted to employees working in foreign locations will be settled in cash
instead of shares. As such, 155,050 share awards were classified as cash-settled awards during the year and the
fair value was re-measured at the balance sheet date, using a valuation method which involves using the market
share price at balance date and adjusting for projection of future outcomes. The incremental fair value recognised
was $8,000.
PSP
Awards Grant Date
Year 3
Year 4
Year 5
Year 6
22 December 2015
21 December 2016
22 December 2017
19 December 2018
Balance as at
1 October
2018 or
Grant Date
if Later
523,616
219,540
292,000
462,800
1,497,956
Cancelled
Achievement
Factor
Vested
Total Equity-settled Cash-settled
Balance as at
30 September 2019
–
–
–
–
–
(282,816)
–
–
–
(282,816)
(240,800)
–
–
–
(240,800)
–
219,540
292,000
462,800
974,340
–
181,940
292,000
462,800
936,740
–
37,600
–
–
37,600
The details of the awards granted under the RSP and PSP in aggregate as at 30 September 2018 are as follows:
RSP
Awards Grant Date
Year 1
Year 2
Year 3
Year 4
Year 5
3 October 2014
19 August 2015
22 December 2015
21 December 2016
22 December 2017
Balance as at
1 October
2017 or
Grant Date
if Later
Cancelled
Achievement
Factor
Vested
Total Equity-settled Cash-settled
Balance as at
30 September 2018
1,195,225
3,489,875
9,089,771
11,065,760
7,893,100
(4,950)
(73,050)
(253,650)
(631,695)
(303,676)
32,733,731 (1,267,021)
–
–
1,700,229
–
–
1,700,229
(1,190,275)
(1,726,025)
(5,349,500)
–
–
(8,265,800)
–
1,690,800
5,186,850
10,434,065
7,589,424
24,901,139
–
1,318,550
4,014,250
7,266,165
5,045,124
17,644,089
–
372,250
1,172,600
3,167,900
2,544,300
7,257,050
19_0111_FPL_FR2019_FS_v18.indd 287
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288 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
28.
EQUITY PLANS (CONT’D)
RSP and PSP Awards Granted (cont’d)
PSP
Awards Grant Date
Year 2
Year 3
Year 4
Year 5
19 August 2015
22 December 2015
21 December 2016
22 December 2017
Balance as at
1 October
2017 or
Grant Date
if Later
469,059
523,616
219,540
292,000
1,504,215
Cancelled
Achievement
Factor
Vested
Total Equity-settled Cash-settled
Balance as at
30 September 2018
–
–
–
–
–
25,141
–
–
–
25,141
(494,200)
–
–
–
(494,200)
–
523,616
219,540
292,000
1,035,156
–
523,616
219,540
292,000
1,035,156
–
–
–
–
–
(c)
Restricted Unit Plans (“RUP”) and Restricted Stapled Security Plan (“RSSP”) of Subsidiaries
The RUPs for FCAM, FCOAM and FLIAM, and RSSP for FHAM, are unit-based incentive plans for senior
executives and key senior management of the respective subsidiaries. These RUPs and RSSP are approved
by the respective board of directors of the subsidiaries on 8 December 2017.
Information regarding the RUPs and RSSP are as follows:
(i)
(ii)
Depending on the achievement of pre-determined targets over a two-year period, the final number
of RUPs and RSSP awards could range between 0% to 150% of the initial grant of the RUPs and RSSP
awards.
50% of the final RUPs and RSSP awards will vest at the end of the two-year performance period
and the balance will vest equally over the subsequent two years with the fulfilment of service
requirements.
The expense recognised in the profit statement for awards granted under the RUPs and RSSP during the
financial year is $2,205,000 (2018: $674,000).
19_0111_FPL_FR2019_FS_v18.indd 288
11/12/19 5:43 PM
Annual Report 2019 289
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
29.
PERPETUAL SECURITIES
The Group’s perpetual securities comprise perpetual securities issued by its subsidiaries, FPTPL and FHT (the
“Issuers”).
Issue Date
Principal Amount
Issued under FPTPL's S$3,000,000,000 Medium Term
Note Programme:
– 5.00% subordinated perpetual securities
Issued under FHT's S$1,000,000,000 Multicurrency
Debt Issuance Programme:
– 4.45% subordinated perpetual securities
Issued under FPTPL's S$5,000,000,000 Multicurrency
Debt Issuance Programme:
– 3.95% subordinated perpetual securities
– 4.38% subordinated perpetual securities
– 4.98% subordinated perpetual securities
9 March 2015
$700,000,000
12 May 2016
$100,000,000
21 September 2017
3 October 2017
17 January 2018
11 April 2019
30 July 2019
$308,000,000
$42,000,000
$300,000,000
$400,000,000
$200,000,000
The Group, through its wholly-owned subsidiary, FPTPL, issued $400,000,000 and $200,000,000 in aggregate
principal amount of perpetual securities on 11 April 2019 and 30 July 2019, respectively. Issuance costs of
$2,898,000 were recognised in equity as a deduction from proceeds.
On 24 September 2019, FPTPL redeemed and cancelled the $600,000,000 4.88% subordinated perpetual securities.
Distributions are payable semi-annually in arrears. The rates of distribution are subject to revision in accordance
with the terms and conditions of the securities. Subject to such conditions, the Issuers may elect to defer making
distributions on the perpetual securities, and is not subject to any limits as to the number of times a distribution
can be deferred.
As the perpetual securities have no fixed maturity date and the payment of distributions is at the discretion of
the Issuers, the Issuers are considered to have no contractual obligations to repay the principal or to pay any
distributions, and the perpetual securities do not meet the definition for classification as a financial liability under
SFRS(I) 1-32 Financial Instruments. The whole instrument is presented within equity, and distributions are treated
as dividends.
The perpetual securities constitute direct, unconditional, subordinated and unsecured obligations of the Issuers
and shall at all times rank pari passu, without any preference or priority among themselves, and pari passu with
any Parity Obligations (as defined in the Conditions) of the Issuers. The securities may be redeemed at the option of
the Issuers on any distribution payment date as specified in the Conditions and otherwise upon the occurrence of
certain redemption events as specified in the Conditions.
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290 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
30.
DIVIDENDS
Dividends on Ordinary Shares:
Interim paid
2.4 cents (2018: 2.4 cents) per share, tax exempt
Final proposed
3.6 cents (2018: 6.2 cents) per share, tax exempt
Company
2019
$'000
2018
$'000
70,531
70,305
105,102
175,633
180,545
250,850
The final dividends are proposed by the Directors after the reporting date and subject to the approval of shareholders
at the next annual general meeting of the Company.
31.
SIGNIFICANT RELATED PARTY TRANSACTIONS
For the purposes of these financial statements, parties are considered to be related to the Group if the Group has
the direct and indirect ability to control the party, jointly control or exercise significant influence over the party in
making financial and operating decisions, or vice versa, or where the Group and the party are subject to common
control or significant influence. Related parties may be individuals or other entities.
The Group considers the Directors of the Company, and Key Executive Officers comprising the Group CEO, key
management officers of the corporate office and CEOs of the strategic business units, to be key management
personnel in accordance with SFRS(I) 1-24 Related Party Disclosures.
Sale and Purchase of Goods and Services
In addition to those related party information disclosed elsewhere in the financial statements, the following
significant transactions between the Group and related parties took place during the period at terms agreed
between the parties:
Related corporations
Rental and service charge income
Management fee income
Purchase of products and obtaining of services
Joint ventures and associates
Rental and service charge income
Management fee income
Dividend income
Proceeds from the sale of properties
Interest income
Interest expense
Marketing fee income
Accounting and secretarial fees
Directors and key management personnel
Sale of residential properties by subsidiaries
Group
2019
$'000
2018
(Restated)
$'000
(5,133)
(2,804)
4,695
(3,112)
(1,394)
3,926
(7,267)
(29,691)
(83,614)
(154,544)
(8,001)
21,795
(4,256)
(373)
(2,412)
(20,927)
(197,312)
(65,308)
(8,000)
3,396
(10,223)
(407)
(5,288)
–
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Annual Report 2019 291
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT
The Group and the Company are exposed to financial risks arising from its operations and the use of financial
instruments. The key financial risks include credit risk, liquidity risk, interest rate risk and foreign currency risk. The
Group uses financial instruments such as currency forwards, interest rate swaps and cross currency swaps as well
as foreign currency borrowings to hedge certain financial risk exposures.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk
management framework. The Board has established the Risk Committee to strengthen its risk management
processes and framework. The Group has risk management policies and guidelines governing all investments,
which set out its overall business strategies, its tolerance for risk and its general risk management philosophy
and has established processes to monitor and control hedging transactions in a timely and accurate manner. All
investment opportunities are reviewed regularly by the Executive Committee of the Board to ensure that the
Group’s policy guidelines are adhered to.
(a)
Credit Risk
Credit risk is the risk of financial loss that may arise on outstanding financial instruments should a
counterparty default on its obligations.
For trade and other receivables, contract assets and financial assets at amortised cost, the Group has
guidelines governing the process of granting credit as a service or product provider in its respective
segments of business. Trade and other receivables and contract assets relate mainly to the Group’s
customers who bought its residential units and tenants from its commercial, retail and industrial buildings
and serviced residences. Financial assets at amortised cost relate mainly to amounts owing by related
parties. Investments and financial transactions are restricted to counterparties that meet the appropriate
credit criteria.
The principal risk to which the Group and the Company is exposed to in respect of financial guarantee
contracts is credit risk in connection with the guarantee contracts they have issued. To mitigate the risk,
management continually monitors the risk and has established processes including performing credit
evaluations of the parties it is providing the guarantee on behalf of. Guarantees are only given for the
benefit of its subsidiaries and related parties.
As at the reporting date, the Group’s and the Company’s maximum exposure to credit risk in the event that
the counterparties fail to perform their obligations is represented by the carrying amount of each class of
financial assets and contract assets recognised in the balance sheets, including derivatives with positive fair
values.
Impairment on cash and fixed deposits has been measured on the 12-month expected loss basis and reflects
the short maturities of the exposures. The Group and the Company consider that cash and fixed deposits
have low credit risk based on the external credit ratings of the counterparties. The amount of the allowance
on cash and fixed deposits was negligible.
Impairment on other receivables has been measured on the 12-month expected loss basis which reflect the
low credit risk of the exposures. The amount of the allowance on these balances is insignificant.
With respect to derivative financial instruments, credit risk arises from the potential failure of counterparties
to meet their obligations under the contract or arrangement. The Group’s maximum credit risk exposure
for cross currency interest rate swaps, cross currency swaps, foreign currency swap contracts and interest
rate swap contracts are limited to the fair value adjustments of these contracts. It is the Group’s and the
Company’s policy to enter into financial instruments with a diversity of credit worthy counterparties. The
Group and the Company do not expect to incur material credit losses on their financial assets or other
financial instruments.
19_0111_FPL_FR2019_FS_v18.indd 291
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292 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(a)
Credit Risk (cont’d)
As at 30 September 2019, 100% (2018: 100%; 1 October 2017: 100%) of the Company’s receivables are due
from subsidiaries. There is no significant credit risk as these companies are of good credit standing.
Impairment losses on trade receivables recognised in the profit statement were as follows:
Impairment losses on trade receivables arising from
contracts with customers (Note 4(a))
(i)
Trade receivables and contract assets
Group
2019
$'000
2018
$'000
3,713
1,962
The Group has a credit policy in place and the exposure to credit risk is monitored on an ongoing
basis. Credit evaluations are performed on all customers requiring credit over a certain amount. The
Group does not require collateral in respect of these financial assets.
The Group limits its exposure to credit risk from trade receivables by collecting deposits as collateral,
where possible.
In monitoring customer credit risk, the Group considers the trade history of the customers with the
Group, aging profile, maturity and existence of previous financial difficulties.
Trade and other receivables and contract assets are written off when there is no reasonable
expectation of recovery, such as a debtor failing to engage in a repayment plan with the Group. The
Group generally considers a financial asset as in default if the counterparty fails to make contractual
payments within 120 days when they fall due and writes off the financial asset when the Group
assesses that the debtor fails to make contractual payments. Where receivables are written off, the
Group continues to engage in enforcement activity to attempt to recover the receivables due. Where
recoveries are made, these are recognised in profit or loss.
19_0111_FPL_FR2019_FS_v18.indd 292
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Annual Report 2019 293
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(a)
Credit Risk (cont’d)
(ii)
Credit Risk by Operating Segments
There is no concentration of credit risk with respect to the trade receivables of the Group as they
consist of a large number of customers that are geographically dispersed. The Group does not have
any significant credit risk exposure to a single customer or group of customers. The Group generally
holds collateral in the form of bank deposits, bank guarantees or mortgages over assets until
completion.
The credit risk associated with receivables from joint ventures and associates is monitored through
management’s review of project feasibilities and the Group’s ongoing involvement in the operations
of these entities.
The maximum exposure to credit risk for trade receivables at the reporting date by operating
segments is as follows:
Group
Company
2019
$'000
2018
(Restated)
$'000
1 October
2017
(Restated)
$'000
2019
2018
1 October
2017
$'000
$'000
$'000
Singapore SBU
Australia SBU
Hospitality SBU
Europe and rest of
Asia
Corporate and
Others
9,742
13,533
34,640
14,720
14,869
31,284
40,321
30,080
31,756
24,819
14,606
1,553
4,405
87,139
3,685
79,164
13,473
117,183
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(iii)
Financial guarantees
The Company has issued financial guarantees to banks for borrowings of its subsidiaries. These
guarantees are subject to the impairment requirements of SFRS(I) 9. The Company has assessed that
its subsidiaries have strong financial capacity to meet the contractual cash flow obligations in the
near future and hence, does not expect significant credit losses arising from these guarantees.
19_0111_FPL_FR2019_FS_v18.indd 293
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294 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(a)
Credit Risk (cont’d)
(iv)
Expected credit loss assessment for customers as at 1 October 2018 and 30 September 2019
The Group uses an allowance matrix to measure the ECLs of trade receivables from individual
customers, which comprise a large number of small balances.
Loss rates are based on actual credit loss experience over the past 3 years. These rates are adjusted to
reflect differences between economic conditions during the period over which the historic data has
been collected, current conditions and the Group’s view of economic conditions over the expected
lives of the receivables. The Group’s credit risk exposure in relation to trade receivables as at 30
September 2019 is set out in the provision matrix as follows:
Group
1 to 30
days
past due
$'000
31 to 60
days
past due
$'000
61 to 90
days
past due
$'000
More than
90 days
past due
$'000
Current
$'000
Total
$'000
30 September 2019
Expected loss rate
Gross carrying amount
Loss allowance provision
4.3%
62,706
2,680
1.9%
17,830
330
5.2%
2,854
147
9.6%
2,595
248
46.6%
8,545
3,986
7.8%
94,530
7,391
(v) Movements in allowance for impairment in respect of trade receivables and contract assets
The movements in the allowance for impairment in respect of trade receivables during the year are
disclosed in Note 17.
Impairment losses recognised are included in “cost of sales”.
There is no impairment loss on contract assets.
(vi)
Comparative information under FRS 39
The aging of trade receivables that were past due but not impaired for prior years is as follows:
Trade receivables past due:
1 to 30 days
31 to 60 days
61 to 90 days
More than 90 days
Contract assets were neither past due nor impaired.
Group
1 October
2017
$'000
2018
$'000
12,350
3,906
1,445
10,410
28,111
15,735
4,671
1,204
7,483
29,093
19_0111_FPL_FR2019_FS_v18.indd 294
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Annual Report 2019 295
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Liquidity Risk
Liquidity risk is the risk that the Group and Company will encounter difficulty in meeting financial obligations
due to shortage of funds. The Group adopts a prudent approach to managing its liquidity risk. The Group
always maintains sufficient cash and has available funding through a diverse source of credit facilities from
various banks and a related company. Surplus cash from subsidiaries are transferred to the Company in
accordance with its group policy for management of liquidity of the companies in the Group.
The following are the expected contractual undiscounted cash flows of financial liabilities and derivative
financial instruments, including interest payments and excluding the impact of netting agreements:
Contractual Cash Flows
Carrying
amount
$'000
Total
$'000
1 year
or less
$'000
1 to 5
years
$'000
Over 5
years
$'000
Group
30 September 2019
Financial liabilities,
at amortised cost
Loans and borrowings
Trade and other payables#
Derivative financial assets/
(liabilities), at fair value
Interest rate swaps
(net-settled)
Forward foreign exchange
(17,395,899)
(2,172,558)
(19,568,457)
(18,990,300)
(2,241,668)
(21,231,968)
(3,927,444)
(1,441,888)
(5,369,332)
(12,930,389)
(744,501)
(13,674,890)
(2,132,467)
(55,279)
(2,187,746)
(113,521)
(115,411)
(34,034)
(81,024)
(353)
contracts (gross-settled)
5,698
– outflow
– inflow
Cross currency swaps/cross
currency interest rate
swaps (gross-settled)
– outflow
– inflow
(728,306)
733,332
(728,306)
733,332
–
–
–
–
77,518
(3,675,437)
3,752,127
(33,695)
(21,265,663)
(422,279)
458,192
6,905
(5,362,427)
(3,110,202)
3,172,072
(19,154)
(13,694,044)
(142,956)
121,863
(21,446)
(2,209,192)
(30,305)
(19,598,762)
#
Excludes deferred income, provision for employee benefits and advanced rental income received.
19_0111_FPL_FR2019_FS_v18.indd 295
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296 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Liquidity Risk (cont’d)
Contractual Cash Flows
Carrying
amount
$'000
Total
$'000
1 year
or less
$'000
1 to 5
years
$'000
Over 5
years
$'000
(14,945,700)
(1,632,610)
(16,578,310)
(16,540,118)
(1,633,468)
(18,173,586)
(3,035,434)
(1,489,701)
(4,525,135)
(11,812,789)
(119,460)
(11,932,249)
(1,691,895)
(24,307)
(1,716,202)
(19,156)
(19,568)
(25,508)
5,712
228
Group
30 September 2018
(Restated)
Financial liabilities, at
amortised cost
Loans and borrowings
Trade and other payables#
Derivative financial assets/
(liabilities), at fair value
Interest rate swaps
(net-settled)
Forward foreign exchange
contracts (gross-settled)
1,874
(1,076,952)
1,078,763
(1,076,952)
1,078,763
–
–
–
–
9,702
(2,147,723)
2,155,488
(9,992)
(18,183,578)
(559,500)
569,410
(13,787)
(4,538,922)
(1,446,038)
1,460,509
20,183
(11,912,066)
(142,185)
125,569
(16,388)
(1,732,590)
(7,580)
(16,585,890)
(11,647,844)
(1,406,275)
(13,054,119)
(12,759,100)
(1,407,687)
(14,166,787)
(1,878,478)
(1,285,471)
(3,163,949)
(9,752,514)
(104,576)
(9,857,090)
(1,128,108)
(17,640)
(1,145,748)
– outflow
– inflow
Cross currency swaps/cross
currency interest rate
swaps (gross-settled)
– outflow
– inflow
1 October 2017 (Restated)
Financial liabilities,
at amortised cost
Loans and borrowings
Trade and other payables#
Derivative financial assets/
(liabilities), at fair value
Interest rate swaps
(net-settled)
Forward foreign exchange
– outflow
– inflow
Cross currency swaps
(gross-settled)
– outflow
– inflow
(51,128)
(51,874)
(34,896)
(16,978)
contracts (gross-settled)
(8,041)
(546,615)
538,673
(546,615)
538,673
–
–
–
–
–
(38,702)
(97,871)
(13,151,990)
(1,597,563)
1,558,762
(98,617)
(14,265,404)
(120,659)
128,555
(34,942)
(3,198,891)
(1,476,904)
1,430,207
(63,675)
(9,920,765)
–
–
–
(1,145,748)
#
Excludes deferred income, provision for employee benefits and advanced rental income received.
19_0111_FPL_FR2019_FS_v18.indd 296
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Annual Report 2019 297
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Liquidity Risk (cont’d)
The table below indicates the periods in which the cash flows associated with the cash flow hedges are
expected to occur:
1 year or less
1 to 5 years
Over 5 years
Company
30 September 2019
Financial liabilities,
at amortised cost
Trade and other payables
Amounts due to subsidiaries
Recognised liabilities
Corporate guarantees
Derivative financial assets/
(liabilities), at fair value
Interest rate swaps
(net-settled)
Forward foreign exchange
contracts (gross-settled)
– outflow
– inflow
Cross currency swaps
(gross-settled)
– outflow
– inflow
Group
2018
$'000
(20,654)
746
–
(19,908)
1 October
2017
$'000
(37,707)
(27,454)
–
(65,161)
2019
$'000
(15,601)
(59,465)
(353)
(75,419)
Contractual Cash Flows
Carrying
amount
$'000
Total
$'000
1 year
or less
$'000
1 to 5
years
$'000
Over 5
years
$'000
(21,807)
(227,337)
(249,144)
–
(249,144)
(21,807)
(227,337)
(249,144)
(16,143,718)
(16,392,862)
(21,807)
(227,199)
(249,006)
(16,143,718)
(16,392,724)
–
(138)
(138)
–
(138)
(5,588)
(5,663)
(3,008)
(2,655)
(225)
10,879
5,066
(244,078)
(152,232)
151,580
(152,232)
151,580
–
–
(281,528)
292,246
4,403
(16,388,459)
(96,836)
109,502
9,006
(16,383,718)
(184,692)
182,744
(4,603)
(4,741)
–
–
–
–
–
–
–
–
–
–
–
–
19_0111_FPL_FR2019_FS_v18.indd 297
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298 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Liquidity Risk (cont’d)
Company
30 September 2018
Financial liabilities,
at amortised cost
Trade and other payables
Amounts due to subsidiaries
Recognised liabilities
Corporate guarantees
Derivative financial assets/
(liabilities), at fair value
Interest rate swaps (net-settled)
Forward foreign exchange
contracts (gross-settled)
– outflow
– inflow
Cross currency swaps
(gross-settled)
– outflow
– inflow
1 October 2017
Financial liabilities,
at amortised cost
Trade and other payables
Amounts due to subsidiaries
Recognised liabilities
Corporate guarantees
Derivative financial assets/
(liabilities), at fair value
Interest rate swaps (net-settled)
Forward foreign exchange contracts
(gross-settled)
– outflow
– inflow
Cross currency swaps
(gross-settled)
– outflow
– inflow
Contractual Cash Flows
Carrying
amount
$'000
Total
$'000
1 year
or less
$'000
1 to 5
years
$'000
Over 5
years
$'000
(10,365)
(341,077)
(351,442)
–
(351,442)
(10,365)
(341,077)
(351,442)
(15,758,900)
(16,110,342)
(10,365)
(332,323)
(342,688)
(15,758,900)
(16,101,588)
–
(8,754)
(8,754)
–
(8,754)
(6,378)
(6,422)
(5,513)
(909)
(919)
2,915
(146,240)
145,431
(146,240)
145,431
–
–
(484,170)
487,080
(4,321)
(16,114,663)
(382,200)
381,026
(7,496)
(16,109,084)
(101,970)
106,054
3,175
(5,579)
(4,382)
(355,824)
(10,845)
(195,638)
(206,483)
–
(206,483)
(10,845)
(195,638)
(206,483)
(12,923,534)
(13,130,017)
(10,845)
(194,653)
(205,498)
(12,923,534)
(13,129,032)
–
(985)
(985)
–
(985)
(16,859)
(17,026)
(10,030)
(6,996)
(2,000)
(19,794)
(38,653)
(245,136)
(175,687)
173,634
(175,687)
173,634
–
–
(587,334)
567,740
(38,673)
(13,168,690)
(2,588)
10,909
(3,762)
(13,132,794)
(584,746)
556,831
(34,911)
(35,896)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
19_0111_FPL_FR2019_FS_v18.indd 298
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Annual Report 2019 299
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Liquidity Risk (cont’d)
The maturity analyses show the contractual undiscounted cash flows of the Group’s and the Company’s
financial liabilities, on the basis of their earliest possible contractual maturity. The cash inflows/(outflows)
disclosed relate to those instruments held for risk management purposes and which are usually not closed
out prior to contractual maturity. The disclosure shows net cash flow amounts for derivatives that are net
cash-settled and gross cash inflow and outflow amounts for derivatives that have simultaneous gross cash
settlement e.g. forward exchange contracts. Net-settled derivative financial assets are included in the
maturity analyses as they are held to hedge the cash flow variability of the Group’s floating rate loans.
(c)
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the Company’s financial
instruments will fluctuate because of changes in market interest rates. The Group’s and the Company’s
exposure to interest rate risk is in respect of debt obligations and deposits with related companies and
financial institutions.
The Group manages its interest rate exposure by maintaining a mix of fixed and floating rate debts with
varying tenors. The Group adopts a policy of ensuring that between 50% and 80% of its interest rate risk
exposure is at fixed rate. The Group actively reviews its debt portfolio, taking into account the investment
holding period and nature of its assets. To manage this mix in a cost-efficient manner, the Group uses hedging
instruments such as interest rate swaps and cross currency interest rate swaps to minimise its exposure to
interest rate volatility.
The Group determines the existence of an economic relationship between the hedging instrument and
hedged item based on the reference interest rates, tenors, repricing dates and maturities and the notional
or par amounts.
The Group assesses whether the derivative designated in each hedging relationship is expected to be
effective in offsetting changes in cash flows of the hedged item using the critical terms method, dollar
offset method or regression method.
Hedge ineffectiveness may occur due to changes in the critical terms of either the interest rate swaps or
borrowings.
Sensitivity Analysis for Interest Rate Risk
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased)
equity and profit before tax by the amounts shown below. This analysis assumes that all other variables, in
particular foreign currency rates, remain constant.
19_0111_FPL_FR2019_FS_v18.indd 299
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300 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(c)
Interest Rate Risk (cont’d)
Group
30 September 2019
Variable rate instruments not hedged
Interest rate swaps/cross currency swaps/
cross currency interest rate swaps
Cash flow sensitivity (net)
30 September 2018 (Restated)
Variable rate instruments not hedged
Interest rate swaps/cross currency swaps/
cross currency interest rate swaps
Cash flow sensitivity (net)
1 October 2017 (Restated)
Variable rate instruments not hedged
Interest rate swaps/cross currency
swaps
Cash flow sensitivity (net)
(d)
Foreign Currency Risk
Profit before tax
Equity
100 bp
Increase
$'000
100 bp
Decrease
$'000
100 bp
Increase
$'000
100 bp
Decrease
$'000
(51,944)
51,944
–
–
3,220
(48,724)
(3,479)
48,465
136,738
136,738
(141,188)
(141,188)
(32,629)
32,629
–
–
16,749
(15,880)
(13,144)
19,485
168,825
168,825
(136,441)
(136,441)
(38,120)
38,120
–
–
15,317
(22,803)
(15,376)
22,744
89,678
89,678
(93,638)
(93,638)
The purpose of the Group’s and the Company’s foreign currency hedging activities is to protect against
the volatility associated with future cash flow arising from investments in and loans granted to foreign
subsidiaries. The Group and the Company primarily utilise foreign currency forward contracts and cross
currency swaps to hedge foreign currency denominated investments and loans to foreign subsidiaries.
Under this programme, increases or decreases in the Company’s foreign currency denominated investments
and loans are partially offset by gains and losses on the hedging instruments. The Company does not use
foreign currency forward contracts or other hedging instruments for trading purposes.
In addition to transactional exposures, the Group is also exposed to foreign exchange movements on its net
investment in foreign subsidiaries. The Group uses foreign currency borrowings as a natural hedge against
the activities of the foreign subsidiaries, where feasible.
The Group uses forward exchange contracts or foreign currency loans to hedge its foreign currency risk,
where feasible. It generally enters into forward exchange contracts with maturities ranging between three
months and one year which are rolled over at market rates at maturity or foreign currency loans which
match the Group’s highly probable transactions and investment in the foreign subsidiaries. The Group also
enters into cross currency swaps to hedge the foreign exchange risk of its loans denominated in a foreign
currency. The foreign exchange forwards and currency swaps are denominated in the same currency as the
highly probable transactions, therefore the economic relationship is 100% effective.
Hedge ineffectiveness may occur due to:
(i)
(ii)
Changes in timing of the forecasted transaction from what was originally planned; and
Changes in the credit risk of the derivative counterparty or the Group.
19_0111_FPL_FR2019_FS_v18.indd 300
11/12/19 5:43 PM
Annual Report 2019 301
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(d)
Foreign Currency Risk (cont’d)
The Group’s exposure to foreign currencies as at 30 September 2019, 30 September 2018 and 1 October
2017, after taking into account foreign currency forward contracts and cross currency swaps, is as follows:
Singapore
Dollar
$'000
Australian
Dollar
$'000
Sterling
Pound
$'000
United
States
Dollar
$'000
Euro
$'000
Group
30 September 2019
Financial Assets
Trade and other receivables
Cash and cash equivalents
Financial Liabilities
Trade and other payables
Loans and borrowings
Net statement of financial
position exposure
Less:
Foreign currency forward
contracts/cross currency
swaps
Net currency exposure
30 September 2018
Financial Assets
Trade and other receivables
Cash and cash equivalents
Financial Liabilities
Trade and other payables
Loans and borrowings
Net statement of financial
position exposure
Less:
Foreign currency forward
contracts/cross currency
swaps
Net currency exposure
17,895
201,607
22
16,615
26
2,351
950
7,071
144
653
(970)
(68,531)
(292)
(755,366)
(457)
(2,377)
(4,011)
(1,072,369)
(1,002)
(138,498)
150,001
(739,021)
(457)
(1,068,359)
(138,703)
(122,433)
27,568
763,174
24,153
–
(457)
1,083,397
15,038
–
(138,703)
1,511
22,770
16
28,431
21
6,044
21,338
14,994
22,307
1,147
(6,285)
(117,551)
(327)
(68,346)
(4,602)
(84,956)
(6,092)
(1,195,897)
(796)
(53,323)
(99,555)
(40,226)
(83,493)
(1,165,657)
(30,665)
117,548
17,993
68,346
28,120
85,112
1,619
1,195,897
30,240
(22,097)
(52,762)
19_0111_FPL_FR2019_FS_v18.indd 301
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302 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(d)
Foreign Currency Risk (cont’d)
Singapore
Dollar
$'000
Australian
Dollar
$'000
Sterling
Pound
$'000
United
States
Dollar
$'000
Euro
$'000
4,159
37,845
–
31,534
–
1,570
15,784
6,778
7,525
571
(38,249)
(226,569)
(23)
–
(104)
–
(8,731)
(969,210)
(4)
–
(222,814)
31,511
1,466
(955,379)
8,092
226,568
3,754
–
31,511
–
1,466
970,523
15,144
(7,525)
567
Group
1 October 2017
Financial Assets
Trade and other receivables
Cash and cash equivalents
Financial Liabilities
Trade and other payables
Loans and borrowings
Net statement of financial
position exposure
Less:
Foreign currency forward
contracts/cross currency
swaps
Net currency exposure
The Group has the following outstanding foreign currency forward contracts and cross currency swaps to
hedge future receipts of distribution, net of anticipated payments in foreign currencies:
Notional amounts
Singapore Dollar
Australian Dollar
Sterling Pound
Euro
Others
Group
2019
$'000
2018
$'000
–
43,347
2,068
35,454
1,316
82,185
–
8,084
2,168
17,926
1,545
29,723
1 October
2017
$'000
10,743
119,620
6,546
3,609
1,504
142,022
19_0111_FPL_FR2019_FS_v18.indd 302
11/12/19 5:43 PM
Annual Report 2019 303
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(d)
Foreign Currency Risk (cont’d)
The Company’s exposure to foreign currencies as at 30 September 2019, 30 September 2018 and 1 October
2017, after taking into account foreign currency forward contracts, is as follows:
Company
30 September 2019
Financial Assets
Trade and other receivables
Cash and cash equivalents
Currency exposure
30 September 2018
Financial Assets
Trade and other receivables
Cash and cash equivalents
Currency exposure
1 October 2017
Financial Assets
Trade and other receivables
Cash and cash equivalents
Currency exposure
Australian
Dollar
$'000
United States
Dollar
$'000
42,555
91
42,646
68,374
77
68,451
46,495
7,368
53,863
16,120
8
16,128
50,389
2,416
52,805
9,586
2,829
12,415
19_0111_FPL_FR2019_FS_v18.indd 303
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304 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(d)
Foreign Currency Risk (cont’d)
Sensitivity Analysis for Foreign Currency Risk
The following table demonstrates the sensitivity analysis of the Group’s exposure to foreign currency risk
on its financial assets and liabilities as at the end of the financial year by a reasonably possible change in
the S$, A$, British Pound (“GBP”) and US$ against the respective functional currencies of the Group entities,
with all other variables held constant:
Group
Company
Profit before
Taxation
$'000
Equity
$'000
Profit before
Taxation
$'000
Equity
$'000
30 September 2019
S$
– Strengthened 1%
– Weakened 1%
A$
GBP
US$
EUR
– Strengthened 1%
– Weakened 1%
– Strengthened 1%
– Weakened 1%
– Strengthened 1%
– Weakened 1%
– Strengthened 1%
– Weakened 1%
30 September 2018
S$
– Strengthened 1%
– Weakened 1%
A$
GBP
US$
EUR
– Strengthened 1%
– Weakened 1%
– Strengthened 1%
– Weakened 1%
– Strengthened 1%
– Weakened 1%
– Strengthened 1%
– Weakened 1%
276
(276)
242
(242)
(5)
5
150
(150)
–
–
990
(990)
2,378
(2,378)
–
–
(1,387)
1,387
3,276
(3,276)
180
(180)
281
(281)
16
(16)
302
(302)
(528)
528
–
–
1,034
(1,034)
2,480
(2,480)
–
–
280
(371)
–
–
426
(426)
–
–
684
(684)
–
–
–
–
539
(539)
–
–
161
(161)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
19_0111_FPL_FR2019_FS_v18.indd 304
11/12/19 5:43 PM
Annual Report 2019 305
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
32.
FINANCIAL RISK MANAGEMENT (CONT’D)
(d)
Foreign Currency Risk (cont’d)
Sensitivity Analysis for Foreign Currency Risk (cont’d)
Group
Company
Profit before
Taxation
$'000
Equity
$'000
Profit before
Taxation
$'000
Equity
$'000
38
(38)
315
(315)
11
(11)
15
(15)
151
(151)
6
(6)
–
–
1,125
(1,122)
–
–
1,961
(1,957)
–
–
278
(398)
–
–
528
(528)
–
–
–
–
124
(124)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1 October 2017
S$
A$
RMB
GBP
US$
EUR
– Strengthened 1%
– Weakened 1%
– Strengthened 1%
– Weakened 1%
– Strengthened 1%
– Weakened 1%
– Strengthened 1%
– Weakened 1%
– Strengthened 1%
– Weakened 1%
– Strengthened 1%
– Weakened 1%
33.
FAIR VALUE OF ASSETS AND LIABILITIES
(a)
Fair Value Hierarchy
The Group categorises fair value measurements using a fair value hierarchy that is dependent on the
valuation inputs used as follows:
Level 1:
Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2:
Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3:
Inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in the
same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
19_0111_FPL_FR2019_FS_v18.indd 305
11/12/19 5:43 PM
306 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(b)
Classifications and Fair Values
The following tables show the carrying amounts and fair values of financial assets and liabilities, including
their levels in the fair value hierarchy. They do not include fair value information for trade and other
receivables, cash and cash equivalents, trade and other payables and short term bank borrowings as their
carrying amounts are reasonable approximation of fair values:
Carrying Amount
Fair Value
Derivatives
used for
hedging
$'000
Fair value
through
profit or loss
$'000
FVOCI
$'000
Amortised
cost
$'000
Total
$'000
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
Group
30 September 2019
Financial assets
measured at fair value
Equity investments at FVOCI
Derivative financial instruments:
– Cross currency
swaps/cross currency
interest rate swaps
– Interest rate swaps
– Foreign currency
forward contracts
Financial assets not
measured at fair value
Trade and other receivables#
Bank deposits and cash
and cash equivalents
Financial liabilities
measured at fair value
Derivative financial instruments:
– Cross currency swaps/
cross currency
interest rate swaps
– Interest rate swaps
– Foreign currency
forward contracts
Financial liabilities not
measured at fair value
Trade and other payables*
Loans and borrowings
(non-current)
Non-financial assets
Investment properties
# Excludes tax recoverable
–
–
90,688
81,257
453
–
81,710
24,884
–
6,598
31,482
–
–
–
90,688
–
–
–
–
–
90,688
106,141
453
6,598
203,880
902,930
902,930
3,579,979
4,482,909
3,579,979
4,482,909
–
–
–
–
28,623
113,974
900
143,497
2,172,558
2,172,558
–
–
–
–
–
–
28,623
111,400
225
140,248
–
2,574
675
3,249
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
90,688
90,688
106,141
453
–
–
106,141
453
6,598
113,192
–
90,688
6,598
203,880
28,623
113,974
900
143,497
–
–
–
–
28,623
113,974
900
143,497
13,905,327
16,077,885
13,905,327
16,077,885
4,170,608 9,853,070
4,170,608 9,853,070
– 14,023,678
– 14,023,678
–
–
–
– 22,639,296 22,639,296
* Excludes provisions and deferred income on land and building leases
19_0111_FPL_FR2019_FS_v18.indd 306
11/12/19 5:43 PM
Annual Report 2019 307
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(b)
Classifications and Fair Values (cont’d)
Loans and
receivables
$'000
Derivatives
used for
hedging
$'000
Carrying Amount
Fair value
through
profit or
loss
$'000
Available-
for-sale
$'000
Liabilities
at
amortised
cost
$'000
Fair Value
Total
$'000
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
Group
30 September 2018
(Restated)
Financial assets
measured at fair value
Derivative financial
instruments
– Cross currency
swaps/cross
currency interest
rate swaps
– Interest rate swaps
– Foreign currency
forward contracts
Financial assets not
measured at fair
value
Financial assets
Trade and other
receivables#
Bank deposits and cash
and cash equivalents
Financial liabilities
measured at fair
value
Derivative financial
instruments:
– Cross currency
swaps/cross
currency interest
rate swaps
Interest rate swaps
–
– Foreign currency
forward contracts
Financial liabilities not
measured at fair
value
Trade and other
payables*
Loans and borrowings
(non-current)
Non-financial assets
Investment properties
# Excludes tax recoverable
* Excludes provisions
–
–
–
–
–
–
–
–
–
–
–
–
–
643,152
2,598,745
3,241,897
11,399
7,461
–
18,860
16,565
56
5,076
21,697
–
–
–
–
–
–
–
–
–
–
–
–
8,475
–
–
8,475
12,551
23,106
906
36,563
5,711
3,567
2,296
11,574
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
27,964
7,517
5,076
40,557
8,475
643,152
2,598,745
3,250,372
18,262
26,673
3,202
48,137
–
–
–
–
–
–
–
–
27,964
7,517
5,076
40,557
18,262
26,673
3,202
48,137
–
–
–
–
–
–
–
–
27,964
7,517
5,076
40,557
18,262
26,673
3,202
48,137
–
–
–
–
–
–
–
–
–
1,632,610
1,632,610
– 12,302,757 12,302,757
– 13,935,367 13,935,367
3,281,274 9,051,584
3,281,274 9,051,584
– 12,332,858
– 12,332,858
–
–
–
–
– 20,756,479 20,756,479
19_0111_FPL_FR2019_FS_v18.indd 307
11/12/19 5:43 PM
308 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(b)
Classifications and Fair Values (cont’d)
Loans and
receivables
$'000
Derivatives
used for
hedging
$'000
Carrying Amount
Fair value
through
profit or
loss
$'000
Available-
for-sale
$'000
Liabilities
at
amortised
cost
$'000
Fair Value
Total
$'000
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
–
–
–
–
–
–
677,276
2,421,419
3,098,695
–
–
14
–
3,273
–
3,273
1,006
–
604
1,610
–
–
–
–
–
–
–
–
–
–
–
14
2,162
–
–
2,162
–
–
–
–
–
–
–
–
20,125
53,406
1,300
74,831
19,583
995
7,345
27,923
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
14
14
–
1,006
3,273
604
4,897
–
–
–
14
1,006
3,273
604
4,883
2,162
677,276
2,421,419
3,100,857
39,708
54,401
8,645
102,754
–
–
–
–
39,708
54,401
8,645
102,754
–
–
–
–
–
–
–
–
–
14
1,006
3,273
604
4,897
39,708
54,401
8,645
102,754
1,406,275
1,406,275
10,056,126
11,462,401
10,056,126
11,462,401
2,337,228 7,769,963
2,337,228 7,769,963
–
–
10,107,191
10,107,191
–
–
–
–
15,914,282
15,914,282
Group
1 October 2017
(Restated)
Financial assets
measured at fair value
Available-for-sale
financial assets:
– Quoted investments
Derivative financial
instruments
– Cross currency
swaps/cross
currency interest
rate swaps
– Interest rate swaps
– Foreign currency
forward contracts
Financial assets not
measured at fair value
Financial assets
Trade and other
receivables#
Bank deposits and cash
and cash equivalents
Financial liabilities
measured at fair value
Derivative financial
instruments:
– Cross currency
swaps/cross
currency interest
rate swaps
– Interest rate swaps
– Foreign currency
forward contracts
Financial liabilities not
measured at fair value
Trade and other
payables*
Loans and borrowings
(non-current)
Non-financial assets
Investment properties
# Excludes tax recoverable
* Excludes provisions
19_0111_FPL_FR2019_FS_v18.indd 308
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 309
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(b)
Classifications and Fair Values (cont’d)
(b)
Classifications and Fair Values (cont’d)
Fair Value
Carrying Amount
Fair Value
Fair
value
through
profit or
loss
$'000
Derivatives
used for
hedging
$'000
FVOCI
$'000
Amortised
cost
$'000
Total
$'000
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
Carrying Amount
Fair value
Derivatives
through
Liabilities
at
profit or
Available-
amortised
Loans and
receivables
$'000
used for
hedging
$'000
loss
$'000
for-sale
$'000
cost
$'000
Total
$'000
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
Group
1 October 2017
(Restated)
Financial assets
measured at fair value
Available-for-sale
financial assets:
– Quoted investments
Derivative financial
instruments
– Cross currency
swaps/cross
currency interest
rate swaps
– Interest rate swaps
– Foreign currency
forward contracts
Financial assets not
measured at fair value
Financial assets
Trade and other
receivables#
Bank deposits and cash
and cash equivalents
Financial liabilities
measured at fair value
Derivative financial
instruments:
– Cross currency
swaps/cross
currency interest
rate swaps
– Interest rate swaps
– Foreign currency
forward contracts
Financial liabilities not
measured at fair value
Trade and other
payables*
Loans and borrowings
(non-current)
Non-financial assets
Investment properties
# Excludes tax recoverable
* Excludes provisions
677,276
2,421,419
3,098,695
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
14
14
14
–
14
3,273
3,273
1,006
–
604
1,610
1,006
3,273
604
4,897
–
–
–
14
1,006
3,273
604
4,883
1,006
3,273
604
4,897
–
–
–
–
–
–
–
–
–
–
–
–
–
2,162
677,276
2,421,419
3,100,857
–
–
–
–
–
–
–
–
–
–
–
–
–
–
14
2,162
2,162
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
20,125
53,406
1,300
74,831
19,583
995
7,345
27,923
39,708
54,401
8,645
102,754
–
–
–
–
39,708
54,401
8,645
102,754
39,708
54,401
8,645
102,754
1,406,275
1,406,275
10,056,126
10,056,126
2,337,228 7,769,963
11,462,401
11,462,401
2,337,228 7,769,963
–
–
10,107,191
10,107,191
–
–
–
–
15,914,282
15,914,282
–
–
–
–
–
–
–
–
–
Company
30 September 2019
Financial assets
measured at fair value
Equity investments
at FVOCI
Derivative financial assets:
– Cross currency swaps
– Interest rate swaps
Financial assets not
measured at fair value
Trade and other receivables#
Bank deposits and
cash and cash equivalents
Financial liabilities
measured at fair value
Derivative financial liabilities:
– Cross currency swaps
– Interest rate swaps
– Foreign currency forward
contracts
Financial liabilities not
measured at fair value
Trade and other payables
Non-financial assets
Investment properties
# Excludes tax recoverable
–
–
129
129
–
–
–
2,307
5,717
225
8,249
–
–
–
–
–
–
–
–
–
–
–
2,148
2,148
13,186
129
13,315
–
–
2,148
13,186
129
15,463
2,307
5,717
225
8,249
–
–
–
–
2,307
5,717
225
8,249
–
2,148
13,186
–
13,186
–
–
2,148
–
–
–
–
2,148
13,186
129
15,463
4,065,978
4,065,978
11,454
4,077,432
11,454
4,077,432
–
–
–
–
2,307
5,717
225
8,249
249,144
249,144
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,150
2,150
19_0111_FPL_FR2019_FS_v18.indd 309
11/12/19 5:43 PM
310 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(b)
Classifications and Fair Values (cont’d)
Loans and
receivables
$'000
Derivatives
used for
hedging
$'000
Carrying Amount
Fair
value
through
profit or
loss
$'000
Liabilities
at
amortised
cost
$'000
Available-
for-sale
$'000
Fair Value
Total
$'000
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
–
–
–
–
1,314
1,314
8,626
–
8,626
–
–
–
–
–
–
8,626
1,314
9,940
–
–
–
8,626
1,314
9,940
–
–
–
8,626
1,314
9,940
–
4,212,577
8,514
4,221,091
–
–
–
–
–
–
–
–
2,148
–
–
2,148
–
2,148
– 4,212,577
–
8,514
– 4,223,239
–
–
–
–
–
–
–
7,438
906
8,344
5,711
254
13
5,978
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5,711
7,692
919
14,322
–
–
–
–
5,711
7,692
919
14,322
–
–
–
–
5,711
7,692
919
14,322
351,442
351,442
–
–
–
–
1,600
1,600
Company
30 September 2018
Financial assets
measured at fair value
Derivative financial assets:
– Cross currency swaps
– Interest rate swaps
Financial assets not
measured at fair value
Financial assets
Trade and other receivables#
Bank deposits and
cash and cash equivalents
Financial liabilities
measured at fair value
Derivative financial liabilities:
– Cross currency swaps
– Interest rate swaps
– Foreign currency forward
contracts
Financial liabilities not
measured at fair value
Trade and other payables
Non-financial assets
Investment properties
#
Excludes tax recoverable
19_0111_FPL_FR2019_FS_v18.indd 310
11/12/19 5:43 PM
Annual Report 2019 311
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(b)
Classifications and Fair Values (cont’d)
Loans and
receivables
$'000
Derivatives
used for
hedging
$'000
Carrying Amount
Fair
value
through
profit or
loss
$'000
Liabilities
at
amortised
cost
$'000
Available-
for-sale
$'000
Fair Value
Total
$'000
Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
Company
1 October 2017
Financial assets
measured at fair value
Derivative financial assets:
– Cross currency swaps
–
Interest rate swaps
Financial assets not
measured at fair value
Financial assets
Trade and other receivables#
Bank deposits and
cash and cash equivalents
Financial liabilities
measured at fair value
Derivative financial liabilities:
– Cross currency swaps
–
Interest rate swaps
– Foreign currency forward
contracts
Financial liabilities not
measured at fair value
Trade and other payables
Non-financial assets
Investment properties
# Excludes tax recoverable
–
–
–
–
3,393,530
45,432
3,438,962
–
–
–
–
–
–
–
73
90
163
–
–
–
–
–
–
–
–
–
–
73
90
163
2,148
–
–
2,148
–
2,148
– 3,393,530
–
45,432
– 3,441,110
–
–
–
–
–
–
815
16,231
19,052
628
1,300
18,346
790
20,470
–
–
–
–
–
–
–
–
–
–
–
–
–
–
19,867
16,859
2,090
38,816
206,483
206,483
–
–
–
–
–
–
–
73
90
163
–
–
–
73
90
163
19,867
16,859
2,090
38,816
–
–
–
–
19,867
16,859
2,090
38,816
–
–
–
–
1,500
1,500
19_0111_FPL_FR2019_FS_v18.indd 311
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312 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(c)
Determination of Fair Value
The following valuation methods and assumptions are used to estimate the fair values of the following
significant classes of assets and liabilities:
(i)
Derivatives
Foreign currency forward contracts, cross currency interest rate swaps, cross currency swaps and
interest rate swaps are valued using valuation techniques with market observable inputs. The most
frequently applied valuation techniques include forward pricing and swap models, using present
valuation calculations. The models incorporate various inputs including the foreign exchange spot
and forward rates, interest rate and forward rate curves.
(ii)
Non-Derivative Financial Liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of
future principal and interest cash flows, discounted using the market rate of interest at the reporting
date.
(iii)
Other Financial Assets and Liabilities
The fair value of quoted securities is their quoted bid price at the reporting date. The fair values of
unquoted equity investments are derived based on discounted cash flow method, option pricing
model and transacted price between a willing buyer and a willing seller in an arm’s length transaction
wherein the parties had each acted knowledgeably and without compulsion.
The discounted cash flow method involves the estimation and projection of net cash flows over a
period and discounting the stream of net cash flow (including estimated terminal net cash flow) at
an estimated required rate of return to arrive at the net present value.
The option pricing model allocates the equity value (determined via the discounted cash flow
method) across various classes of shares in the underlying investment’s capital structure by taking
into account the liquidation preferences, conversion rights and participating rights of different equity
classes.
The carrying amounts of financial assets and liabilities with a maturity of less than one year (including
trade and other receivables, cash and cash equivalents and trade and other payables) are assumed to
approximate their fair values because of the short period to maturity. All other financial assets and
liabilities are discounted to determine their fair values.
(iv)
Investment Properties
The Group’s investment property portfolio is mostly valued by external and independent valuers at
least once every two years. The fair values are based on open market values, being the estimated
amount for which a property could be exchanged on the date of the valuation between a willing buyer
and a willing seller in an arm’s length transaction wherein the parties had each acted knowledgeably
and without compulsion. The valuers have considered valuation techniques including market
comparison method, capitalisation method and discounted cash flow method in arriving at the open
market value as at the reporting date. In determining the fair value, the valuers have used valuation
techniques which involve certain estimates. The key assumptions used to determine the fair value of
investment properties include market-corroborated capitalisation rate, terminal yield and discount
rate.
19_0111_FPL_FR2019_FS_v18.indd 312
11/12/19 5:43 PM
Annual Report 2019 313
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(c)
Determination of Fair Value (cont’d)
(iv)
Investment Properties (cont’d)
IPUC are stated at fair value which has been determined based on valuations performed at reporting
date. Valuations are performed by accredited independent valuers with recognised and relevant
professional qualification or internal valuers with recent experience in the location and category of the
properties being valued. The fair values of IPUC are determined using a combination of capitalisation
method, discounted cash flow method and residual land value method, where appropriate.
The valuations are based on open market values on the highest and best use basis.
The market comparison method involves the analysis of comparable sales of similar properties and
adjusting the sale prices to that reflective of the investment properties.
The capitalisation method capitalises the estimated net income of the property for perpetuity or
the balance term of the lease tenure at a capitalisation rate that is appropriate for the type of use,
tenure and reflective of the quality of the investment. Capital adjustments are then made to derive
the capital value of the property.
The discounted cash flow method involves the estimation and projection of net cash flows over a
period and discounting the stream of net cash flow (including estimated terminal net cash flow) at
an estimated required rate of return to arrive at the net present value.
In the residual land value method of valuation, the value of the property in its existing partially
completed state of construction taking into account the cost of work done is arrived at by deducting
estimated cost to complete and other relevant costs from the gross development value of the
proposed development, assuming satisfactory completion.
In relying on the valuation reports, management has exercised its judgement and is satisfied that the
valuation methods and estimates are reflective of current market conditions.
(v)
Assets Held for Sale
The fair value of the Group’s investment properties held for sale is either valued by an independent
valuer or based on agreed contractual selling price on a willing buyer seller basis. For investment
properties held for sale valued by an independent valuer, the valuer has considered the direct
comparison and income capitalisation approaches in arriving at the open market value as at the
balance sheet date. In determining the fair value, the valuer used valuation techniques which involve
certain estimates. The key assumptions used to determine the fair value of investment properties
held for sale include market-corroborated capitalisation rate.
19_0111_FPL_FR2019_FS_v18.indd 313
11/12/19 5:43 PM
314 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(d)
Level 3 Fair Value Measurements
(i)
Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements
The following table shows the valuation techniques used in measuring significant Level 3 fair values,
as well as the significant unobservable inputs used:
Recurring Fair Value Measurements
Description
Investment Properties
Singapore SBU
– Singapore
Fair Value
as at
30 September
2019
$'000
Valuation
Techniques
Key Unobservable
Inputs
Inter-relationship
Between Key
Unobservable
Inputs and Fair Value
Measurement
9,988,210
(2018: 8,710,000;
1 October 2017:
6,986,300)
– Capitalisation –
method
Capitalisation rate:
3.5% to 6.0%
(2018: 3.5% to 5.3%;
1 October 2017:
3.3% to 5.3%)
The estimated fair value
varies inversely against
the capitalisation rate
– Discounted
cash flow
method
– Discount rate:
6.5% to 8.0%
(2018: 6.5% to 7.8%;
1 October 2017:
7.0% to 8.0%)
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
– Market
comparison
method
–
–
Terminal yield rate:
3.8% to 6.3%
(2018: 3.8% to 5.3%;
1 October 2017:
3.5% to 5.8%)
Transacted price
of comparable
properties(1):
$1,742 psf to
$2,596 psf
(2018: Nil;
1 October 2017: Nil)
The estimated fair value
varies with different
adjustment factors used.
– Australia
822,274
(2018: 836,888;
1 October 2017:
858,857)
– Capitalisation –
method
Capitalisation rate:
4.9% to 7.0%
(2018: 5.0% to 7.0%;
1 October 2017:
5.3% to 7.3%)
The estimated fair value
varies inversely against
the capitalisation rate
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
– Discounted
cash flow
method
– Discount rate:
6.2% to 7.0%
(2018: 7.0% to 7.5%;
1 October 2017:
6.8% to 7.7%)
–
Terminal yield rate:
5.3% to 7.5%
(2018: 5.3% to 7.3%;
1 October 2017:
5.5% to 7.3%)
19_0111_FPL_FR2019_FS_v18.indd 314
11/12/19 5:43 PM
Annual Report 2019 315
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(d)
Level 3 Fair Value Measurements (cont’d)
(i)
Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements (cont’d)
Recurring Fair Value Measurements (cont’d)
Fair Value
as at
30 September
2019
$'000
Description
Investment Properties
Valuation
Techniques
Key Unobservable
Inputs
Inter-relationship
Between Key
Unobservable
Inputs and Fair Value
Measurement
Singapore SBU (cont’d)
– Malaysia
104,937
(2018: Nil;
1 October 2017:
Nil)
– Capitalisation –
method
Capitalisation rate:
7.0%
(2018: Nil;
1 October 2017: Nil)
The estimated fair value
varies inversely against
the capitalisation rate
– Discounted
cash flow
method
– Discount rate:
8.8%
(2018: Nil;
1 October 2017: Nil)
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
–
Terminal yield rate:
7.3%
(2018: Nil;
1 October 2017: Nil)
Investment Properties
under Construction
Singapore SBU
– Singapore
78,860
(2018: Nil;
1 October 2017:
1,416,000)
– Residual land
value method
–
The estimated fair value
Total gross
development values: would increase with
$119,000,000
(2018: Nil;
1 October 2017:
$1,715,000,000)
higher gross development
value and decrease
with higher cost to
completion
–
Total estimated
construction cost to
completion:
$52,689,000
(2018: Nil;
1 October 2017:
$156,469,000)
Investment Properties
Hospitality SBU
– Singapore
1,093,000
(2018: 799,000;
1 October 2017:
773,300)
– Capitalisation –
method
Capitalisation rate:
3.0% to 5.0%
(2018: 3.3% to 5.2%;
1 October 2017:
3.3% to 5.3%)
The estimated fair value
varies inversely against
the capitalisation rate
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
– Discounted
cash flow
method
– Discount rate:
5.5% to 7.0%
(2018: 4.5% to 7.0%;
1 October 2017:
4.5% to 7.3%)
–
Terminal yield rate:
3.0% to 5.3%
(2018: 3.3% to 5.5%;
1 October 2017:
3.3% to 5.6%)
19_0111_FPL_FR2019_FS_v18.indd 315
11/12/19 5:43 PM
316 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(d)
Level 3 Fair Value Measurements (cont’d)
(i)
Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements (cont’d)
Recurring Fair Value Measurements (cont’d)
Description
Fair Value
as at
30 September
2019
$'000
Investment Properties
Hospitality SBU (cont’d)
– Australia
247,739
(2018: 260,227;
1 October 2017:
187,619)
Valuation
Techniques
Key Unobservable
Inputs
Inter-relationship
Between Key
Unobservable
Inputs and Fair Value
Measurement
– Capitalisation –
method
Capitalisation rate:
5.5%
(2018: 5.5% to 6.5%;
1 October 2017:
6.8%)
The estimated fair value
varies inversely against
the capitalisation rate
– Discounted
cash flow
method
– Discount rate:
7.5% to 7.8%
(2018: 7.5% to 8.0%;
1 October 2017:
8.3% to 8.5%)
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
– Market
comparison
method
–
–
Terminal yield rate:
5.5% to 5.8%
(2018: 5.8% to 6.5%;
1 October 2017:
6.8% to 7.0%)
Transacted price
of comparable
properties(1):
$608 psf to $1,308 psf
(2018: $1,180 psf to
$1,710 psf;
1 October 2017:
$772 psf to $1,886 psf)
The estimated fair value
varies with different
adjustment factors used
– Europe
775,855
(2018: 695,890;
1 October 2017:
706,344)
– Discounted
cash flow
method
– Discount rate:
6.8% to 9.0%
(2018: 7.0% to 8.5%;
1 October 2017:
7.3% to 9.5%)
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
– Market
comparison
method
–
–
Terminal yield rate:
4.8% to 7.0%
(2018: 5.0% to 6.5%;
1 October 2017:
5.3% to 7.5%)
Transacted price
of comparable
properties(1):
$2,532 psf
(2018: $1,998 psf to
$3,418 psf;
1 October 2017:
$2,283 psf to $3,534 psf)
The estimated fair value
varies with different
adjustment factors used
19_0111_FPL_FR2019_FS_v18.indd 316
11/12/19 5:43 PM
Annual Report 2019 317
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(d)
Level 3 Fair Value Measurements (cont’d)
(i)
Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements (cont’d)
Recurring Fair Value Measurements (cont’d)
Fair Value
as at
30 September
2019
$'000
Description
Investment Properties
Valuation
Techniques
Key Unobservable
Inputs
Inter-relationship
Between Key
Unobservable
Inputs and Fair Value
Measurement
Hospitality SBU (cont’d)
– China
312,148
(2018: 350,484;
1 October 2017:
247,732)
– Discounted
cash flow
method
– Discount rate:
5.4%
(2018: 5.4% to 5.5%;
1 October 2017: 5.4%)
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
–
Terminal yield rate:
2.4% to 2.5%
(2018: 2.4% to 2.5%;
1 October 2017: 2.4%)
– Others
221,721
(2018: 254,253;
1 October 2017:
90,424)
– Discounted
cash flow
method
– Discount rate:
7.6%
(2018: 7.4%;
1 October 2017: 7.5%)
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
– Market
comparison
method
–
–
Terminal yield rate:
7.3%
(2018: 7.5%;
1 October 2017: Nil)
Transacted price
of comparable
properties(1):
Nil
(2018: $285 psf to
$301 psf;
1 October 2017:
$205 psf to $234 psf)
The estimated fair value
varies with different
adjustment factors used
Investment Properties
under Construction
Hospitality SBU
– Singapore
Nil
(2018: 241,849;
1 October 2017:
192,884)
– Capitalisation –
method
Capitalisation rate: Nil
(2018: 4.7%;
1 October 2017: 4.8%)
The estimated fair value
varies inversely against
the capitalisation rate
– Residual land
value method
–
The estimated fair value
Total gross
development value: Nil would increase with
(2018: $301,000,000;
1 October 2017:
$297,000,000)
higher gross development
value and decrease
with higher cost to
completion
–
Total estimated
construction cost to
completion: Nil
(2018: $33,135,000;
1 October 2017:
$72,291,000)
19_0111_FPL_FR2019_FS_v18.indd 317
11/12/19 5:43 PM
318 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(d)
Level 3 Fair Value Measurements (cont’d)
(i)
Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements (cont’d)
Recurring Fair Value Measurements (cont’d)
Description
Fair Value
as at
30 September
2019
$’000
Investment Properties
under Construction
Hospitality SBU (cont’d)
– Europe
Nil
(2018: 99,626;
1 October 2017:
79,563)
Valuation
Techniques
Key Unobservable
Inputs
Inter-relationship
Between Key
Unobservable
Inputs and Fair Value
Measurement
– Capitalisation –
method
Capitalisation rate: Nil The estimated fair value
varies inversely against
(2018: 5.5%;
the capitalisation rate
1 October 2017: 5.5%)
– Discounted
cash flow
method
– Discount rate: Nil
(2018: 7.5%;
1 October 2017: 7.5%)
The estimated fair value
varies inversely against
the discount rate
Investment
Properties
Australia SBU
– Frasers Property
Australia
866,901
(2018: 1,218,945;
1 October 2017:
1,189,000)
– Capitalisation –
method
Capitalisation rate:
5.3% to 6.8%
(2018: 5.3% to 7.3%;
1 October 2017:
5.5% to 7.5%)
The estimated fair value
varies inversely against
the capitalisation rate
– Discounted
cash flow
method
– Discount rate:
6.6% to 7.5%
(2018: 6.3% to 8.3%;
1 October 2017:
7.0% to 8.5%)
The estimated fair value
varies inversely against
the discount rate
– FLT
3,290,787
(2018: 2,924,551;
1 October 2017:
1,959,776)
– Capitalisation –
method
Capitalisation rate:
4.6% to 11.3%
(2018: 4.1% to 11.8%;
1 October 2017:
5.8% to 11.4%)
The estimated fair value
varies inversely against
the capitalisation rate
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
– Discounted
cash flow
method
– Discount rate:
5.3% to 9.0%
(2018: 6.8% to 9.0%;
1 October 2017:
7.1% to 9.5%)
–
Terminal yield rate:
4.1% to 44.9%
(2018: 5.8% to 26.6%;
1 October 2017:
6.0% to 22.8%)
19_0111_FPL_FR2019_FS_v18.indd 318
11/12/19 5:43 PM
Annual Report 2019 319
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(d)
Level 3 Fair Value Measurements (cont’d)
(i)
Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements (cont’d)
Recurring Fair Value Measurements (cont’d)
Description
Fair Value
as at
30 September
2019
$’000
Investment Properties
under Construction
Australia SBU
– FLT
Nil
(2018: Nil;
1 October 2017:
66,369)
Valuation
Techniques
Key Unobservable
Inputs
Inter-relationship
Between Key
Unobservable
Inputs and Fair Value
Measurement
– Capitalisation – Capitalisation rate:
method
Nil
(2018: Nil;
1 October 2017:
6.0% to 6.3%)
The estimated fair value
varies inversely against
the capitalisation rate
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
– Discounted
cash flow
approach
– Discount rate:
Nil
(2018: Nil;
1 October 2017:
7.3%)
– Terminal yield rate:
Nil
(2018: Nil;
1 October 2017:
6.3% to 7.0%)
Investment Properties
Europe and rest of Asia
– Vietnam
66,562
(2018: 62,627;
1 October 2017:
54,969)
– Capitalisation – Capitalisation rate:
method
9.0%
(2018: 9.5%;
1 October 2017: Nil)
The estimated fair value
varies inversely against
the capitalisation rate
– Discounted
cash flow
method
– Discount rate:
12.6%
(2018: 12.0%;
1 October 2017: 12.0%) terminal yield rate
The estimated fair value
varies inversely against
the discount rate and
– Terminal yield rate:
9.0%
(2018: 9.5%;
1 October 2017: 10.0%)
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320 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(d)
Level 3 Fair Value Measurements (cont’d)
(i)
Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements (cont’d)
Recurring Fair Value Measurements (cont’d)
Description
Fair Value
as at
30 September
2019
$’000
Investment Properties
Europe and rest of Asia (cont’d)
– Europe
2,487,206
(2018: 2,666,555;
1 October 2017:
989,619)
Valuation
Techniques
Key Unobservable
Inputs
Inter-relationship
Between Key
Unobservable
Inputs and Fair Value
Measurement
– Capitalisation –
method
Capitalisation rate:
5.3% to 15.0%
(2018: 4.7% to 15.0%;
1 October 2017:
5.0% to 12.0%)
The estimated fair value
varies inversely against
the capitalisation rate
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
– Discounted
cash flow
method
– Discount rate:
4.0% to 7.5%
(2018: 4.0% to 9.0%;
1 October 2017:
5.0% to 9.0%)
–
Terminal yield rate:
4.3% to 8.0%
(2018: 6.3%;
1 October 2017: Nil)
– Thailand
2,224,594
(2018: 1,578,549;
1 October 2017:
Nil)
– Discounted
cash flow
method
– Discount rate:
8.0% to 20.0%
(2018: 8.0% to 17.0%;
1 October 2017: Nil)
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
– Market
comparison
method
–
–
Terminal yield rate:
7.0% to 11.0%
(2018: 7.0% to 7.5%:
1 October 2017: Nil)
Transacted price
of comparable
properties(1):
$3 psf to $2,135 psf
(2018: $2 psf to
$45 psf;
1 October 2017: Nil)
The estimated fair value
varies with different
adjustment factors used
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Annual Report 2019 321
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(d)
Level 3 Fair Value Measurements (cont’d)
(i)
Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements (cont’d)
Recurring Fair Value Measurements (cont’d)
Description
Fair Value
as at
30 September
2019
$’000
Valuation
Techniques
Key Unobservable
Inputs
Investment Properties
under Construction
Europe and rest of Asia
– Thailand
58,502
(2018: 57,035;
1 October 2017:
Nil)
– Market
comparison
method
– Europe
Nil
(2018: Nil;
1 October 2017:
107,954)
– Market
comparison
method
– Vietnam
Nil
(2018: Nil;
1 October 2017:
6,272)
– Discounted
cash flow
approach
–
–
–
Transacted price
of comparable
properties(1):
$5 psf to $25 psf
(2018: $5 psf to
$42 psf;
1 October 2017: Nil)
Transacted price
of comparable
properties(1):
Nil (2018: Nil;
1 October 2017:
$310 psf to $1,180 psf)
Inter-relationship
Between Key
Unobservable
Inputs and Fair Value
Measurement
The estimated fair value
varies with different
adjustment factors used
The estimated fair value
varies with different
adjustment factors used
Capitalisation rate:
Nil (2018: Nil;
1 October 2017: 11.0%)
The estimated fair value
varies inversely against
the capitalisation rate
– Discount rate:
Nil (2018: Nil;
1 October 2017: 16.0%)
The estimated fair value
varies inversely against
the discount rate
– Market
comparison
method
Transacted price
of comparable
properties(1):
Nil (2018: Nil;
1 October 2017:
$315 psf to $344 psf)
The estimated fair value
varies with different
adjustment factors used
Unquoted equity
investments
FVOCI
90,688
– Discounted
cash flow
method
– Discount rate:
8.0% to 11.5%
–
Terminal yield rate:
2.0% to 3.0%
– Option pricing – Discount rate:
model
12.0%
– Willing buyer
willing seller in
an arm's length
transaction
The estimated fair value
varies inversely against
the discount rate and
terminal yield rate
The estimated fair value
varies inversely against
the discount rate
(1) Adjustments are made for any difference in the location, tenure, size and condition of the specific property.
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322 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(d)
Level 3 Fair Value Measurements (cont’d)
(i)
Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements (cont’d)
Key unobservable inputs correspond to:
•
•
•
Capitalisation rate corresponds to a rate of return on a property based on the income that the
property is expected to generate.
Discount rate represents the required rate of return, adjusted for a risk premium that reflects
the risks relevant to an asset.
Terminal yield rate reflects an exit capitalisation rate applied to a projected terminal cash
flow.
(ii)
Movements in Level 3 Assets Measured at Fair Value
The movements of financial and non-financial assets, classified under Level 3 and measured at fair
value have been disclosed in Note 11 and 15.
(iii)
Valuation Policies and Procedures
The significant non-financial asset of the Group categorised within Level 3 of the fair value hierarchy
is investment properties. Generally, the fair values of investment properties are determined at least
once every two years by independent professional valuers. Investment properties that are not
independently valued are carried at fair value determined by directors’ valuation.
The independent professional valuers and internal valuation teams where each member of the
teams is professionally qualified and is an accredited property valuer (collectively, the “Valuers”) are
experts who possess the relevant credentials and knowledge on the subject of property valuation,
valuation methodologies and SFRS(I) 13 fair value measurement guidance to perform the valuation.
For valuations performed by the Valuers, the appropriateness of the valuation methodologies and
assumptions adopted are reviewed along with the appropriateness and reliability of the inputs
(including those developed internally by the Group) used in the valuations.
In selecting the appropriate valuation models and inputs to be adopted for each valuation that uses
significant non-observable inputs, the Valuers are required to recalibrate the valuation models and
inputs to actual market transactions (which may include transactions entered into by the Group
with third parties as appropriate) that are relevant to the valuation if such information is reasonably
available. For valuations that are sensitive to the unobservable inputs used, the Valuers are required,
to the extent practicable, to use a minimum of two valuation approaches to allow for cross-checks.
Significant changes
in fair value measurements from period to period are evaluated for
reasonableness. Key drivers of the changes are identified and assessed for reasonableness against
relevant information from independent sources, or internal sources if necessary and appropriate.
In accordance with the Group’s reporting policies, the valuation process and the results of the
independent valuations and directors’ valuation are reviewed at least once a year by the Executive
Committee of the Board and the Audit Committee before the results are presented to the Board of
Directors for approval.
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Annual Report 2019 323
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(e)
Fair Value of Financial Instruments by Classes that are not Carried at Fair Value and whose Carrying
Amounts are not Reasonable Approximation of Fair Value
(i)
Other Receivables (Non-Current) and Other Payables (Non-Current)
No disclosure of fair value is made for non-current other receivables and other payables as it is
not practicable to determine their fair values with sufficient reliability since the balances have no
fixed terms of repayment. The Group and the Company do not anticipate that the carrying amounts
recorded at the end of the financial year would be significantly different from the values that would
eventually be received or settled.
(ii)
Rental Deposits Payables (Non-Current)
No disclosure of fair value is made for rental deposits payables as the Group does not anticipate that
the carrying amounts recorded at the end of the financial year would be significantly different from
the values that would eventually be received or settled.
34.
CAPITAL MANAGEMENT
The primary objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in
order to support its business and maximise shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions.
To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares.
No changes were made in the objectives, policies or processes during the years ended 30 September 2019 and 30
September 2018.
The Group monitors capital using a gearing ratio, which is net debt divided by total equity, as follows:
Bank deposits
Cash and cash equivalents
Loans and borrowings
Net debt
Total equity
2019
$'000
Group
2018
(Restated)
$'000
2017
(Restated)
$'000
467,023
3,112,956
(17,395,899)
(13,815,920)
16,090,546
448,743
2,150,002
(14,945,700)
(12,346,955)
14,740,235
272,205
2,149,214
(11,647,844)
(9,226,425)
13,172,115
Net debt over total equity ratio
0.86
0.84
0.70
Certain entities in the Group are required to comply with certain externally imposed capital requirements in respect
of some of their external borrowings, and these have been complied with during the year.
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324 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
35.
COMMITMENTS
(a)
Capital Commitments
Capital and development expenditures contracted for as at the end of the reporting period but not
recognised in the financial statements are as follows:
Commitments in respect of contracts placed for:
– development expenditure for properties held for sale
– capital expenditure for investment properties
– share of joint ventures’ and associates’ capital and development expenditure
– equity investments in joint ventures, associates and investee companies
– shareholders’ loans committed to joint ventures and associates
– others
Group
2019
$'000
2018
$'000
660,365
96,738
220,576
76,609
185,395
3,878
1,243,561
252,511
104,835
68,216
156,705
173,859
5,702
761,828
Equity investments and shareholders’ loans commitments
The Company, through the following two indirect wholly-owned subsidiaries, Frasers Property Ventures I
Pte. Ltd. and Frasers Property Ventures II Pte. Ltd., entered into agreements to subscribe for equity interest
in certain companies. The aggregate investment amount for the agreements is up to US$60,000,000
(approximately S$82,722,000). As at 30 September 2019, the Company has injected a total of US$39,210,000
(S$54,059,000) (2018: US$4,622,000 (S$6,317,000)).
FPHT’s aggregate capital commitment for the One Bangkok Restructuring is approximately THB 7.1 billion
(S$297.8 million). As at 30 September 2019, FPHT has injected THB 2.0 billion (S$90.3 million) (2018: THB
1.1 billion (S$44.1 million)).
(b)
Operating Lease Commitments – as Lessee
Future minimum rental payable under non-cancellable operating leases at the end of the reporting period
is as follows:
Within 1 year
From 1 year to 5 years
After 5 years
2019
$'000
Group
2018
$'000
2017
$'000
36,787
145,522
1,146,471
1,328,780
30,032
122,336
1,100,291
1,252,659
28,200
115,506
955,095
1,098,801
The Group leases land and buildings from non-related parties under operating leases. These leases have
varying terms, escalation clauses and renewal rights. Some leases provide for additional rent payments that
are based on changes in a local price index.
Rental expense recognised in the profit statement is as follows:
2019
$'000
Group
2018
$'000
2017
$'000
Minimum lease payments
39,412
36,998
32,482
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Annual Report 2019 325
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
35.
COMMITMENTS (CONT’D)
(c)
Operating Lease Commitments – as Lessor
The Group has entered into commercial property leases on its investment properties and certain properties
held for sale. These non-cancellable leases have remaining non-cancellable lease terms of between 2 to 8
years. Future minimum rental receivable under non-cancellable operating leases at the end of the reporting
period is as follows:
Within 1 year
From 1 year to 5 years
After 5 years
Rental income from investment properties is disclosed in Note 3.
36.
GUARANTEE CONTRACTS
2019
$'000
Group
2018
(Restated)
$'000
2017
(Restated)
$'000
969,203
1,950,876
1,034,238
3,954,317
761,460
1,895,475
1,257,390
3,914,325
557,803
1,289,750
796,000
2,643,553
(i)
(ii)
(iii)
(iv)
(v)
As at 30 September 2019, the Company has provided unconditional and irrevocable corporate guarantees
for up to $16,153,231,000 (2018: $15,967,520,000) for loans and borrowings and perpetual securities
issued by certain subsidiaries. As at 30 September 2019, the total amount of utilised borrowing facilities
was $9,547,656,000 (2018: $9,473,761,000).
As at 30 September 2019, the Company has provided bankers’ guarantees of $57,433,000 (2018:
$20,408,000) to unrelated parties in respect of performance contracts on behalf of certain subsidiaries and
joint ventures. No liability is expected to arise.
Certain subsidiaries of the Group have provided bankers’ guarantees of S$75,902,000 (A$81,554,000)
(2018: S$68,282,000 (A$69,125,000)) to unrelated parties in Australia in respect of performance contracts
and S$45,554,000 (A$48,946,000) (2018: S$52,238,000 (A$52,883,000)) of insurance bonds representing
undertakings given to unrelated parties by insurance companies on behalf of the subsidiaries. No liability is
expected to arise.
A wholly-owned subsidiary of the Group has provided S$73,355,000 (RMB 379,294,000) (2018:
S$29,769,000 (RMB 149,745,000)) of corporate guarantees to banks in China in connection with loans
provided by the banks to the subsidiary's property buyers, covering the period from loan contract date to
the property delivery date.
Certain subsidiaries of the Group have provided bankers’ guarantees of S$136,635,000 (THB 3,036,329,000)
(2018: S$2,110,000 (THB 50,000,000)) to unrelated parties in respect of performance contracts. No liability
is expected to arise.
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326 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
37.
ACQUISITIONS/DISPOSALS OF SUBSIDIARIES
(a)
Acquisitions of Subsidiaries
The Group acquires subsidiaries that own real estate. At the time of acquisition, the Group considers
whether each acquisition represents the acquisition of a business or the acquisition of an asset. The Group
accounts for an acquisition as a business combination where an integrated set of activities is acquired in
addition to the property, and together, they are capable of being managed to provide returns to the Group.
When the acquisition of a subsidiary does not represent a business, it is accounted for as an acquisition of a
group of assets and liabilities.
(i)
Business Combinations
The following acquisitions of the Group have been accounted for as business combinations:
(a)
Following the Group’s additional acquisition of ordinary shares in FPT, the Group’s effective
shareholding in FPT increased from 40.95% to 53.74%, and with effect from 2 April 2018, FPT
was consolidated as a subsidiary.
On 4 April 2018, Frasers Assets launched a tender offer for the shares of FPT, at a price of
S$0.75 (THB 17.90) per share (the “Offer”). The Offer closed on 15 May 2018. Pursuant to the
Offer, the Group’s effective shareholding in FPT increased from 53.74% to 64.72%.
The Group engaged an independent firm to perform PPA for FPT. Based on the provisional
PPA, the fair value of identifiable net assets over the consideration paid, amounting to
S$20,239,000 (THB 486,279,000), was included in net gain/(loss) on acquisitions and disposals
of subsidiaries, joint ventures and associates under “Exceptional Items” in the Group’s profit
statement for the year ended 30 September 2018.
The PPA was finalised during the current financial year, and there are no changes to the fair
value previously recognised.
(b)
On 6 July 2018, Frasers Property Advisory (Europe) B.V., a wholly-owned subsidiary of the
Group, completed the acquisition of the following entities (collectively, the “Alpha entities”),
for a consideration of S$45,291,000 (approximately EUR 28,550,000) (the “Alpha Acquisition”).
Subsidiaries
Principal Activity
Country of
incorporation
Percentage
of issued
share capital
acquired
Alpha Industrial GmbH & Co. KG.
Management Services
Alpha Industrial Management GmbH Management Services
Germany
Germany
100.0%
100.0%
The Group engaged an independent firm to perform PPA for the Alpha Acquisition. Based on
the provisional PPA, the residual excess of consideration paid over the fair value of identifiable
net assets have been recorded as goodwill amounting to S$43,604,000 (approximately EUR
27,486,000).
The PPA was finalised during the current financial year, and there are no changes to the fair
value previously recognised.
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Annual Report 2019 327
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
37.
ACQUISITIONS/DISPOSALS OF SUBSIDIARIES (CONT’D)
(a)
Acquisitions of Subsidiaries (cont’d)
(i)
Business Combinations (cont’d)
Following completion adjustments, the consideration was reduced from S$45,291,000
(approximately EUR 28,550,000) to S$37,380,000 (approximately EUR 24,776,000).
Consequently, the goodwill was reduced from S$43,604,000 (approximately EUR 27,486,000)
to S$35,774,000 (approximately EUR 23,712,000) (Note 16).
(c)
Following the PGIM ARF Redemption, the Group’s deemed interest in PGIM ARF increased
from 66.6% to 74.9% (Note 14(a)). With effect from 1 July 2019, PGIM ARF was consolidated
as a subsidiary.
Goodwill arising from acquisition
The Group engaged an independent firm to perform PPA for the acquisition of PGIM ARF. Based
on the PPA, part of the consideration paid for the net assets acquired has been identified and
provisionally allocated to assets held for sale. The fair value of identifiable net assets over
the consideration paid amounting to $4,819,000 is included in net gain/(loss) on acquisitions
and disposals of subsidiaries, joint ventures and associates under “Exceptional Items” in the
Group’s profit statement.
Impact of the acquisition on the profit statement
From the date PGIM ARF became a subsidiary, PGIM ARF has contributed revenue of
$57,257,000 and profit for the period (excluding fair value change on investment properties)
of $22,096,000 to the Group. If the business combination had taken place at the beginning
of the financial year, PGIM ARF’s contribution to the Group’s revenue and profit for the year
(excluding fair value change on investment properties) would have been $245,040,000 and
$93,351,000, respectively.
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328 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
37.
ACQUISITIONS/DISPOSALS OF SUBSIDIARIES (CONT’D)
(a)
Acquisitions of Subsidiaries (cont’d)
(i)
Business Combinations (cont’d)
Finalised accounting for the acquisition of PGIM ARF
The PPA was finalised during the current financial year. The fair value of the identifiable assets
and liabilities of PGIM ARF as at the acquisition date were:
Investment properties
Assets held for sale
Property, plant and equipment
Derivative financial instruments
Trade and other receivables
Cash and cash equivalents
Borrowings
Deferred tax liabilities
Trade and other payables
Liabilities held for sale
Total identifiable net assets at fair value
Less: Non-controlling interest at fair value
Less: Initial interest as an associate (Note 14)
Gain on acquisition of a subsidiary
Consideration paid in cash
Less: Cash and cash equivalents of subsidiary acquired
Cash inflow on acquisition, net of cash and cash equivalents acquired
Fair Value
Recognised on
Acquisition
$'000
2,902,000
279,882
788
509
6,669
367,268
3,557,116
(1,255,003)
(20,337)
(368,799)
(48,422)
1,864,555
(468,643)
(1,391,093)
(4,819)
–
(367,268)
(367,268)
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Annual Report 2019 329
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
37.
ACQUISITIONS/DISPOSALS OF SUBSIDIARIES (CONT’D)
(a)
Acquisitions of Subsidiaries (cont’d)
(i)
Business Combinations (cont’d)
(d)
Subsequent to the VTO (Note 14(d)), FPT made further open-market purchases of additional
8,199,900 Golden Land shares at a range of between THB 8.25 to THB 8.47 (S$0.37 to S$0.38)
per share in cash.
Pursuant to the VTO and the subsequent open-market purchases, the Group held
2,204,098,601 Golden Land shares and as at 30 September 2019, the Group’s deemed interest
in GOLD increased to 94.9%.
Goodwill arising from acquisition
The Group engaged an independent firm to perform PPA for the acquisition of GOLD. Based
on the PPA, part of the consideration paid for the net assets acquired has been identified and
provisionally allocated to investment properties, property, plant and equipment, properties
held for sale, investments in joint ventures and associates, other payables and deferred tax
liabilities. The fair value of identifiable net assets over the consideration paid, amounting to
S$77,701,000 (approximately THB 1,800,226,000), is included in net gain/(loss) on acquisitions
and disposals of subsidiaries, joint ventures and associates under “Exceptional Items” in the
Group’s profit statement.
Impact of the acquisition on the profit statement
From the acquisition date, GOLD has contributed revenue of S$158,129,000 (approximately
THB 3,663,605,000) and profit for the period of S$36,185,000 (approximately THB
838,347,000) to the Group. If the business combination had taken place at the beginning
of the financial year, GOLD’s contribution to the Group’s revenue and profit for the year
would have been S$745,788,000 (approximately THB 17,278,818,000) and S$115,358,000
(approximately THB 2,672,669,000), respectively.
Provisional accounting for the acquisition of GOLD
The fair value of the net identifiable assets and liabilities as at acquisition date have been
determined on a provisional basis as the final results of the PPA have not been received by
the date that the financial statements are authorised for issue. Goodwill arising from this
acquisition and the carrying amounts of investment properties, property, plant and equipment,
properties held for sale, investments in joint ventures and associates, other payables and
deferred tax liabilities will be adjusted accordingly on a retrospective basis when the PPA is
finalised.
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330 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
37.
ACQUISITIONS/DISPOSALS OF SUBSIDIARIES (CONT’D)
(a)
Acquisitions of Subsidiaries (cont’d)
(i)
Business Combinations (cont’d)
The fair values of the identifiable assets and liabilities of GOLD as at the acquisition date were:
Investment properties
Properties held for sale
Property, plant and equipment
Investments in joint ventures and associates
Deferred tax assets
Intangible assets
Trade and other receivables
Cash and cash equivalents
Borrowings
Deferred tax liabilities
Contract liabilities
Trade and other payables
Total identifiable net assets at fair value
Less: Non-controlling interest at fair value
Less: Initial interest as an associate (Note 14)
Loss on disposal of an associate (Note 14(d))
Gain on acquisition of a subsidiary
Exchange difference
Consideration paid in cash
Less: Cash and cash equivalents of subsidiary acquired
Cash outflow on acquisition, net of cash and cash equivalents acquired
Fair Value
Recognised on
Acquisition
$'000
590,706
1,308,321
152,508
228,563
15,164
2,283
87,002
21,618
2,406,165
(806,758)
(65,776)
(4,730)
(559,634)
969,267
(47,374)
(412,200)
55,033
(77,701)
(1,918)
485,107
(21,618)
463,489
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Annual Report 2019 331
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
37.
ACQUISITIONS/DISPOSALS OF SUBSIDIARIES (CONT’D)
(a)
Acquisitions of Subsidiaries (cont’d)
(ii)
Acquisitions of a Group of Assets and Liabilities
The list of significant acquisitions of subsidiaries accounted for as acquisitions of a group of assets
and liabilities is as follows:
Name of Subsidiary
Cargo Nord Object 3 GmbH & Co OG
Cargo Nord Object 10-12 GmbH & Co OG
Autolog Speditions – und Logistik GmbH & Co OG
GUMES Verwaltung Sechsunddreißigste Vermietungs-GmbH
GUMES Verwaltung Objekt Bielefeld-Sennestadt GmbH
CCP IV Garching S.à.r.l.
System Assets Company Limited
Date acquired
17 October 2018
17 October 2018
17 October 2018
2 November 2018
2 November 2018
2 November 2018
14 August 2019
Effective
Interest
Acquired
100.0%
100.0%
100.0%
93.1%
93.1%
94.0%
100.0%
The cash flows and net assets of subsidiaries acquired are as follows:
Investment properties
Inventories
Trade and other receivables
Cash and cash equivalents
Borrowings
Trade and other payables
Total identifiable net assets at fair value
Less: Non-controlling interest at fair value
Consideration paid in cash
Less: Cash and cash equivalents of subsidiary acquired
Cash outflow on acquisition, net of cash and cash equivalents acquired
(iii)
Acquisition of Additional Interest in Subsidiaries
Fair Value
Recognised on
Acquisition
$'000
237,636
54
3,122
1,677
242,489
(81,903)
(10,899)
149,687
(4,636)
145,051
(1,677)
143,374
On 7 December 2018, the Company acquired 25.0% of the issued and paid-up capital of Frasers
(NZ) Pte. Ltd. (“Frasers NZ”), a company incorporated in Singapore, from the minority shareholder.
Following the completion of the acquisition, Frasers NZ became a wholly-owned subsidiary of the
Company and the Company’s shareholding interest in Frasers NZ increased to 100.0%.
Subsidiaries
Additional
Interests
Carrying
Value of NCI
Acquired
$'000
Consideration
Paid
$
Shortfall
$'000
Frasers (NZ) Pte. Ltd.
25.0%
3,894
1
3,894
The difference between the consideration paid and the carrying value of the subsidiary acquired is
recognised in retained earnings.
19_0111_FPL_FR2019_FS_v18.indd 331
11/12/19 5:43 PM
332 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
37.
ACQUISITIONS/DISPOSALS OF SUBSIDIARIES (CONT’D)
(b)
Disposal of a Subsidiary
(i)
On 28 June 2019, the Group, through its wholly-owned subsidiaries, Frasers Property Aquamarine
Trustee Pte. Ltd. and FCL Aquamarine Pte. Ltd., entered into a unit subscription agreement with a
long-term strategic investor (the “Investor”), where units in Aquamarine Star Trust (“AST”) are issued
to the Investor (“Units Subscription”) for a consideration of $442,706,000.
Pursuant to the Units Subscription, the Group and the Investor each hold 50.0% of the units in issue
in AST, and with effect from 28 June 2019, AST was equity accounted for as a joint venture.
The gain on disposal of AST of $8,323,000 was included in net gain/(loss) on acquisitions and
disposals of subsidiaries, joint ventures and associates under “Exceptional Items” in the Group’s
profit statement.
Effects of disposal
The cash flows and net assets of a subsidiary disposed of are as follows:
Investment properties
Property, plant and equipment
Intangible assets
Deferred tax assets – net
Trade and other receivables
Cash and cash equivalents
Borrowings
Derivative financial instruments
Trade and other payables
Total identifiable net assets at fair value
Less: Equity interests retained as a joint venture (Note 14)
Gain on disposal of a subsidiary
Consideration received in cash
Less: Cash and cash equivalents of subsidiary disposed of
Cash outflow on disposal, net of cash and cash equivalents disposed of
Net Assets
De-recognised
on Disposal
$'000
1,965,000
16
63
11,930
735
7,129
1,984,873
(1,192,434)
(23,840)
(342,538)
426,061
(434,384)
8,323
–
(7,129)
(7,129)
19_0111_FPL_FR2019_FS_v18.indd 332
11/12/19 5:43 PM
Annual Report 2019 333
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
37.
ACQUISITIONS/DISPOSALS OF SUBSIDIARIES (CONT’D)
(b)
Disposal of a Subsidiary (cont’d)
(ii)
On 30 August 2019, the Company divested 100,000 ordinary shares, representing 100.0% of the
issued and paid-up capital of its wholly-owned subsidiary, Frasers Hospitality Investment Holdings
(Philippines) Pte. Ltd. (“FHIHP”), for a consideration of $45,045,000.
The loss on disposal of FHIHP of $329,000 is included in net gain/(loss) on acquisitions and disposals of
subsidiaries, joint ventures and associates under “Exceptional Items” in the Group’s profit statement.
Effects of disposal
The cash flows and net assets of a subsidiary disposed of are as follows:
Investment properties
Property, plant and equipment
Intangible assets
Trade and other receivables
Cash and cash equivalents
Trade and other payables
Deferred tax liabilities
Total identifiable net assets at fair value
Loss on disposal of a subsidiary
Consideration received in cash
Less: Cash and cash equivalents of subsidiary disposed of
Cash inflow on disposal, net of cash and cash equivalents disposed of
Net Assets
De-recognised
on Disposal
$'000
45,007
1,189
77
6,589
309
53,171
(621)
(7,176)
45,374
(329)
45,045
(309)
44,736
38.
SUBSEQUENT EVENTS
On 1 October 2019, the Company announced that an aggregate of 69,714 shares in the capital of PGIM ARF were
redeemed pursuant to the bye-laws of PGIM ARF (the “Redemption”). Following the Redemption, the stake held
by the Company’s wholly-owned subsidiary, FPI Bermuda, in PGIM ARF has increased from approximately 53.7%
to approximately 63.1%. FCT had also announced on 1 October 2019 that following the Redemption, the stake
held by its wholly-owned subsidiary, FCT Holdings (Sigma) Pte. Ltd., in PGIM ARF has increased from approximately
21.1% to approximately 24.8%.
19_0111_FPL_FR2019_FS_v18.indd 333
11/12/19 5:43 PM
334 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
39.
SIGNIFICANT SUBSIDIARIES, JOINT ARRANGEMENTS AND ASSOCIATES
Principal Activities
Effective
Interest
2019
%
2018
%
Subsidiaries of the Company
Country of Incorporation and Place of Business: Singapore
(a)
Frasers Commercial Asset Management Ltd
Asset management, fund
and property management
and related advisory services
100.0
100.0
(a)
(a)
(a)
(a)
(a)
(a)
(a)
(a)
(a)
(a)
(a)
(a)
Frasers Property Treasury Pte. Ltd.
Financial services
100.0
100.0
FCL (China) Pte. Ltd.
Investment holding
100.0
100.0
FCL Amber Pte. Ltd.
Investment holding
100.0
100.0
FCL Imperial Pte. Ltd.
Investment holding
100.0
100.0
FCL Tampines Court Pte. Ltd.
Investment holding
100.0
100.0
FCL Topaz Pte. Ltd.
Investment holding
100.0
100.0
Frasers (Australia) Pte. Ltd.
Investment holding
100.0
100.0
Frasers (Thailand) Pte. Ltd.
Investment holding
100.0
100.0
Frasers (UK) Pte. Ltd.
Investment holding
100.0
100.0
Frasers Amethyst Pte. Ltd.
Investment holding
100.0
100.0
Frasers Hospitality Asset
Management Pte. Ltd.
Frasers Hospitality Changi
Investments Pte. Ltd.
Investment holding
100.0
100.0
Investment holding
100.0
100.0
(a)
Frasers Hospitality Dalian
Investment holding
100.0
100.0
Holding Pte. Ltd.
(a)
Frasers Hospitality Holdings
Investment holding
100.0
100.0
(Europe) Pte. Ltd.
(a)
(a)
Frasers Hospitality Holdings Pte. Ltd.
Investment holding
100.0
100.0
Frasers Hospitality Investments
Investment holding
100.0
100.0
China Square Pte. Ltd.
(a)
Frasers Hospitality Investments
Investment holding
100.0
100.0
Melbourne Pte. Ltd.
(a)
(a)
Frasers Hospitality ML Pte. Ltd.
Investment holding
100.0
100.0
Frasers Land Pte. Ltd.
Investment holding
100.0
100.0
19_0111_FPL_FR2019_FS_v18.indd 334
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 335
39.
SIGNIFICANT SUBSIDIARIES, JOINT ARRANGEMENTS AND ASSOCIATES (CONT’D)
Principal Activities
Effective
Interest
2019
%
2018
%
Subsidiaries of the Company (cont’d)
Country of Incorporation and Place of Business: Singapore (cont'd)
(a)
(a)
(a)
(a)
Frasers Property (Singapore) Pte. Ltd.
Investment holding
100.0
100.0
Frasers Property Commercial
Trust Holdings Pte. Ltd.
Investment holding
100.0
100.0
Frasers Property Development (China) Pte. Ltd.
Investment holding
100.0
100.0
Frasers Property Holdings
(Vietnam) Pte. Ltd.
Investment holding
100.0
100.0
(a)
Frasers Property Hospitality Trust
Investment holding
100.0
100.0
Holdings Pte. Ltd.
(a)
Frasers Property Industrial Trust
Investment holding
100.0
100.0
Holdings Pte. Ltd.
(a)
(a)
Frasers Property International Pte. Ltd.
Investment holding
100.0
100.0
Frasers Property Retail Trust
Holdings Pte. Ltd.
Investment holding
100.0
100.0
(a)
Frasers Hospitality Pte. Ltd.
Investment holding and
management services
100.0
100.0
(a)
Frasers Logistics & Industrial
Asset Management Pte. Ltd.
Management and
consultancy services
100.0
100.0
(a)
Frasers Centrepoint Asset
Management Ltd.
Management services
100.0
100.0
(a)
Frasers Hospitality International
Management services
100.0
100.0
Pte. Ltd.
(a)
Frasers Property Corporate
Management services
100.0
100.0
Services Pte. Ltd.
(a)
(a)
Riverside Property Pte. Ltd.
Property investment
100.0
100.0
Frasers Property Management
Services Pte. Ltd.
Provision of management
services relating to
property management
100.0
100.0
Country of Incorporation and Place of Business: Hong Kong
(a)
Excellent Esteem Limited
Investment holding
100.0
100.0
19_0111_FPL_FR2019_FS_v18.indd 335
11/12/19 5:43 PM
336 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
39.
SIGNIFICANT SUBSIDIARIES, JOINT ARRANGEMENTS AND ASSOCIATES (CONT’D)
Principal Activities
Subsidiaries of the Group
Country of Incorporation and Place of Business: Singapore
(a)
(a)
(a)
(a)
Frasers Centrepoint Trust
Real estate investment trust
Frasers Commercial Trust
Real estate investment trust
Frasers Logistics & Industrial Trust
Real estate investment trust
Frasers Hospitality Trust
Stapled trust
Country of Incorporation and Place of Business: Thailand
Effective
Interest
2019
%
2018
%
36.4
25.7
19.2
24.6
41.9
25.2
20.7
23.6
(a)
Frasers Property (Thailand) Public
Investment holding
58.6
64.7
Company Limited
(formerly known as TICON Industrial
Connection Public Company Limited)
(a)
Golden Land Property Development
Investment holding
55.6
39.9
Public Company Limited
Associates of the Group
Country of Incorporation and Place of Business: China
(b)
Shanghai Zhong Jun Property Real
Estate Development Co., Ltd.
Property development
45.2
45.2
Country of Incorporation and Place of Business: Thailand
(a)
Golden Ventures Leasehold Real Estate
Investment Trust
(a)
Frasers Property Thailand Industrial
Freehold & Leasehold Real Estate
Investment Trust
(formerly known as TICON Freehold and
Leasehold Real Estate Investment Trust)
Joint Arrangements of the Group
Investing in property
leasehold rights and
related equipment
Investing in properties
and/or leasehold rights
in properties
12.6
9.0
13.7
15.2
Country of Incorporation and Place of Business: Singapore
(a)
Aquamarine Star Trust
Investment holding
50.0
100.0
(a)
(b)
Audited by KPMG in the respective countries.
Audited by other firms.
19_0111_FPL_FR2019_FS_v18.indd 336
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 337
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS
In December 2017, the Accounting Standards Council (ASC) issued the Singapore Financial Reporting Standards
(International) (SFRS(I)). Singapore-incorporated companies that have issued, or are in the process of issuing, equity
or debt instruments for trading in a public market in Singapore, will apply SFRS(I)s with effect from annual periods
beginning on or after 1 October 2018.
As stated in Note 2.1, these are the first financial statements of the Group prepared in accordance with SFRS(I).
The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended
30 September 2019, the comparative information presented in these financial statements for the year ended 30
September 2018 and in the preparation of the opening SFRS(I) balance sheet at 1 October 2017 (the Group’s date
of transition), subject to the mandatory exceptions and optional exemptions under SFRS(I) 1.
In preparing the opening SFRS(I) balance sheet, the Group has adjusted amounts reported previously in the financial
statements prepared in accordance with previous FRS.
In addition to the adoption of the new framework, the Group also concurrently applied the following SFRS(I)s,
interpretations of SFRS(I)s and requirements of SFRS(I)s which are mandatorily effective from the same date.
•
•
•
•
•
•
•
SFRS(I) 15 Revenue from Contracts with Customers;
SFRS(I) 9 Financial Instruments;
Amendments to SFRS(I) 2 – Share-based Payment;
Amendments to SFRS(I) 40 – Investment Property;
Amendments to SFRS(I) 1 – First-time Adoption of Singapore Financial Reporting Standards (International);
Amendments to SFRS(I) 1 – 28 Investments in Associates and Joint Ventures; and
SFRS(I) INT 22 Foreign Currency Transactions and Advance Consideration.
The application of the above standards and interpretations do not have material effect on the financial statements,
except for SFRS(I) 15.
An explanation of how the transition from previous FRS to SFRS(I) and the adoption of SFRS(I) 9 and SFRS(I) 15
have affected the Group’s financial position, financial performance and cash flows is set out under the summary of
quantitative impact and the accompanying notes.
Summary of Quantitative Impact
The following reconciliations summarise the impacts on initial application of SFRS(I) 1, SFRS(I) 9 and SFRS(I) 15
on the Group’s financial positions as at 1 October 2017, 30 September 2018 and 1 October 2018 and the Group’s
profit statement and other comprehensive income for the year ended 30 September 2018. There were no material
adjustments to the Group’s statement of cash flows for the year ended 30 September 2018 arising on the transition
to SFRS(I).
19_0111_FPL_FR2019_FS_v18.indd 337
11/12/19 5:43 PM
338 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
CONSOLIDATED BALANCE SHEET
30 September 2018
1 October 2018
Note
NON-CURRENT ASSETS
Investment properties
Property, plant and equipment
Investments in:
– Joint ventures
– Associates
Other non-current assets
Intangible assets
Other receivables
Deferred tax assets
Derivative financial instruments
CURRENT ASSETS
Properties held for sale
Contract assets
Other current assets
Trade and other receivables
Derivative financial instruments
Bank deposits
Cash and cash equivalents
Assets held for sale
b(v)
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Contract liabilities
Derivative financial instruments
Provision for taxation
Loans and borrowings
b(v)
NET CURRENT ASSETS
NON-CURRENT LIABILITIES
Other payables
Derivative financial instruments
Deferred tax liabilities
Loans and borrowings
NET ASSETS
SHARE CAPITAL AND RESERVES
Share capital
Retained earnings
Other reserves
Equity attributable to Owners
of the Company
NON-CONTROLLING INTERESTS
– PERPETUAL SECURITIES
NON-CONTROLLING INTERESTS
– OTHERS
TOTAL EQUITY
Current
SFRS(I) 1
and
framework reclassification
$'000
$'000
SFRS(I) 15
$'000
Others(1)
$'000
SFRS(I)
framework
$'000
SFRS(I)
SFRS(I) 9 framework
$'000
$'000
20,644,479
2,116,054
222,729
969,824
14,268
700,578
385,824
60,803
29,830
25,144,389
4,156,966
–
59,765
463,901
10,727
448,743
2,136,448
–
7,276,550
32,420,939
1,929,873
–
12,194
201,756
2,642,943
4,786,766
2,489,784
27,634,173
154,553
35,943
532,396
12,283,207
13,006,099
14,628,074
–
–
–
–
–
–
–
–
–
–
–
–
112,000
–
20,756,479
2,116,054
– 20,756,479
2,116,054
–
3,695
–
(743)
–
–
–
–
2,952
–
–
–
–
–
–
–
112,000
226,424
969,824
13,525
700,578
385,824
60,803
29,830
25,259,341
–
(42)
–
–
–
67
–
226,424
969,782
13,525
700,578
385,824
60,870
29,830
25 25,259,366
(13,357)
–
–
–
–
–
–
13,357
–
–
(182,005)
–
–
182,005
–
–
–
–
–
–
–
–
–
–
(289,784)
367,963
16,467
(77,855)
–
–
–
–
16,791
19,743
(237,625)
239,241
–
–
–
1,616
15,175
18,127
–
–
1
(4,172)
–
–
13,554
–
9,383
121,383
3,853,825
367,963
76,233
381,874
10,727
448,743
2,150,002
13,357
7,302,724
32,562,065
2,294
–
–
1,512
–
3,806
5,577
117,577
1,512,537
239,241
12,194
385,273
2,642,943
4,792,188
2,510,536
27,769,877
–
–
3,993
–
3,993
–
–
–
19,550
19,550
154,553
35,943
536,389
12,302,757
13,029,642
–
–
–
(339)
–
–
3,853,825
367,963
76,233
381,535
10,727
448,743
(259) 2,149,743
13,357
(598) 7,302,126
(573) 32,561,492
–
–
–
–
–
–
–
1,512,537
239,241
12,194
385,273
2,642,943
4,792,188
(598) 2,509,938
(573) 27,769,304
154,553
–
35,943
–
–
536,389
– 12,302,757
– 13,029,642
14,134
98,027
14,740,235
(573) 14,739,662
1,784,732
6,015,778
(438,459)
–
(394,294)
394,294
–
15,566
(1,432)
–
92,852
–
1,784,732
5,729,902
(45,597)
–
1,784,732
(553) 5,729,349
(45,616)
(19)
7,362,051
2,037,819
9,399,870
5,228,204
14,628,074
–
–
–
–
–
14,134
92,852
7,469,037
(572) 7,468,465
–
–
2,037,819
–
2,037,819
14,134
92,852
9,506,856
(572) 9,506,284
–
14,134
5,175
98,027
5,233,379
14,740,235
(1) 5,233,378
(573) 14,739,662
Certain financial statement line items have been reclassified to conform with current year’s presentation.
(1) Others pertain to consolidation of MCST 1298 (Note 13)
19_0111_FPL_FR2019_FS_v18.indd 338
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 339
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
CONSOLIDATED BALANCE SHEET (cont’d)
Note
b(v)
b(v)
NON-CURRENT ASSETS
Investment properties
Property, plant and equipment
Investments in:
– Joint ventures
– Associates
Other non-current assets
Intangible assets
Other receivables
Deferred tax assets
Derivative financial instruments
CURRENT ASSETS
Properties held for sale
Contract assets
Other current assets
Trade and other receivables
Derivative financial instruments
Bank deposits
Cash and cash equivalents
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Contract liabilities
Derivative financial instruments
Provision for taxation
Loans and borrowings
NET CURRENT ASSETS
NON-CURRENT LIABILITIES
Other payables
Derivative financial instruments
Deferred tax liabilities
Loans and borrowings
NET ASSETS
SHARE CAPITAL AND RESERVES
Share capital
Retained earnings
Other reserves
Equity attributable to Owners
of the Company
NON-CONTROLLING INTERESTS
– PERPETUAL SECURITIES
NON-CONTROLLING INTERESTS
– OTHERS
TOTAL EQUITY
Current
SFRS(I) 1
and
framework reclassification
$'000
$'000
1 October 2017
SFRS(I) 15
$'000
Others(1)
$'000
SFRS(I)
framework
$'000
15,817,282
2,240,724
265,561
1,166,096
6,125
763,140
238,692
34,842
4,279
20,536,741
3,452,219
–
131,746
478,582
604
272,205
2,137,275
6,472,631
27,009,372
1,611,206
–
15,051
159,656
1,571,718
3,357,631
3,115,000
23,651,741
130,910
87,703
327,803
10,056,126
10,602,542
13,049,199
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(130,387)
–
–
130,387
–
–
–
–
–
–
–
–
–
–
1,774,771
5,590,746
(210,839)
–
(394,294)
394,294
–
–
5,502
–
–
–
–
–
–
5,502
(99,500)
128,095
37,453
(20,019)
–
–
–
46,029
51,531
(149,461)
150,724
–
–
–
1,263
44,766
50,268
–
–
10,111
–
10,111
40,157
–
40,157
–
97,000
–
15,914,282
2,240,724
–
–
–
–
–
–
–
97,000
–
–
104
(2,911)
–
–
11,939
9,132
106,132
1,447
–
–
1,926
20,000
23,373
(14,241)
82,759
271,063
1,166,096
6,125
763,140
238,692
34,842
4,279
20,639,243
3,352,719
128,095
169,303
455,652
604
272,205
2,149,214
6,527,792
27,167,035
1,332,805
150,724
15,051
291,969
1,591,718
3,382,267
3,145,525
23,784,768
–
–
–
–
–
82,759
130,910
87,703
337,914
10,056,126
10,612,653
13,172,115
–
77,595
–
1,774,771
5,314,204
183,455
7,154,678
1,698,093
8,852,771
4,196,428
13,049,199
–
–
–
–
–
40,157
77,595
7,272,430
–
–
1,698,093
40,157
77,595
8,970,523
–
40,157
5,164
82,759
4,201,592
13,172,115
Certain financial statement line items have been reclassified to conform with current year’s presentation.
(1) Others pertain to consolidation of MCST 1298 (Note 13)
19_0111_FPL_FR2019_FS_v18.indd 339
11/12/19 5:43 PM
340 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
CONSOLIDATED BALANCE SHEET
CONSOLIDATED PROFIT STATEMENT
Year ended 30 September 2018
FRS
$'000
SFRS(I) 15
$'000
Others(1)
$'000
SFRS(I)
framework
$'000
SFRS(I) 1
and
framework reclassification
$'000
30 September 2018
1 October 2018
Current
SFRS(I) 1 and
SFRS(I)
SFRS(I)
Note
framework
reclassification
SFRS(I) 15
framework
SFRS(I) 9
framework
$'000
$'000
$'000
$'000
$'000
$'000
20,644,479
2,116,054
112,000
20,756,479
2,116,054
20,756,479
2,116,054
25,144,389
112,000
2,952
25,259,341
25
25,259,366
(42)
67
(339)
(598)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
226,424
969,782
13,525
700,578
385,824
60,870
29,830
3,853,825
367,963
76,233
381,535
10,727
448,743
1,512,537
239,241
12,194
385,273
2,642,943
4,792,188
2,509,938
154,553
35,943
536,389
12,302,757
13,029,642
(259)
2,149,743
13,357
(598)
(573)
7,302,126
32,561,492
226,424
969,824
13,525
700,578
385,824
60,803
29,830
3,853,825
367,963
76,233
381,874
10,727
448,743
2,150,002
13,357
7,302,724
32,562,065
1,512,537
239,241
12,194
385,273
2,642,943
4,792,188
2,510,536
154,553
35,943
536,389
12,302,757
13,029,642
NON-CURRENT ASSETS
Investment properties
Property, plant and equipment
Investments in:
– Joint ventures
– Associates
Other non-current assets
Intangible assets
Other receivables
Deferred tax assets
Derivative financial instruments
CURRENT ASSETS
Properties held for sale
Contract assets
Other current assets
Trade and other receivables
Derivative financial instruments
Bank deposits
Cash and cash equivalents
Assets held for sale
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Contract liabilities
Derivative financial instruments
Provision for taxation
Loans and borrowings
NON- CURRENT LIABILITIES
Other payables
Derivative financial instruments
Deferred tax liabilities
Loans and borrowings
SHARE CAPITAL AND RESERVES
Share capital
Retained earnings
Other reserves
Equity attributable to Owners of
the Company
NON-CONTROLLING INTERESTS
– PERPETUAL SECURITIES
NON-CONTROLLING INTERESTS –
OTHERS
TOTAL EQUITY
4,156,966
(13,357)
(4,172)
13,554
13,357
9,383
121,383
1,929,873
(179,711)
b(v)
b(v)
222,729
969,824
14,268
700,578
385,824
60,803
29,830
59,765
463,901
10,727
448,743
2,136,448
7,276,550
32,420,939
–
–
–
12,194
201,756
2,642,943
4,786,766
2,489,784
154,553
35,943
532,396
12,283,207
13,006,099
–
–
–
–
–
–
–
–
–
1
–
–
–
–
–
–
–
–
–
–
3,695
(743)
(289,784)
367,963
16,467
(77,855)
16,791
19,743
(237,625)
239,241
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
183,517
3,806
5,577
1,616
15,175
19,550
19,550
3,993
3,993
NET ASSETS
14,628,074
98,027
14,134
14,740,235
(573)
14,739,662
1,784,732
6,015,778
(438,459)
(301,442)
394,294
15,566
(1,432)
1,784,732
5,729,902
(45,597)
–
(553)
(19)
1,784,732
5,729,349
(45,616)
7,362,051
92,852
14,134
7,469,037
(572)
7,468,465
2,037,819
9,399,870
92,852
14,134
2,037,819
9,506,856
–
(572)
2,037,819
9,506,284
NET CURRENT ASSETS
27,634,173
117,577
18,127
27,769,877
(573)
27,769,304
REVENUE
Cost of sales
GROSS PROFIT
Other income/(losses)
Administrative expenses
4,311,609
(2,891,564)
1,420,045
(4,331)
(378,001)
–
64,924
64,924
–
–
9,263
(17,995)
(8,732)
–
–
–
–
4,320,872
(2,844,635)
–
–
168
1,476,237
(4,331)
(377,833)
TRADING PROFIT
Share of results of joint ventures and associates,
1,037,713
64,924
(8,732)
168
1,094,073
net of tax
240,959
–
(1,807)
–
239,152
PROFIT BEFORE INTEREST, FAIR VALUE CHANGE,
TAXATION AND EXCEPTIONAL ITEMS
Interest income
Interest expense
NET INTEREST EXPENSE
PROFIT BEFORE FAIR VALUE CHANGE, TAXATION
AND EXCEPTIONAL ITEMS
Fair value change on investment properties
1,278,672
36,205
(316,325)
(280,120)
998,552
636,891
PROFIT BEFORE TAXATION AND EXCEPTIONAL ITEMS
Exceptional items
1,635,443
(158,523)
PROFIT BEFORE TAXATION
Taxation
PROFIT FOR THE YEAR
ATTRIBUTABLE PROFIT:
– before fair value change and exceptional items
– fair value change
– exceptional items
Non-controlling interests
PROFIT FOR THE YEAR
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to
profit statement:
Net fair value change of cash flow hedges
Foreign currency translation
Share of other comprehensive income of joint
ventures and associates
Other comprehensive income for the year, net of
tax
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
ATTRIBUTABLE TO:
– shareholders of the Company
– holders of perpetual securities
– non-controlling interests
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
1,476,920
(281,637)
1,195,283
507,219
387,779
(136,036)
758,962
436,321
1,195,283
27,102
(400,051)
1,372
(371,577)
823,706
442,992
82,670
298,044
823,706
64,924
–
–
–
64,924
–
64,924
–
64,924
(64,924)
(10,539)
–
(19,556)
(19,556)
(30,095)
–
(30,095)
–
(30,095)
5,504
168
–
–
–
1,333,225
36,205
(335,881)
(299,676)
168
15,100
1,033,549
651,991
15,268
–
1,685,540
(158,523)
15,268
–
1,527,017
(341,057)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(24,591)
15,268
1,185,960
(24,591)
–
–
(24,591)
–
157
15,100
–
15,257
11
482,785
402,879
(136,036)
749,628
436,332
(24,591)
15,268
1,185,960
–
(1,432)
–
(1,432)
–
–
–
–
27,102
(401,483)
1,372
(373,009)
(26,023)
15,268
812,951
(26,023)
–
–
(26,023)
15,257
–
11
15,268
432,226
82,670
298,055
812,951
Certain financial statement line items have been reclassified to conform with current year’s presentation.
(1) Others pertain to consolidation of MCST 1298 (Note 13)
5,228,204
14,628,074
5,175
98,027
5,233,379
14,134
14,740,235
(1)
5,233,378
(573)
14,739,662
Certain financial statement line items have been reclassified to conform with current year’s presentation.
19_0111_FPL_FR2019_FS_v18.indd 340
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Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 341
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
Explanation of Transition to SFRS(I)
(a)
SFRS(I) 1
In adopting SFRS(I) in 2018, the Group has applied the transition requirements in SFRS(I) 1 with 1 October
2017 as the date of transition. SFRS(I) 1 generally requires that the Group applies SFRS(I) that are effective
as at 30 September 2019 on a retrospective basis, as if such accounting policy had always been applied,
subject to the mandatory exceptions and optional exemptions in SFRS(I) 1. Except as described below,
the application of the mandatory exceptions and the optional exemptions in SFRS(I) 1 did not have any
significant impact on the financial statements.
Foreign currency translation reserve (FCTR)
The Group considers that restating FCTR to comply with current SFRS(I) 1-21 The Effects of Changes in
Foreign Exchange Rates may not be practicable as certain acquisitions and disposals were transacted at
dates that preceded the statutory record keeping periods.
The Group elected the optional exemption in SFRS(I) 1 to reset its cumulative FCTR for all foreign operations
to nil at the date of transition, and reclassified the cumulative deficit in FCTR of $394,294,000 as at 1
October 2017 determined in accordance with FRS at that date to accumulated profits. After the date of
transition, any gain or loss on disposal of any foreign operations will exclude translation differences that
arose before the date of transition.
By electing this optional exemption, the cumulative FCTR increased by $394,294,000 and accumulated
profits decreased by the same amount as at 1 October 2017.
(b)
SFRS(I) 15
1,611,206
(128,940)
SFRS(I) 15 establishes a comprehensive framework for determining whether, how much and when revenue
is recognised. It also introduces new cost guidance which requires certain costs of obtaining and fulfilling
contracts to be recognised as separate assets when specified criteria are met.
The Group adopted SFRS(I) 15 in its financial statements using the retrospective approach. All requirements
of SFRS(I) 15 have been applied retrospectively, except for the application of the practical expedients as
described below, and the comparative information presented for 2018 has been restated.
The Group have applied the following practical expedients as allowed under SFRS(I) 1:
•
•
completed contracts that began and ended in the same annual reporting period in the comparative
reporting period and contracts completed at 1 October 2017 are not restated.
for the year ended 30 September 2018, the Group did not disclose the amount of the transaction
price allocated to the remaining performance obligations and an explanation of when the Group
expects to recognise that amount as revenue.
CONSOLIDATED BALANCE SHEET
Current
SFRS(I) 1 and
SFRS(I)
Note
framework
reclassification
SFRS(I) 15
framework
$'000
$'000
$'000
$'000
1 October 2017
NON-CURRENT ASSETS
Investment properties
Property, plant and equipment
Investments in:
– Joint ventures
– Associates
Other non-current assets
Intangible assets
Other receivables
Deferred tax assets
Derivative financial instruments
CURRENT ASSETS
Properties held for sale
Contract assets
Other current assets
Trade and other receivables
Derivative financial instruments
Bank deposits
Cash and cash equivalents
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Contract liabilities
Derivative financial instruments
Provision for taxation
Loans and borrowings
NET CURRENT ASSETS
NON-CURRENT LIABILITIES
Other payables
Derivative financial instruments
Deferred tax liabilities
Loans and borrowings
SHARE CAPITAL AND RESERVES
NET ASSETS
Share capital
Retained earnings
Other reserves
20,536,741
97,000
5,502
20,639,243
b(v)
b(v)
15,817,282
2,240,724
265,561
1,166,096
6,125
763,140
238,692
34,842
4,279
3,452,219
–
131,746
478,582
604
272,205
2,137,275
6,472,631
27,009,372
–
15,051
159,656
1,571,718
3,357,631
3,115,000
130,910
87,703
327,803
10,056,126
10,602,542
13,049,199
1,774,771
5,590,746
(210,839)
1,698,093
8,852,771
4,196,428
13,049,199
15,914,282
2,240,724
271,063
1,166,096
6,125
763,140
238,692
34,842
4,279
3,352,719
128,095
169,303
455,652
604
272,205
2,149,214
6,527,792
27,167,035
1,332,805
150,724
15,051
291,969
1,591,718
3,382,267
3,145,525
130,910
87,703
337,914
10,056,126
10,612,653
13,172,115
1,774,771
5,314,204
183,455
97,000
5,502
104
(2,911)
11,939
9,132
106,132
132,313
20,000
23,373
(14,241)
(99,500)
128,095
37,453
(20,019)
46,029
51,531
(149,461)
150,724
1,263
44,766
10,111
10,111
40,157
82,759
(316,699)
394,294
40,157
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
23,651,741
82,759
50,268
23,784,768
Equity attributable to Owners of the Company
7,154,678
77,595
40,157
7,272,430
NON-CONTROLLING INTERESTS
– PERPETUAL SECURITIES
NON-CONTROLLING INTERESTS – OTHERS
TOTAL EQUITY
–
77,595
5,164
82,759
40,157
1,698,093
8,970,523
4,201,592
40,157
13,172,115
Certain financial statement line items have been reclassified to conform with current year’s presentation.
19_0111_FPL_FR2019_FS_v18.indd 341
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342 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
Explanation of Transition to SFRS(I) (cont’d)
(b)
SFRS(I) 15 (cont’d)
The impact upon the adoption of SFRS(I) 15, including the corresponding tax effects, are described below.
(i)
Success-based sales commissions
The Group pay sales commissions to both external and internal property sales agents for securing
property sales contracts for the Group on a success basis. The Group previously recognised such
sales commissions as expense when incurred. Under SFRS(I) 15, the Group capitalises such costs
as incremental costs of obtaining a contract as they are expected to be recovered. The capitalised
costs are amortised consistently with the pattern of revenue recognised for the related contract. The
impact to the financial statements is as follows:
Consolidated Balance Sheet
Increase in contract costs
Decrease in prepayments
Increase in investments in joint ventures
Increase in deferred tax liabilities
Increase in retained earnings
Decrease in other reserves
Consolidated Profit Statement
30 September
2018
$'000
1 October
2017
$'000
16,467
(743)
4,872
(4,104)
(18,000)
1,508
37,453
–
5,502
(9,071)
(33,884)
–
Increase in cost of sales
Decrease in share of results of joint ventures and associates, net of tax
Decrease in taxation
Decrease in profit for the year
Year ended
30 September
2018
$'000
(19,574)
(630)
4,320
(15,884)
19_0111_FPL_FR2019_FS_v18.indd 342
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Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 343
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
Explanation of Transition to SFRS(I) (cont’d)
(b)
SFRS(I) 15 (cont’d)
(ii)
Amortisation of development costs
The Group previously recognised cost of sales on the sold units in its development projects by
applying the percentage of completion on the relevant projects. On adoption of SFRS(I) 15, the Group
recognises such costs in profit or loss when incurred to the extent of units sold in a development
project.
Consolidated Balance Sheet
Increase in development properties
Increase in investments in joint ventures
Decrease in trade and other receivables
Increase in deferred tax liabilities
Increase in retained earnings
Increase in other reserves
Consolidated Profit Statement
Increase in revenue
Increase in cost of sales
Increase in share results of joint ventures and associates, net of tax
Decrease in taxation
Decrease in profit for the year
30 September
2018
$'000
1 October
2017
$'000
1,058
2,979
–
(184)
(3,777)
(76)
15,688
–
(8,375)
(1,040)
(6,273)
–
Year ended
30 September
2018
$'000
7,779
(14,143)
2,979
889
(2,496)
19_0111_FPL_FR2019_FS_v18.indd 343
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344 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
Explanation of Transition to SFRS(I) (cont’d)
(b)
SFRS(I) 15 (cont’d)
(iii)
Borrowing costs
Arising from the agenda decision issued by the IFRS Interpretation Committee (IFRIC) relating to the
capitalisation of borrowing costs for the construction of a residential multi-unit estate development
where revenue is recognised over time, the Group has ceased capitalisation of borrowing costs on its
development properties.
Consolidated Balance Sheet
Decrease in development properties
Decrease in investments in joint ventures
Decrease in provision for taxation
Decrease in retained earnings
Consolidated Profit Statement
Decrease in cost of sales
Decrease in share of results of joint ventures and associates, net of tax
Decrease in taxation
Increase in interest expense
Decrease in profit for the year
30 September
2018
$'000
(2,350)
(4,156)
295
6,211
Year ended
30 September
2018
$'000
17,206
(4,156)
295
(19,556)
(6,211)
19_0111_FPL_FR2019_FS_v18.indd 344
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 345
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
Explanation of Transition to SFRS(I) (cont’d)
(b)
SFRS(I) 15 (cont’d)
(iv)
Significant financing components arising from payments from customers from sale of development
properties
The Group receives payments from customers for the sale of development properties. Under certain
payment arrangements, the time when payments are made by the buyers and the transfer of control
of the properties to the buyers do not coincide and where the difference between the timing of
receipt of the payments and the transfer of goods and services is 12 months or more, there may exist
a significant financing component arising from payments from buyers. As a result of the adoption of
SFRS(I) 15, a finance income or finance expense will be recognised depending on the arrangement.
Consolidated Balance Sheet
Increase in contract assets
Increase in contract liabilities
Consolidated Profit Statement
Increase in revenue
Increase in cost of sales
Increase in profit for the year
(v)
Presentation of contract assets and liabilities
30 September
2018
$'000
1,616
(1,616)
30 September
2018
$'000
1,484
(1,484)
–
On adopting SFRS(I) 15, the Group has also changed the presentation of the following amounts in
the balance sheet:
(a)
Contract assets in respect of the property development business which relate primarily to the
Group’s right to consideration for work completed but not billed at the reporting date.
As at 30 September 2018, $77,855,000 (1 October 2017: $11,644,000) and $288,492,000
(2017: $115,188,000) which was presented as “Sales proceeds and progress billing
receivables” under Trade and other receivables and development properties, respectively, has
been reclassified to contract assets.
(b)
Contract liabilities in respect of the property development business which relate mainly to
advance consideration from customers and progress billings in excess of the Group’s right to
the consideration.
As at 30 September 2018, $237,624,000 (1 October 2017: $149,461,000) which was
presented as “Progress billings received in advance” under Trade and other payables has been
reclassified to contract liabilities.
19_0111_FPL_FR2019_FS_v18.indd 345
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346 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
Explanation of Transition to SFRS(I) (cont’d)
(c)
SFRS(I) 9
SFRS(I) 9 sets out requirements for recognising and measuring financial assets, financial liabilities and some
contracts to buy or sell non-financial items. It also introduces a new ‘expected credit loss’ (ECL) model and a
new general hedge accounting model. The Group adopted SFRS(I) 9 from 1 October 2018.
In accordance with the exemption in SFRS(I) 1, the Group elected not to restate information for 2018.
Accordingly, the information presented for 2018 is presented, as previously reported, under FRS 39 Financial
Instruments: Recognition and Measurement. Differences in the carrying amounts of financial assets and
financial liabilities resulting from the adoption of SFRS(I) 9 are recognised in retained earnings and reserves
as at 1 October 2018.
Arising from this election, the Group is exempted from providing disclosures required by SFRS(I) 7 Financial
Instruments: Disclosures for the comparative period to the extent that these disclosures relate to items
within the scope of SFRS(I) 9. Instead, disclosures under SFRS(I) 7 relating to items within the scope of FRS
39 are provided for the comparative period.
Changes in accounting policies resulting from the adoption of SFRS(I) 9 Financial Instruments: Disclosures
have been generally applied by the Group retrospectively, except as described below.
•
The following assessments were made on the basis of facts and circumstances that existed at 1
October 2018:
–
–
–
–
the determination of the business model within which a financial asset is held.
the determination of whether the contractual terms of a financial asset give rise to cash flows
that are solely payments of principal and interest on the principal amount outstanding.
the designation of an investment in equity instruments that is not held for trading as being a
financial asset at FVOCI.
the designation and revocation of previous designations of certain financial assets and
financial liabilities measured at FVTPL.
•
New hedge accounting requirements are applied prospectively. All hedging relationships designated
under FRS 39 at 30 September 2018 met the criteria for hedge accounting under SFRS(I) 9 at 1
October 2018 and therefore were regarded as continuing hedging relationships.
19_0111_FPL_FR2019_FS_v18.indd 346
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 347
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
Explanation of Transition to SFRS(I) (cont’d)
(c)
SFRS(I) 9 (cont’d)
The impact upon adoption of SFRS(I) 9, including the corresponding tax effects, are described below.
(i)
Classification and measurement of financial assets
SFRS(I) 9 contains three principal classification categories for financial assets: measured at amortised
cost, FVOCI and FVTPL. The classification of financial assets under SFRS(I) 9 is generally based on the
business model in which financial assets are managed and their contractual cash flow characteristics.
SFRS(I) 9 eliminates the previous categories under FRS 39 Financial Instruments: Recognition and
measurement of held to maturity, loans and receivables and available for sale. Under SFRS(I) 9,
derivatives embedded in contracts where the host is a financial asset in the scope of the standard
are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification.
SFRS(I) 9 largely retains the existing requirements in FRS 39 for the classification and measurement
of financial liabilities.
The adoption of SFRS(I) 9 has not had a significant effect on the Group’s accounting policies related
to financial liabilities and derivative financial instruments.
For financial assets held by the Group on 1 October 2018, management has assessed the business
model that are applicable on that date to those assets so as to classify them into the appropriate
categories under SFRS(I) 9. Material reclassifications resulting from management’s assessment are
disclosed below.
Original
classification
under FRS 39
Note
New
classification
under
SFRS(I) 9
1 October 2018
Original
carrying
amount
under
FRS 39
$'000
New
carrying
amount
under
SFRS(I) 9
$'000
Financial assets
Equity investments
(a)
Available-
for-sale
FVOCI – equity
investment
8,475
8,475
Trade and other
receivables
Cash and cash
equivalents
(b)
(b)
Loans and
receivables
Amortised
cost
Loans and
receivables
Amortised
cost
845,214
845,214
2,598,486
2,598,486
Total financial assets
3,452,175
3,452,175
19_0111_FPL_FR2019_FS_v18.indd 347
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348 Frasers Property Limited
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
40.
EXPLANATION OF TRANSITION TO SFRS(I) AND ADOPTION OF NEW ACCOUNTING STANDARDS (CONT’D)
Explanation of Transition to SFRS(I) (cont’d)
(c)
SFRS(I) 9 (cont’d)
(i)
Classification and measurement of financial assets (cont’d)
(a)
These equity investments represent investments that the Group intends to hold for the long
term for strategic purposes. The Group has designated these investments at 1 October 2018
as measured at FVOCI. Unlike FRS 39, the accumulated fair value reserve related to these
investments will never be reclassified to the profit statement.
(b)
Trade and other receivables and cash and cash equivalents that were classified as loans and
receivables under FRS 39 are now classified at amortised cost.
(ii)
Impairment of financial assets
SFRS(I) 9 replaces the ‘incurred loss’ model in FRS 39 with an ECL model. The new impairment model
applies to financial assets measured at amortised cost, contract assets, but not to equity investments.
The Group applied the simplified approach and record lifetime expected losses on each of the classes
of financial assets under SFRS(I) 9. The amounts of the allowance were negligible.
41. NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED
A number of new standards and interpretations and amendments to standards are effective for annual periods
beginning after 1 October 2019 and earlier application is permitted; however, the Group has not early adopted the
new or amended standards and interpretations in preparing these financial statements.
The following new SFRS(I)s, interpretations and amendments to SFRS(I)s are effective for annual periods beginning
after 1 October 2019:
Applicable to 2020 financial statements
•
•
•
•
•
•
SFRS(I) 16 Leases
SFRS(I) INT 23 Uncertainty over Income Tax Treatments
Long-term Interests in Associates and Joint Ventures (Amendments to SFRS(I) 1-28)
Prepayment Features with Negative Compensation (Amendments to SFRS(I) 9)
Previously Held Interest in a Joint Operation (Amendments to SFRS(I) 3 and 11)
Income Tax Consequences of Payments on Financial Instruments Classified as Equity (Amendments to
SFRS(I) 1-12)
Borrowing Costs Eligible for Capitalisation (Amendments to SFRS(I) 1-23)
Plan Amendment, Curtailment or Settlement (Amendments to SFRS(I) 1-19)
•
•
Applicable to 2022 financial statements
•
SFRS(I) 17 Insurance Contracts
Mandatory effective data deferred
•
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to
SFRS(I) 10 and SFRS(I) 1-28).
19_0111_FPL_FR2019_FS_v18.indd 348
11/12/19 5:43 PM
Notes to the
Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2019
Annual Report 2019 349
41. NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED (CONT’D)
The Group has assessed the estimated impact that initial application of SFRS(I) 16 will have on the financial
statements. The Group’s assessment of SFRS(I) 16, which is expected to have a more significant impact on the
Group, is as described below.
(a)
SFRS(I) 16
SFRS(I) 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a
right-of-use (ROU) asset representing its right to use the underlying asset and a lease liability representing
its obligation to make lease payments. There are recognition exemptions for short-term leases and leases of
low-value items. Lessor accounting remains similar to the current standard – i.e. lessors continue to classify
leases as finance or operating leases. SFRS(I) 16 replaces existing lease accounting guidance, including
SFRS(I) 1-17 Leases, SFRS(I) INT 4 Determining whether an Arrangement contains a Lease, SFRS(I) INT 1-15
Operating Leases – Incentives and SFRS(I) INT 1-27 Evaluating the Substance of Transactions Involving the
Legal Form of a Lease. The standard is effective for annual periods beginning on or after 1 January 2019,
with early adoption permitted.
The Group plans to apply SFRS(I) 16 on 1 October 2019, using the modified retrospective approach.
Therefore, the cumulative effect of adopting SFRS(I) 16 will be recognised as an adjustment to the opening
balance of retained earnings at 1 October 2019, with no restatement of comparative information. The Group
plans to apply the practical expedient to grandfather the definition of a lease on transition. This means that
it will apply SFRS(I) 16 to all lease contracts entered into before 1 October 2019 and identified as leases in
accordance with SFRS(I) 1-17 and SFRS(I) INT 4.
(i)
Group as lessee
The Group expects to measure lease liabilities by applying a single discount rate to the portfolio of
leases. Furthermore, the Group will measure its ROU assets on a lease-by-lease basis at the amount
of the lease liability or as if SFRS(I) 16 had always been applied. For lease contracts that contain
option to renew, the Group is expected to use hindsight in determining the lease term.
The Group expects its existing operating lease arrangements to be recognised as ROU assets with
corresponding lease liabilities under the principles of SFRS(I) 16. Such operating lease commitments
amount to approximately $1,328,780,000 as at 30 September 2019 on an undiscounted basis. Under
the new standard, remaining lease payments of the operating leases will be recognised at their
present value discounted using an appropriate discount rate. In addition, the nature of expenses
related to those leases will now change as SFRS(I) 16 replaces the straight-line expenses with
depreciation charge of the ROU assets and interest expenses on the lease liabilities.
The Group is currently finalising the transition adjustments.
(ii)
Group as lessor
SFRS(I) 16 substantially carries forward the current existing lessor accounting requirements.
Accordingly, the Group continues to classify its leases as operating leases or finance leases, and to
account for these two types of leases using the existing operating lease and finance lease accounting
models respectively.
No significant impact is expected for leases in which the Group is a lessor.
19_0111_FPL_FR2019_FS_v18.indd 349
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350 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES
Singapore
Alexandra Point
A 24-storey office building at 438 Alexandra Road.
Freehold, lettable area – 18,550 sqm
51 Cuppage Road
A 10-storey commercial building at 51 Cuppage Road.
Leasehold (lease expires year 2095), lettable area – 25,339 sqm
Central Plaza
The Centrepoint
A 20-storey office building at 298 Tiong Bahru Road.
Leasehold (lease expires 2091), lettable area – 16,034 sqm
A 7-storey shopping-cum-residential complex with 2 basement floors at The
Centrepoint, 176 Orchard Road.
Freehold and leasehold (lease expires year 2078), lettable area – 32,899 sqm
Tiong Bahru Plaza
A 7-storey suburban retail mall at 302 Tiong Bahru Road.
Leasehold (lease expires 2090), lettable area – 19,947 sqm
Century Square
Hougang Mall
White Sands
Tampines 1
Robertson Walk & Fraser
Place Robertson Walk
Valley Point
A 7-storey suburban retail mall at 2 Tampines Central 5.
Leasehold (lease expires 2091), lettable area – 19,621 sqm
A 6-storey suburban retail mall at 90 Hougang Avenue 10.
Leasehold (lease expires 2092), lettable area – 15,455 sqm
A 6-storey suburban retail mall at 1 Pasir Ris Central Street 3.
Leasehold (lease expires 2092), lettable area – 13,965 sqm
A 5-storey suburban retail mall at 10 Tampines Central 1.
Leasehold (lease expires 2089), lettable area – 24,912 sqm
A 10-storey commercial-cum-serviced apartment complex with a 2-storey
basement carpark, a 2-storey retail podium and 164 serviced apartment units
at Robertson Walk Shopping Centre and Fraser Place Robertson Walk, 11
Unity Street.
Leasehold (lease expires year 2840)
Lettable area :
Retail – Robertson Walk
Serviced Apartments – Fraser Place Robertson Walk
8,881 sqm
17,694 sqm
26,575 sqm
A 20-storey commercial-cum-serviced apartment complex with a 5-storey
covered carpark, a 5-storey podium block and a 2-storey retail podium at
Valley Point Shopping Centre/Office Tower, 491/B River Valley Road.
Leasehold (lease expires year 2876)
Lettable area :
Retail – Valley Point Shopping Centre
Office – Valley Point Office Tower
4,025 sqm
17,024 sqm
21,049 sqm
Book Value
$’000
278,000
416,000
196,000
671,000
626,000
550,000
410,000
407,000
719,800
356,500
347,000
Northpoint City South Wing A 4-storey retail mall with a 2-storey basement carpark in a mixed commercial
and residential development integrated with bus interchange and community
club at 930 Yishun Avenue 2.
Leasehold (lease expires year 2114), lettable area – 26,961 sqm
1,050,000
19_0111_FPL_FR2019_FS_v18.indd 350
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Annual Report 2019 351
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
Singapore (cont’d)
Centrepoint Apartment
#04-56
An apartment unit at The Centrepoint, 176A Orchard Road.
Leasehold (lease expires year 2078), lettable area – 81 sqm
Centrepoint Apartment
#05-53
An apartment unit at The Centrepoint, 176A Orchard Road.
Leasehold (lease expires year 2078), lettable area – 104 sqm
Centrepoint Apartment
#05-59
An apartment unit at The Centrepoint, 176A Orchard Road.
Leasehold (lease expires year 2078), lettable area – 69 sqm
Centrepoint Apartment
#06-54
An apartment unit at The Centrepoint, 176A Orchard Road.
Leasehold (lease expires year 2078), lettable area – 104 sqm
Capri by Fraser,
Changi City
Capri by Fraser,
China Square
Malaysia
Setapak Central
Australia
Fraser Place Melbourne
313 units of hotel residences at Changi Business Park Central 1.
Leasehold (lease expires year 2069), lettable area – 10,583 sqm
304 units of hotel residences at 181 South Bridge Road.
Leasehold (lease expires year 2096), gross floor area – 16,000 sqm
A 3-storey retail mall in Setapak, Kuala Lumpur, Malaysia.
Leasehold (lease expires 2096), lettable area – 47,679 sqm
112 serviced apartment units in 2 blocks of high rise buildings at 19 Exploration
Lane, Melbourne, Victoria.
Freehold, lettable area – 3,516 sqm
Capri by Fraser, Brisbane
239 units of hotel residences at 80 Albert Street, Brisbane, Queensland.
Freehold, lettable area – 9,468 sqm
Frasers Property Australia
Group's Completed
Investment Properties
A car park comprising 267 public car parking spaces at Freshwater Place,
Public Car Park, Southbank, Victoria.
Freehold, lettable area – 11,822 sqm
A property comprising a warehouse and a single-storey office at 64 West Park
Drive, West Park, Derrimut, Victoria.
Freehold, lettable area – 20,337 sqm
A property comprising common facilities including a café, childcare centre,
car wash, gym, pool and common parking areas at Rhodes Corporate Park, 1E
Homebush Bay Drive, Rhodes, New South Wales.
Freehold, lettable area – 1,291 sqm
Book Value
$’000
2,150
2,690
1,870
2,700
209,000
290,500
104,937
28,852
80,971
18,149
21,080
12,983
A property comprising office accommodation at 1F Homebush Bay Drive,
Rhodes Corporate Park, Rhodes, New South Wales.
Freehold, lettable area – 17,600 sqm
114,011
An 8-storey office building at 20 Lee Street, Henry Deane Building, Railway
Square, Sydney, New South Wales.
Leasehold, lettable area – 9,112 sqm
97,724
19_0111_FPL_FR2019_FS_v18.indd 351
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352 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
Australia (cont’d)
Frasers Property Australia
Group's Completed
Investment Properties
(cont’d)
Book Value
$’000
A property comprising a warehouse and a 2-storey office component at 227
Walters Road, Arndell Park, New South Wales.
Freehold, lettable area – 17,733 sqm
29,317
A 8-storey building with a terrace area on level 7 at 26-30 Lee Street, Gateway
Building, Sydney, New South Wales.
Leasehold, lettable area – 12,602 sqm
159,150
A property comprising an industrial facility with full vehicular access and a
single-level office at 10 Reconciliation Rise, Dremulwuy, New South Wales.
Freehold, lettable area – 25,705 sqm
A 6-level office accommodation and a café at 1B Homebush Bay Drive, Rhodes
Corporate Park, Rhodes, New South Wales.
Freehold, lettable area – 12,785 sqm
46,209
73,525
A commercial office building with a 5-level office accommodation at 1D
Homebush Bay Drive, Rhodes Corporate Park, Rhodes, New South Wales.
Freehold, lettable area – 17,084 sqm
134,952
A property comprising a 3-level office and warehouse at 2 Wonderland Drive,
Eastern Creek, New South Wales.
Freehold, lettable area – 29,047 sqm
A property comprising 2 warehouses at 57 Efficient Drive, Truganinga,
Victoria.
Freehold, lettable area – 22,840 sqm
A property comprising of a warehouse at 18 Muir Street, Chullora, New South
Wales.
Freehold, lettable area – 91,690 sqm
A shopping centre located in Coorparoo, Queensland.
Lettable area – 6,775 sqm
43,743
21,406
50,630
44,022
Europe
Fraser Suites Kensington,
London
70 residential apartments at Fraser Suites Kensington, 75 Stanhope Gardens
London SW7 5RN, United Kingdom.
Freehold, lettable area – 6,842 sqm
188,522
Capri by Fraser, Barcelona
97 serviced apartments at Sancho de Avila, 32-34 Barcelona, Spain.
Freehold, lettable area – 3,626 sqm
Capri by Fraser, Frankfurt
153 serviced apartments at 42 Europa-allee, 60327, Frankfurt am Maine,
Germany.
Freehold, lettable area – 5,688 sqm
Capri by Fraser, Berlin
143 serviced apartments at Scharrenstraße 22, 10178 Berlin, Germany.
Freehold, lettable area – 4,103 sqm
31,984
57,180
52,955
19_0111_FPL_FR2019_FS_v18.indd 352
11/12/19 5:43 PM
Annual Report 2019 353
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
Europe (cont’d)
Flat 3 at Queens Gate
Gardens
An apartment unit at 39A Queens Gate Gardens, London SW7 5RR, the United
Kingdom.
Freehold, lettable area – 74 sqm
Fraser Suites Hamburg
154 serviced apartment units at Rodingsmarkt 2, Hamburg, Germany.
Freehold, lettable area – 5,273 sqm
Winnersh Triangle
Chineham Park
Watchmoor Park
Hillington Park
A mixed-use park comprising office and industrial accomodation located in
Berkshire, the United Kingdom.
Freehold, lettable area – 135,561 sqm
A mixed-use park comprising office and industrial accomodation located in
Basingstoke, the United Kingdom.
Freehold, lettable area – 75,348 sqm
An office park comprising office accommodation located in Camberley, the
United Kingdom.
Freehold, lettable area – 23,374 sqm
A mixed-use park comprising office and industrial accomodation located in
Glasgow, Scotland.
Freehold, lettable area – 206,992 sqm
Maxis Business Park
An office park comprising two 5-storey buildings located in Bracknell, the
United Kingdom.
Freehold, lettable area – 18,403 sqm
Book Value
$’000
1,919
106,062
590,619
285,510
73,515
227,806
114,048
Farnborough Business Park A mixed-use park located at Farnborough, Thames Valley, west of London, the
301,296
United Kingdom.
Freehold, lettable area – 51,164 sqm
Frasers Property Europe
Group's Completed
Investment Properties
A business park at Mülheim-Mellinghofer Strasse 55 (Technopark), Mülheim
an der Ruhr, Germany.
Freehold, lettable area – 122,591 sqm
107,821
Solar panels at Gottmadingen-Industriepark 309, Gottmadingen, Germany.
966
A cross-dock facility located in Bad Rappenau-Buchäckerring 18, Germany.
Freehold, lettable area – 51,863 sqm
A cross-dock facility located in Mainz-Genfer Allee 6, Germany.
Freehold, lettable area – 53,492 sqm
A cross-dock facility located in Ketzin an der Havel, Berlin, Germany.
Freehold, lettable area – 57,250 sqm
A cross-dock facility located in Hamburg, Billbrookdeich 167-171, Germany.
Leasehold, lettable area – 43,387 sqm
A logistics facility located at Werner von Siemens-strasse 44, Saarland,
Germany.
Freehold, lettable area – 9,298 sqm
58,085
80,565
60,650
87,354
13,277
19_0111_FPL_FR2019_FS_v18.indd 353
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354 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
Europe (cont’d)
Frasers Property Europe
Group’s Completed
Investment Properties
(cont’d)
A logistics facility located at Thomas-Dachser-Strasse 3, Saarland, Germany.
Freehold, lettable area – 21,765 sqm
A logistics facility located at Werner von Siemens-strass, Saarland, Germany.
Freehold, lettable area – 6,413 sqm
A logistics facility located at Kirchheim-Oskar-von-Miller-Strasse 2, Germany.
Freehold, lettable area – 30,165 sqm
A logistics facility located at Remscheid-Leverkuser strasse 65, Germany.
Freehold, lettable area – 29,418 sqm
A logistics facility located at Dreieich-An der Trift 75, Germany.
Freehold, lettable area – 19,937 sqm
A logistics facility located at Vienna-Schemmerlstrasse 72, Austria.
Freehold, lettable area – 44,147 sqm
A logistics facility located at Magstadt-Hutwiesenstrasse 13, Germany.
Freehold, lettable area – 21,498 sqm
A warehouse facility located at Hanau-Moselstrasse 70, Germany.
Freehold, lettable area – 4,996 sqm
A logistics facility located at Duisburg-Rheindeichstraße 155, Germany.
Freehold, lettable area – 46,580 sqm
A logistics facility located in Graz, Styriastrasse 15, Austria.
Freehold, lettable area – 29,356 sqm
A cargo logistics facility located in Vienna, at Vienna Airport, Cargo Nord,
Objekt 3, Austria.
Leasehold, lettable area – 10,419 sqm
A cargo logistics facility located in Vienna, at Vienna Airport, Cargo Nord,
Objekt 10-12, Austria.
Leasehold, lettable area – 9,307 sqm
A logistics facility located in Bielefeld, at Fuggerstrasse 13, Germany.
Freehold, lettable area – 22,690 sqm
A logistics facility located in Bielefeld, at Fuggerstrasse 15, Germany.
Freehold, lettable area – 31,087 sqm
A logistics facility located in Bielefeld, at Fuggerstrasse 17, Germany.
Freehold, lettable area – 22,336 sqm
A logistics facility located in Breda, on the border of the Netherlands and
Belgium, at Hazeldonk 6308, the Netherlands.
Freehold, lettable area – 8,303 sqm
A logistics facility located in Breda, on the border of the Netherlands and
Belgium, at Hazeldonk 6801, the Netherlands .
Freehold, lettable area – 4,225 sqm
Book Value
$’000
27,307
7,393
52,805
18,255
27,157
37,718
13,578
5,130
82,223
35,755
27,760
27,760
42,892
30,626
36,812
8,600
3,923
19_0111_FPL_FR2019_FS_v18.indd 354
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Annual Report 2019 355
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
Thailand
Amata Nakorn Industrial
Estate
17 industrial factories and vacant plot of land located in the Amata Nakorn
Industrial Estate on Sukhumvit Road (Highway No. 3) within Phan Thong Sub-
District, Phan Thong District, Chon Buri Province.
Freehold, lettable area
Land
Land
62,750 sqm
19,450 sqm
4,800 sqm
87,000 sqm
Book Value
$’000
87,308
Laemchabang Industrial
Estate
30 industrial factories located in the Laemchabang Industrial Estate on
Sukhumvit Road (Highway No. 3) within Thung Sukhla Sub-District, Si Racha
District, Chon Buri Province.
Leasehold (Expires year 2025, 2027 and 2029), lettable area – 77,005 sqm
Hi-Tech Industrial Estate
6 industrial factories and vacant plots of industrial land, located in the Hi-Tech
Industrial Estate on Asia Road (Highway No. 32) within Ban Len and Ban Pho
Sub-Districts, Bang Pa-in District, Phra Nakhon Si Ayutthaya Province.
Freehold, lettable area
Land
18,825 sqm
11,700 sqm
30,525 sqm
Amata City Industrial Estate 13 industrial factories and vacant plots of industrial land, located in the Amata
City Industrial Estate on Chachoengsao-Sattahip Road (Highway No. 331)
within Map Yang Phon Sub-District, Pluak Daeng District, Rayong Province.
29,625 sqm
Freehold, lettable area
16,950 sqm
Land
46,575 sqm
Rojana Industrial Estate
(Rayong – Ban Khai)
Vacant land located in the Rojana Industrial Estate Rayong on Ban Khai-Ban
Bueng Road (Highway No. 3138) within Nong Bua Sub-District, Ban Khai
District, Rayong Province.
Freehold, total area – 14,736 sqm
Rojana – Ayudhya Industrial
Park Zone 1-3
21 industrial factories and vacant plots of industrial land located in the Rojana
Industrial Estate on Rojana-Uthai Road (Highway No. 3056) within Ban Chang
and Uthai Sub-Districts, Uthai District, Phra Nakhon Si Ayutthaya Province.
72,100 sqm
Freehold, lettable area
10,900 sqm
Land
83,000 sqm
41,265
20,994
35,325
661
68,850
19_0111_FPL_FR2019_FS_v18.indd 355
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356 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
Thailand (cont’d)
Pinthong Industrial Estate
Vacant land, located in the Pinthong Industrial Estate 5 on Sattahip-
Chachoengsao Road (Highway No. 331) within Khao Khansong, Nong Kham
and Bowin Sub-Districts, Si Racha District, Chon Buri Province.
Freehold, lettable area
Estate 5
Estate 2
Estate 3
464,804 sqm
8,725 sqm
4,875 sqm
478,404 sqm
Ladkrabang Industrial Estate 1 industrial factory, located in the Latkrabang Industrial Estate on Chalong
Krung Road within Lam Pla Thio Sub-District, Lat Krabang District, Bangkok
Metropolis.
Freehold, lettable area – 1,300 sqm
Navanakorn Industrial
Promotion Zone
3 industrial factories located in the Nava Nakorn Industrial Estate on Phahon
Yothin Road (Highway No. 1) within Khlong Nueng Sub-District, Khlong Luang
District, Pathum Thani Province.
Freehold, lettable area
Land
7,400 sqm
5,000 sqm
12,400 sqm
Hemaraj Chonburi Industrial
Estate 1
3 industrial factories, located in the Hemaraj Chonburi Industrial Estate on
Sattahip-Chachoengsao Road (Highway No. 331) within Bo Win Sub-District,
Si Racha District, Chon Buri Province.
Freehold, lettable area – 11,100 sqm
Kabinburi Industrial Zone
Asia Industrial Estate
Suvarnabhumi
Rojana Industrial Park
(Prachinburi)
Tpark Bangna
7 industrial factories and vacant plots of industrial land located in the
Kabinburi Industrial Estate on Kabin Buri-Nakhon Ratchasima Road (Highway
No. 304) within Nong Ki Sub-District, Kabin Buri District, Prachin Buri Province.
Freehold, lettable area – 15,675 sqm
28 industrial factories and vacant plots of industrial land located in the Asia
Industrial Estate Suvarnaphumi on Luang Phaeng Road within Khlong Suan
Sub-District, Bang Bo District, Samut Prakan Province.
Freehold, lettable area – 38,350 sqm
8 industrial factories and vacant plots of industrial land located in the Rojana
Prachin Buri Industrial Park on Chachoengsao-Si Maha Phot Road (Highway
No. 304) within Hua Wa Sub-District, Si Maha Phot District, Prachin Buri
Province.
Freehold, lettable area – 22,350 sqm
26 warehouses and vacant plots of industrial land located in the TPark Bang
Na Km. 39 Project on Bang Na – Bang Pakong Road (Highway No. 34) within
Bang Samak Sub-District, Bang Pakong District, Cha Choeng Sao Province.
Freehold, lettable area
55,713 sqm
164,445 sqm
Land
9,100 sqm
Land
5,540 sqm
Land
234,798 sqm
Book Value
$’000
44,104
1,629
7,065
10,764
22,351
51,058
48,518
146,110
19_0111_FPL_FR2019_FS_v18.indd 356
11/12/19 5:43 PM
Annual Report 2019 357
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
Thailand (cont’d)
Tpark Laemchabang
Tpark Wangnoi 1
Tpark Lat Krabang
Tpark Sriracha
Land located in the TPark Laemchabang 1 Project on Bypass-Laem Chabang
Road (Motorway No. 7) within Nong Kham Sub-District, Si Racha District,
Chon Buri Province.
Freehold, total area – 36,102 sqm
7 warehouses located in the TPark Wang Noi 1 Project on Phahon Yothin Road
(Highway No. 1) around km. station 55+900 within Phayom Sub-District,
Wang Noi District, Phra Nakhon Si Ayutthaya Province.
Freehold, lettable area – 47,685 sqm
Vacant land located in the TPark Lat Krabang Project on Chalongkrung Road
within Lam Pla Thio Sub-District, Lat Krabang District, Bangkok Metropolis.
Freehold, total area – 388,374 sqm
14 warehouses and vacant plots of industrial land, located in the TPark
Sriracha (Bangphra) Project on Chon Buri-Pattaya Road (Highway No. 7) within
Bang Phra Sub-District, Si Racha District, Chon Buri Province.
Freehold, lettable area – 48,000 sqm
Tpark Eastern Seaboard 2A 9 warehouses and vacant plots of industrial land located in the TPark Eastern
Seaboard 2A Project on Chachoengsao-Sattahip Road (Highway No. 331)
within Bo Win Sub-District, Si Racha District, Chon Buri Province.
Freehold, lettable area – 24,363 sqm
Tpark Eastern Seaboard 2B Vacant land located in the TPark Eastern Seaboard 2B Project on
Chachoengsao-Sattahip Road (Highway No. 331) within Bo Win Sub-District,
Si Racha District, Chon Buri Province.
Freehold, total area – 107,504 sqm
Tpark Eastern Seaboard 1B
Tpark Wangnoi 2
Tpark Laemchabang 2
4 warehouses located in the TPark Eastern Seaboard 1B Project on
Chachoengsao-Sattahip Road (Highway No. 331) within Pluak Daeng Sub-
District, Pluak Daeng District, Rayong Province.
Freehold, total area – 11,400 sqm
16 warehouses and vacant plots of industrial land located in the TPark Wang
Noi 2 Project on Phahon Yothin Road (Highway No. 1) around km. station 57
within Phayom Sub-District, Wang Noi District, Phra Nakhon Si Ayutthaya
Province.
Freehold, lettable area – 103,337 sqm
26 warehouses and vacant plots of industrial land located in the TPark
Laemchabang 2 Project on Bypass-Laem Chabang Road (Motorway No. 7)
within Nong Kham Sub-District, Si Racha District, Chon Buri Province.
Freehold, lettable area – 53,690 sqm
Tpark Eastern Seaboard 1C Vacant located in the TPark Eastern Seaboard 1C Project on Chachoengsao-
Sattahip Road (Highway No. 331) within Bo Win Sub-District, Si Racha District,
Chon Buri Province.
Freehold, total area – 144,856 sqm
Book Value
$’000
2,295
51,008
27,265
50,900
18,936
13,608
7,497
129,474
83,534
8,964
19_0111_FPL_FR2019_FS_v18.indd 357
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358 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
Thailand (cont’d)
Tpark Phan Thong 1
Tpark Eastern Seaboard 3
Tpark Bangpakong
Tpark Khonkaen
Tpark Phan Thong 2
Tpark Phan Thong 3
10 warehouses located in the TPark Phan Thong 1 Project on Thang Rot Fai
Chachoengsao-Sattahip Road within Phan Thong Sub-District, Phan Thong
District, Chon Buri Province.
Freehold, lettable area – 38,391 sqm
8 warehouses and vacant plots of industrial land located in the TPark Eastern
Seaboard 3 Project on Chachoengsao-Sattahip Road (Highway No. 331) within
Khao Khansong Sub-District, Si Racha District, Chon Buri Province.
Freehold, lettable area – 15,350 sqm
Vacant land located in the TPark Bang Pakong Km. 46 Project on Bang Na –
Bang Pakong Road (Highway No. 34) within Bang Samak Sub-District, Bang
Pakong District, Cha Choeng Sao Province.
Freehold, total area – 328,716 sqm
12 warehouses and vacant plots of industrial land located in the TPark Khon
Kaen Project on Mittaphap Road (Highway No. 2) within Tha Phra Sub-District,
Mueang District, Khon Kaen Province.
Freehold, lettable area – 9,660 sqm
Vacant land located in the TPark Phan Thong 2 Project on Ban Kao – Phan
Thong Road (Highway No. 3127) within Phan Thong Sub-District, Phan Thong
District, Chon Buri Province.
Freehold, total area – 74,164 sqm
Vacant land located in the TPark Phan Thong 3 Project on Ban Kao – Phan
Thong Road (Highway No. 3127) within Phan Thong Sub-District, Phan Thong
District, Chon Buri Province.
Freehold, total area – 91,632 sqm
Amata City (A488) Industrial
Estate
11 warehouses located in the TPark Amata City Project on Sattahip –
Chachoengsao Road (Highway No. 331) within Map Yang Phon Sub-District,
Pluak Daeng District, Rayong Province.
Freehold, lettable area – 33,832 sqm
Tpark Surat Thani
Tpark Bangplee 1
Vacant land located in the TPark Surat Thani Project on Chaiya – Phunphin
Road (Highway No. 41) within Nong Sai Sub-District, Phunphin District, Surat
Thani Province.
Freehold, total area – 110,646 sqm
Vacant land located in the TPark Bang Phli 1 Project on Bang Na – Bang
Pakong Road (Highway No. 34) at around km. station 22, within Sisa Chorakhe
Yai Sub-District, Bang Sao Thong District, Samut Prakan Province.
Freehold, total area
Land
9,648 sqm
53,915 sqm
63,563 sqm
Book Value
$’000
33,300
38,736
35,130
23,373
8,762
10,310
30,065
7,781
57,996
19_0111_FPL_FR2019_FS_v18.indd 358
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Annual Report 2019 359
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
Thailand (cont’d)
Tpark Bangplee 3
Tpark Bangplee 4
Tpark Bangplee 5
Tpark Samut Sakhon
Tpark Lamphun
Tpark Rojang Prachinburi
Tpark Bangplee 2
Tpark Phanat Nikhom
Tpark Bangplee 6
15 warehouses and vacant plots of industrial land located in the TPark Bang
Phli 3 Project on Liap Khlong Chonlahan Pichit Road within Bang Pla Sub-
District, Bang Phli District, Samut Prakan Province.
Freehold, lettable area
Land
49,992 sqm
56,700 sqm
106,692 sqm
5 warehouses and vacant plots of industrial land located in the TPark Bang
Phli 4 Project on Liap Khlong Chonlahan Pichit Road around km. station 3+600,
within Bang Pla Sub-District, Bang Phli District, Samut Prakan Province.
Freehold, lettable area – 52,680 sqm
3 warehouses and vacant plots of industrial land located in the TPark Bang
Phli 5 Project on Liap Khlong Chonlahan Pichit Road at around km. station 19,
within Bang Pla Sub-District, Bang Phli District, Samut Prakan Province.
Freehold, lettable area – 15,048 sqm
2 warehouses and vacant plots of industrial land located in the TPark Samut
Sakhon Project on Rama 2 Road or Thon Buri-Pak Tho Road (Highway No. 35)
within Bang Krachao Sub-District, Mueang District, Samut Sakhon Province.
Freehold, lettable area – 34,421 sqm
9 warehouses and vacant plots of industrial land located in the TPark Lamphun
Project on Chiang Mai-Lamphun Road (Highway No. 11) within Umong Sub-
District, Mueang District, Lamphun Province.
Freehold, lettable area – 9,011 sqm
Vacant land located in the TPark Rojana Prachin Buri Project on Chachoengsao-
Kabin Buri Road (Highway No. 304) within Hua Wa Sub-District, Si Maha Phot
District, Prachin Buri Province.
Freehold, lettable area – 90,480 sqm
9 warehouses and vacant plots of industrial land located in the TPark Bang
Phli 2 Project on Mueang Mai-Bang Phli Road (Highway No. 1006) within Bang
Sao Thong Sub-District, Bang Sao Thong District, Samut Prakan Province.
Leasehold (lease expires year 2039), lettable area – 123,924 sqm
Vacant land located in the TPark Phanat Nikhom Project on Chachoengsao-
Sattahip Road (Highway No. 331) within Nong Prue Sub-District, Phanat
Nikhom District, Chon Buri Province.
Freehold, total area – 261,836 sqm
Vacant land located in the ‘TPark Bang Phli 6 Project’ on Liap Khlong Chonlahan
Pichit Road around km. station 4+700, within Bang Pla Sub-District, Bang Phli
District, Samut Prakan Province.
Freehold land, total area – 34,300 sqm
Book Value
$’000
26,906
66,879
19,517
93,285
18,486
5,459
82,962
8,100
36,297
19_0111_FPL_FR2019_FS_v18.indd 359
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360 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
Thailand (cont’d)
The River
FYI Centre
Vacant land located within Bang Hua Suea Sub-District, Phrapradaeng
District, Samut Prakan Province.
Freehold, total area – 21,498 sqm
Vacant land located at the corner of Ramkhamhaeng Road, Soi Ramkhamhaeng
28, Hua Mak Sub-Distrinct, Bang Kapi District, Bangkok Province.
Freehold, total area – 24,209 sqm
A 12-storey office building and three underground floors situated at Rama IV
Road and Ratchadaphisek Road (Khlong Toei intersection), within Khlong Toei
Sub-District, Khlong Toei District, Bangkok Metropolis.
Leasehold (lease expires year 2046), lettable area – 50,272 sqm
Panorama Resort and Golf
Club
Vacant land located at Ban Sup Chumphon – Ban Nong Han Road within Lat
Bua Khao and Nong Ya Khao Sub-Districts, Sikhio District, Nakhon Ratchasima
Province.
Freehold, total area – 332,944 sqm
Book Value
$’000
6,106
43,560
221,040
11,813
Sathorn Square
Goldenland Building
A 40-storey commercial office building with 5 underground floors located at
Khwaeng Silom, Khet Bang Rak, Krung Thep Maha Nakhon 10500.
Leasehold (lease expires year 2040), lettable area – 73,000 sqm
310,453
A 8-storey office building with one underground floor located at Soi
Mahadlekluang 1, Rajdamri Road, Pathumwan, Bangkok.
Leasehold (lease expires year 2022), lettable area – 11,000sqm
3 vacant plots of land located at Ao Thalen Beach off Krabi – Khao Thong Road
(Highway No. 4034), within Nong Tale Sub-District Mueang District, Krabi
Province.
Freehold, total area – 190,080 sqm
4,860
8,460
Land located at Sathon Nuea Road within Si Lom Sub-district, Bang Rak
District Bangkok Metropolis.
Leasehold (lease expires year 2040), lettable area – 7,670 sqm
30,915
Vacant land located off Bang Bon 4 Road, within Nong Khaem Sub-District,
Nong Khaem District, Bangkok Metropolis.
Freehold, total area – 52,371 sqm
Vacant land located at Soi Khu Bon 27 and Soi Khu Bon 27 Yaek 15,17 and 19,
off Khu Bon Road within Tha Raeng Sub-District, Bang Khen District Bangkok
Metropolis.
Freehold, total area – 5,408 sqm
Vacant land located at Ratchaphruek Road, within Bang Ramat Sub-District
Taling Chan District, Bangkok Metropolis.
Freehold, total area – 6,900 sqm
Land located at Frontage Road to Kanchanaphisek Road (Highway No. 9)
around km. station 39+900 and Public Road within Bang Chan Sub-District,
Khlong Sam Wa District Bangkok Metropolis.
Freehold, total area – 1,629 sqm
963
1,607
1,166
824
19_0111_FPL_FR2019_FS_v18.indd 360
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Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
Annual Report 2019 361
Book Value
$’000
Vietnam
Me Linh Point
China
Fraser Suites Beijing
Fraser Suites Dalian
Indonesia
A 21-storey retail/office building with 2 basements at Me Linh Point Tower,
2 Ngo Duc Ke Street, District 1, Ho Chi Minh City.
Leasehold (lease expires year 2045), lettable area – 17,489 sqm
66,562
A 23-storey serviced apartment building with a 3-level basement at 12
Jin Tong Xi Road, Chaoyang District, Beijing.
Leasehold : Residential (lease expires year 2073)
Commercial (lease expires year 2043)
Lettable area – 40,201 sqm
259 serviced apartment units in the Kardan Europark which is a large-scale
comprehensive development comprising of residential units, offices, shopping
mall and serviced apartments. The property comprises of levels 5 to 25 of the
Europark Apartment section of the development.
Freehold, lettable area – 25,759 sqm
238,656
73,492
Fraser Residence Sudirman,
Jakarta
108 serviced apartment units in Fraser Tower of Fraser Residence Sudirman
Jakarta at Jalan Setiabudi Raya No. 9, Setiabudi District, Jakarta.
Freehold, lettable area – 11,324 sqm
44,653
Japan
Capri by Fraser, Ginza
Carpark land lot located at Shimbashi, Minato-ku, Tokyo, to be redeveloped
into a 14-storey apart-hotel with 199 apartment units.
Freehold, total area – 851 sqm
177,068
HELD THROUGH FRASERS CENTREPOINT TRUST
Singapore
Causeway Point
A 7-storey retail mall (including 1 basement level) and a 7-level carpark (B2,
B3 and 2nd-6th levels) at 1 Woodlands Square.
Leasehold (lease expires year 2094), lettable area – 39,026 sqm
1,298,000
Northpoint City North Wing A 6-storey retail mall (including 2 basement levels) and a 3-level carpark (B1-
771,500
B3) at 930 Yishun Avenue 2.
Leasehold (lease expires year 2089), lettable area – 20,380 sqm
Changi City Point
Bedok Point
A 3-storey retail mall (including 1 basement level) at 5 Changi Business Park
Central 1.
Leasehold (lease expires year 2069), lettable area – 19,048 sqm
342,000
A 5-storey retail mall (including 1 basement level) and 1 basement carpark at
799 New Upper Changi Road.
Leasehold (lease expires year 2077), lettable area – 7,684 sqm
94,000
19_0111_FPL_FR2019_FS_v18.indd 361
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362 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
HELD THROUGH FRASERS CENTREPOINT TRUST (CONT’D)
Singapore (cont’d)
YewTee Point
Anchorpoint
A 2-storey retail mall (including 1 basement level) and 1 basement carpark at
21 Choa Chu Kang North 6.
Leasehold (lease expires year 2105), lettable area – 6,844 sqm
A 2-storey retail mall (including 1 basement level) and adjacent 2-storey
restaurant building at 368 and 370 Alexandra Road.
Freehold, lettable area – 6,595 sqm
Yishun 10 Retail Podium
10 strata-titled retail units at 51 Yishun Central 1.
Leasehold (lease expires year 2089), lettable area – 961 sqm
HELD THROUGH FRASERS COMMERCIAL TRUST
Singapore
China Square Central
Alexandra Technopark(1)
Australia
Central Park
A 15-storey office and retail tower with basement carpark and heritage
shophouses at 18, 20 & 22 Cross Street, China Square Central.
Leasehold (lease expires year 2096), lettable area – 36,223 sqm
A high-specification business space development comprising 3 buildings of
8, 9 and 3-storeys with basement carpark at 438A, 438B and 438C Alexandra
Road.
Freehold, lettable area – 95,947 sqm
A 51-storey office tower at 152-158 St Georges Terrace, Perth, Western
Australia.
Freehold, lettable area – 33,098 sqm
Caroline Chisholm Centre
A 5-storey office complex at Block 4 Section 13, Tuggeranong, Canberra,
Australian Capital Territory.
Leasehold (lease expires year 2101), lettable area – 40,244 sqm
357 Collins Street
A 25-storey office and retail building at 357 Collins Street, Melbourne,
Victoria.
Freehold, lettable area – 31,981 sqm
HELD THROUGH FRASERS HOSPITALITY TRUST
Singapore
Book Value
$’000
189,000
113,500
38,000
648,000
676,000
288,982
228,022
305,270
Fraser Suites Singapore(1)
255 serviced apartment units at 491A River Valley Road.
Freehold, lettable area – 22,214 sqm
375,000
Australia
Fraser Suites Sydney(1)
201 serviced apartment units at 488 Kent Street, Sydney, New South Wales.
Freehold, lettable area – 10,007 sqm
137,916
19_0111_FPL_FR2019_FS_v18.indd 362
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Annual Report 2019 363
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
HELD THROUGH FRASERS HOSPITALITY TRUST (CONT’D)
United Kingdom
Fraser Place Canary Wharf,
London(1)
2 buildings of 108 residential apartments at 80 Boardwalk Place, London.
Freehold, lettable area – 4,460 sqm
Fraser Suites Glasgow(1)
A 4-storey building of 98 serviced apartments at 1-19 Albion Street, Glasgow,
Scotland.
Freehold, lettable area – 4,964 sqm
Fraser Suites Edinburgh(1)
A 8-storey building of 75 residential apartments at 12-26 St Giles Street,
Edinburgh, Scotland.
Freehold, lettable area – 2,333 sqm
Book Value
$’000
77,787
19,701
28,193
105 residential apartments at 39B Queens Gate Gardens, London.
Freehold, lettable area – 4,188 sqm
106,999
Fraser Suites Queens Gate,
London(1)
Germany
Maritim Dresden
328 hotel rooms at Ostra-Ufer 2, Dresden.
Freehold, lettable area – 25,916 sqm
HELD THROUGH FRASERS LOGISTICS & INDUSTRIAL TRUST
Australia
2 adjoining office and warehouse facilities, located at 18-34 Aylesbury Drive,
Altona, Victoria.
Freehold, lettable area – 21,493 sqm
A large industrial warehouse and an attached 2-level office building, located
at 49-75 Pacific Drive, Keysborough, Victoria.
Freehold, lettable area – 25,163 sqm
An industrial facility, a substantial 2-level office and a ground floor café,
located at 115-121 South Centre Road, Melbourne Airport, Victoria.
Leasehold (lease expires year 2047), lettable area – 3,085 sqm
A 3-level office attached by a 1st floor walkway to the warehouse, located at
96-106 Link Road, Melbourne Airport, Victoria.
Leasehold (lease expires year 2047), lettable area – 18,599 sqm
2 warehouse and distribution facilities with associated office accommodation,
located at 17-23 Jets Court, Melbourne Airport, Victoria.
Leasehold (lease expires year 2047), lettable area – 9,869 sqm
2 adjoining warehouse facilities, each with front office accommodation,
located at 25-29 Jets Court, Melbourne Airport, Victoria.
Leasehold (lease expires year 2047), lettable area – 15,544 sqm
A warehouse distribution facility and a 2-level office, located at 28-32 Sky
Road East, Melbourne Airport, Victoria.
Leasehold (lease expires year 2047), lettable area – 12,086 sqm
104,553
25,114
28,852
4,933
24,477
7,166
10,160
7,213
19_0111_FPL_FR2019_FS_v18.indd 363
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364 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
HELD THROUGH FRASERS LOGISTICS & INDUSTRIAL TRUST (CONT’D)
Australia (cont’d)
Book Value
$’000
A warehouse and distribution facility with a single-level office, located at 38-
52 Sky Road East, Melbourne Airport, Victoria.
Leasehold (lease expires year 2047), lettable area – 46,231 sqm
2 freestanding industrial facilities with a 2-level office attached to a
warehouse with car parking for approximately 311 vehicles, located at 2-46
Douglas Street, Port Melbourne, Victoria.
Leasehold (lease expires year 2053), lettable area – 21,803 sqm
A warehouse facility, 2-level office and showroom, located at 21-33 South
Park Drive, Dandenong South, Victoria.
Freehold, lettable area – 22,106 sqm
A single-level office and temperature-controlled warehouse, located at 22-
26 Bam Wine Court, Dandenong South, Victoria.
Freehold, lettable area – 17,606 sqm
A storage and distribution facility, with associated office area, canopy,
hardstand and 69 parking lots, located at 16-32 South Park Drive, Dandenong
South, Victoria.
Freehold, lettable area – 12,729 sqm
Industrial office and warehouse facility, located at 98-126 South Park Drive,
Dandenong South, Victoria.
Freehold, lettable area – 28,062 sqm
A warehouse and attached 2-storey office/display centre, located at 77
Atlantic Drive, Keysborough, Victoria.
Freehold, lettable area – 15,095 sqm
2 warehouse and office facilities under 1 roofline, located at 17 Pacific Drive
and 170-172 Atlantic Drive, Keysborough, Victoria.
Freehold, lettable area – 30,004 sqm
2 adjoining distribution facilities with associated mezzanine level office areas,
located at 78 & 88 Atlantic Drive, Keysborough, Victoria.
Freehold, lettable area – 13,495 sqm
2 adjoining distribution facilities with associated mezzanine level office areas,
located at 150-168 Atlantic Drive, Keysborough, Victoria.
Freehold, lettable area – 27,272 sqm
2 attached warehouses, each with internal office accommodation, located at
1-13 and 15-27 Sunline Drive, Truganina, Victoria.
Freehold, lettable area – 26,153 sqm
A distribution facility and incorporate a single-level office which is attached
to a large warehouse, located at 468 Boundary Road, Derrimut, Victoria.
Freehold, lettable area – 24,732 sqm
26,060
21,034
24,664
22,802
14,193
34,901
19,731
39,555
16,939
34,436
29,317
34,064
19_0111_FPL_FR2019_FS_v18.indd 364
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Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
Annual Report 2019 365
COMPLETED INVESTMENT PROPERTIES (CONT’D)
HELD THROUGH FRASERS LOGISTICS & INDUSTRIAL TRUST (CONT’D)
Australia (cont’d)
Book Value
$’000
1 office and warehouse, located at 42 Sunline Drive, Truganina, Victoria.
Freehold, lettable area – 14,636 sqm
3 office and warehouse accommodations, located at 2-22 Efficient Drive,
Truganina, Victoria.
Freehold, lettable area – 38,335 sqm
1 office/showroom development and 330 car parking bays, located at 211A
Wellington Road, Mulgrave, Victoria.
Freehold, lettable area – 7,175 sqm
Office warehouse, located at 1 Doriemus Drive, Truganina, Victoria.
Freehold, lettable area – 74,546 sqm
1 office/warehouse distribution centre, located at 21 Kangaroo Avenue,
Eastern Creek, New South Wales.
Freehold, lettable area – 41,401 sqm
2 adjoining office and warehouse, located at 17 Kangaroo Avenue, Eastern
Creek, New South Wales.
Freehold, lettable area – 23,112 sqm
Office/warehouse facility, located at 7 Eucalyptus Place, Eastern Creek, New
South Wales.
Freehold, lettable area – 16,074 sqm
A warehouse and office, located at 6 Reconciliation Rise, Pemulwuy, New
South Wales.
Freehold, lettable area – 19,218 sqm
Industrial distribution facility, located at 8-8A Reconciliation Rise, Pemulwuy,
New South Wales.
Freehold, lettable area – 22,511 sqm
A port related automotive vehicle storage and distribution facility, located at
Lot 104 & 105 Springhill Road, Port Kembla, New South Wales.
Leasehold (lease expires year 2049), lettable area – 90,661 sqm
2-storey office and warehouse facility, located at 8 Distribution Place, Seven
Hills, New South Wales.
Freehold, lettable area – 12,319 sqm
2-level office accommodation, undercover parking and a warehouse, located
at 10 Stanton Road, Seven Hills, New South Wales.
Freehold, lettable area – 7,065 sqm
Warehouse and associated offices, located at 99 Station Road, Seven Hills,
New South Wales.
Freehold, lettable area – 10,772 sqm
16,008
43,278
37,228
88,416
67,476
44,022
30,527
39,369
44,115
24,570
24,477
12,564
18,893
19_0111_FPL_FR2019_FS_v18.indd 365
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366 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
HELD THROUGH FRASERS LOGISTICS & INDUSTRIAL TRUST (CONT’D)
Australia (cont’d)
Book Value
$’000
2 adjoining office and warehouse units, located at 11 Gibbon Road, Winston
Hills, New South Wales.
Freehold, lettable area – 16,625 sqm
2 separate standalone distribution facilities, located at 4-8 Kangaroo Avenue,
Eastern Creek, New South Wales.
Freehold, lettable area – 40,543 sqm
Office/warehouse distribution centre, located at 10 Siltstone Place, Berrinba,
Queensland.
Leasehold (lease expires year 2115), lettable area – 9,797 sqm
Warehouse with ancillary office spaces, located at 55-59 Boundary Road,
Carole Park, Queensland.
Leasehold (lease expires year 2115), lettable area – 13,250 sqm
Warehouse and manufacturing facility, located at 57-71 Platinum Street,
Crestmead, Queensland.
Leasehold (lease expires year 2115), lettable area – 20,518 sqm
Warehouse and production facility with associated office accommodation,
located at 51 Stradbroke Street, Heathwood, Queensland.
Leasehold (lease expires year 2115), lettable area – 14,916 sqm
Warehouse and office facility, located at 30 Flint Street, Inala, Queensland.
Leasehold (lease expires year 2115), lettable area – 15,052 sqm
Warehouse and manufacturing facility, with a detached 2-level office building,
located at 286 Queensport Road, North Murarrie, Queensland.
Leasehold (lease expires year 2115), lettable area – 21,531 sqm
2-level office and warehouse, located at 350 Earnshaw Road, Northgate,
Queensland.
Leasehold (lease expires year 2115), lettable area – 30,779 sqm
44,674
79,234
14,891
18,428
41,137
25,501
24,664
37,228
54,725
Warehouse and distribution centre, together with a 2-storey office, located at
99 Sandstone Place, Parkinson, Queensland.
Leasehold (lease expires year 2115), lettable area – 54,245 sqm
125,645
Warehouse and distribution facility with a single-level office, located at 99
Shettleston Street, Rocklea, Queensland.
Leasehold (lease expires year 2115), lettable area – 15,186 sqm
21,499
4 various-sized industrial units with associated offices, located at 5 Butler
Boulevard, Adelaide Airport, South Australia.
Leasehold (lease expires year 2097), lettable area – 8,224 sqm
Office and warehouse facility, located at 20-22 Butler Boulevard, Adelaide
Airport, South Australia.
Leasehold (lease expires year 2097), lettable area – 11,197 sqm
7,818
9,772
19_0111_FPL_FR2019_FS_v18.indd 366
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Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
Annual Report 2019 367
COMPLETED INVESTMENT PROPERTIES (CONT’D)
HELD THROUGH FRASERS LOGISTICS & INDUSTRIAL TRUST (CONT’D)
Australia (cont’d)
Book Value
$’000
Office and warehouse facility, located at 18-20 Butler Boulevard, Adelaide
Airport, South Australia.
Leasehold (lease expires year 2097), lettable area – 6,991 sqm
A complex comprising an office warehouse building, located at 60 Paltridge
Road, Perth Airport, Western Australia.
Leasehold (lease expires year 2033), lettable area – 20,143 sqm
Office and warehouse facility, located at Lot 143 Pearson Rd, Yatala,
Queensland.
Leasehold (lease expires year 2115), lettable area – 30,618 sqm
Office/warehouse development, located at 111 Indian Drive, Truganina,
Victoria.
Freehold, lettable area – 21,660 sqm
Specialised temperature-controlled warehouse and a 2-level office, located
at 1 Burilda Close, Wetherill Park, New South Wales.
Leasehold (lease expires year 2106), lettable area – 18,848 sqm
A standalone high-clearance warehouse, sub-divided into 2 tenancy areas,
located at Lot 1, 2 Burilda Close, Wetherill Park, New South Wales.
Leasehold (lease expires year 2106), lettable area – 14,333 sqm
A 2-level office and high clearance warehouse facility, located at 8 Stanton
Road, Seven Hills, New South Wales.
Freehold, lettable area – 10,708 sqm
A single-level office and high-clearance warehouse facility, located at 43
Efficient Drive, Truganina, Victoria.
Freehold, lettable area – 23,088 sqm
A single-level office and high-clearance warehouse facility, located at Indian
Drive, Keysborough, Victoria.
Freehold, lettable area – 21,854 sqm
A single-level office and high-clearance warehouse facility, located at 89-103
South Park Drive, Dandenong South, Victoria.
Freehold, lettable area – 10,425 sqm
A single-level office and high-clearance warehouse facility, located at Pearson
Road, Yatala, Queensland.
Freehold, lettable area – 23,218 sqm
A two-level office and high clearance temperature controlled warehouse,
located at 17 Hudson Court, Keysborough, Victoria.
Freehold, lettable area – 21,271 sqm
A modern industrial office/warehouse building, located at 3 Burilda Close,
Wetherill Park, New South Wales.
Leasehold (lease expires year 2107), lettable area – 20,078 sqm
6,515
11,401
38,531
35,832
65,614
23,775
17,776
24,105
29,342
13,083
36,541
28,126
33,846
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368 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
HELD THROUGH FRASERS LOGISTICS & INDUSTRIAL TRUST (CONT’D)
Australia (cont’d)
Book Value
$’000
Europe
Office and warehouse facility, located at 103-131 Wayne Goss Drive, Berrinba,
Queensland.
Freehold, lettable area – 19,487 sqm
Office and warehouse facility, located at 8-28 Hudson Court, Keysborough,
Victoria.
Freehold, lettable area – 25,762 sqm
Office and warehouse facility, located at 2 Hanson Place, Eastern Creek, New
South Wales.
Freehold, lettable area – 32,839 sqm
Office and warehouse facility, located at 29-51 Wayne Goss Drive, Berrinba,
Queensland.
Freehold, lettable area – 15,456 sqm
A logistics facility at Marl-Elbestraße 1-3, Marl, Germany.
Freehold, lettable area – 16,831 sqm
A light industrial facility at Isenbüttel-Am Krainhop 10, Isenbüttel, Germany.
Freehold, lettable area – 20,679 sqm
A logistics facility at Vaihingen-Otto-Hahn-Straße 10, Vaihingen an der Enz,
Germany.
Freehold, lettable area – 43,756 sqm
A logistics facility at Ulm-Eiselauer Weg 2, Ulm, Germany.
Freehold, lettable area – 24,525 sqm
A light industrial facility at Gottmadingen-Industriepark 309, Gottmadingen,
Germany.
Freehold, lettable area – 35,307 sqm
A light industrial facility at Gottmadingen-Industriepark 309 (Halle 5-7),
Gottmadingen, Germany.
Freehold, lettable area – 19,700 sqm
A light industrial facility at Mamming-Industriepark 1, Mamming, Germany.
Freehold, lettable area – 14,193 sqm
A logistics facility at Leipzig-Am Exer 9, Leipzig, Germany.
Freehold, lettable area – 11,537 sqm
A logistics facility at Chemnitz-Johann-Esche-Straße 2, Chemnitz, Germany.
Freehold, lettable area – 18,053 sqm
A light industrial facility at Amberg-Jubatus-Allee 3, Amberg/Ebermannsdorf,
Germany.
Freehold, lettable area – 9,389 sqm
29,192
33,341
62,777
22,547
21,725
27,006
76,763
64,723
44,131
28,135
23,839
20,971
25,346
11,617
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Annual Report 2019 369
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
HELD THROUGH FRASERS LOGISTICS & INDUSTRIAL TRUST (CONT’D)
Europe (cont’d)
facility at s-Heerenberg-Brede Steeg 1, s-Heerenberg,
A
logistics
The Netherlands.
Freehold, lettable area – 84,806 sqm
A logistics facility at Nürnberg-KoperStraße 10, Nürnberg, Germany.
Freehold, lettable area – 44,221 sqm
A logistics facility at Achern-Ambros-Nehren-Straße 1, Achern, Germany.
Freehold, lettable area – 12,304 sqm
A logistics facility at Rheinberg-Saalhoffer Straße 211, Rheinberg, Germany.
Freehold, lettable area – 31,957 sqm
A light industrial facility at Münster-Gustav-Stresemann-Weg 1, Münster,
Germany.
Freehold, lettable area – 12,960 sqm
A light industrial facility at Brilon-Keffelker Straße 66, Brilon, Germany.
Freehold, lettable area – 13,352 sqm
A light industrial facility at Rastede-Am Autobahnkreuz 14, Rastede, Germany.
Freehold, lettable area – 11,491 sqm
A logistics facility at Tilburg-Belle van Zuylenstraat 5, Tilburg, The Netherlands.
Freehold, lettable area – 18,121 sqm
A logistics facility at Zeewolde-Handelsweg 26, Zeewolde, The Netherlands.
Freehold, lettable area – 51,703 sqm
A logistics facility at Venlo-Heierhoevenweg 17, Venlo, The Netherlands.
Freehold, lettable area – 32,642 sqm
A logistics facility at Moosthenning-Oberes Feld 2, Germany.
Freehold, lettable area – 51,418 sqm
A logistics facility at Moosthenning-Oberes Feld 2, Germany.
Freehold, lettable area – 21,140 sqm
A logistics facility at Freiberg am Neckar-Murrer Straße 1, Germany.
Freehold, lettable area – 21,071 sqm
A logistics warehouse located in Meppel, The Netherlands.
Freehold, lettable area – 31,013 sqm
A cross-dock facility located in Graben-Hermessrasse, Augsburg, Germany.
Freehold, lettable area – 11,534 sqm
facility
logistics
A
Baden-Württemberg, Germany.
Freehold, lettable area – 44,501 sqm
located at Buhlfeldstraße 2-8, Herbrechtingen,
Book Value
$’000
100,178
68,314
21,122
43,601
23,234
15,238
27,911
23,189
61,193
40,886
73,398
31,034
52,261
39,226
50,994
47,855
19_0111_FPL_FR2019_FS_v18.indd 369
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370 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED INVESTMENT PROPERTIES (CONT’D)
HELD THROUGH FRASERS LOGISTICS & INDUSTRIAL TRUST (CONT’D)
Europe (cont’d)
A logistics facility located at Ratingen-An den Dieken 92, Germany.
Freehold, lettable area – 43,095 sqm
A logistics facility located at Bergheim-Walter-Gropius-Straße 19, Germany.
Freehold, lettable area – 19,404 sqm
A logistics facility located at Obertshausen-Im Birkengrund 5-7, Germany.
Freehold, lettable area – 23,154 sqm
A logistics facility located at Tamm-Bietigheimer Straße 50-52, Germany.
Freehold, lettable area – 38,932 sqm
A logistics facility located at Garching Dieselstaße 30, Germany.
Freehold, lettable area – 13,014 sqm
TOTAL COMPLETED INVESTMENT PROPERTIES
INVESTMENT PROPERTIES UNDER CONSTRUCTION
Book Value
$’000
69,816
29,156
44,444
104,106
45,261
22,501,934
Book Value
$’000
Singapore
Rivière
Thailand
Amata Nakorn Industrial
Estate
Hi-Tech Industrial Estate
A commercial development at Jiak Kim Street, Singapore, comprising 1 block
of 4-storey serviced apartment (80 units) and 1,700 sqm of commercial space
within existing conservation warehouse buildings which are to be restored.
Leasehold (lease expires 2117), gross floor area – 4,861 sqm
78,860
1 industrial factory located in the Amata Nakorn Industrial Estate on
Sukhumvit Road (Highway No. 3) within Phan Thong Sub-District, Phan Thong
District, Chon Buri Province.
Freehold, lettable area – 2,550 sqm
5 industrial factories, located in the Hi-Tech Industrial Estate on Asia Road
(Highway No. 32) within Ban Len and Ban Pho Sub-Districts, Bang Pa-in
District, Phra Nakhon Si Ayutthaya Province.
Freehold, lettable area – 12,200 sqm
1,989
3,211
1,566
Amata City Industrial Estate 2 industrial factories, located in the Amata City Industrial Estate on
Chachoengsao-Sattahip Road (Highway No. 331) within Map Yang Phon
Sub-District, Pluak Daeng District, Rayong Province.
Freehold, lettable area – 5,600 sqm
19_0111_FPL_FR2019_FS_v18.indd 370
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Annual Report 2019 371
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
INVESTMENT PROPERTIES UNDER CONSTRUCTION (CONT’D)
Thailand (cont’d)
Rojana Industrial Estate
(Rayong – Ban Khai)
1 industrial factory, located in the Rojana Industrial Estate Rayong on Ban
Khai – Ban Bueng Road (Highway No. 3138) within Nong Bua Sub-District, Ban
Khai District, Rayong Province.
Freehold, lettable area – 3,000 sqm
Rojana – Ayudhya Industrial
Park Zone 1-3
16 industrial factories located in the Rojana Industrial Estate on Rojana –
Uthai Road (Highway No. 3056) within Ban Chang and Uthai Sub-Districts,
Uthai District, Phra Nakhon Si Ayutthaya Province.
Freehold, lettable area – 38,800 sqm
Kabinburi Industrial Zone
2 industrial factories, located in the Kabinburi Industrial Estate on Kabin Buri-
Nakhon Ratchasima Road (Highway No. 304) within Nong Ki Sub-District,
Kabin Buri District, Prachin Buri Province.
Freehold, lettable area – 4,800 sqm
Asia Industrial Estate
Suvarnabhumi
8 industrial factories, located in the Asia Industrial Estate Suvarnaphumi on
Luang Phaeng Road within Khlong Suan Sub-District, Bang Bo District, Samut
Prakan Province.
Freehold, lettable area – 17,100 sqm
Rojana Industrial Park
(Prachinburi)
1 industrial factory, located in the Rojana Prachin Buri Industrial Park on
Chachoengsao-Si Maha Phot Road (Highway No. 304) within Hua Wa Sub-
District, Si Maha Phot District, Prachin Buri Province.
Freehold, lettable area – 4,000 sqm
Tpark Bangplee 6
1 warehouse located in the TPark Bang Phli 6 Project on Liap Khlong Chonlahan
Pichit Road at around km. station 4+700, within Bang Pla Sub-District, Bang
Phli District, Samut Prakan Province.
Freehold, lettable area – 70,750 sqm
Book Value
$’000
455
10,400
631
12,221
559
27,470
TOTAL INVESTMENT PROPERTIES UNDER CONSTRUCTION
TOTAL PROPERTIES (CLASSIFIED AS INVESTMENT PROPERTIES)
137,362
22,639,296
1 Due to consolidation of the REITs, the carrying values of these properties have been adjusted to reflect FPL Group's freehold interest in the properties.
19_0111_FPL_FR2019_FS_v18.indd 371
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372 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
PROPERTY, PLANT AND EQUIPMENT
Australia
Fraser Suites Perth
United Kingdom
Malmaison Belfast
Malmaison Edinburgh
Malmaison Glasgow
Malmaison Leeds
Malmaison Liverpool
Malmaison Reading
Hotel du Vin Birmingham
Hotel du Vin Brighton
Hotel du Vin Bristol
Book Value
$'000
236 apartments and suites at 10 Adelaide Terrace, East Perth, Western
Australia.
Freehold, gross floor area – 27,447 sqm
95,227
A boutique hotel situated at 34-38 Victoria Street, Belfast, BT1 3GH, Northern
Ireland. The property provides a 64 bedroom boutique hotel, a 60 cover
restaurant, bar, gym and meeting rooms for a total capacity of 40.
Freehold, gross floor area – 3,600 sqm
A boutique hotel situated at 1 Tower Place, Edinburgh, EH6 7BZ, Scotland.
The property provides a 100 bedroom boutique hotel, a 53 cover restaurant,
bar, gym and meeting rooms for a total capacity of 70.
Freehold, gross floor area – 6,340 sqm
A boutique hotel situated at 278 West George Street, Glasgow, G2 4LL,
Scotland. The property provides a 72 bedroom boutique hotel, a 106 cover
restaurant, 2 bars, gym and meeting rooms for a total capacity of 45.
Freehold, gross floor area – 4,408 sqm
A boutique hotel situated at 1 Swinegate, Leeds, LS1 4AG, England. The
property provides a 100 bedroom boutique hotel, a 96 cover restaurant, bar,
gym and meeting rooms for a total capacity of 45.
Freehold, gross floor area – 7,920 sqm
A boutique hotel situated at 7 William Jessop Way, Liverpool, L3 1QZ,
England. Occupying floors ground to sixth, the boutique hotel provides 130
bedrooms, a 65 cover Brasserie restaurant, 2 private dining rooms (Kitchen &
Boudoir with 18 covers), a 70 seat Mal Bar, a small gym and 4 meeting rooms
with a maximum capacity of 100.
Leasehold (lease expires year 2146), gross floor area – 8,250 sqm
A boutique hotel situated at 18-20 Station Road, Reading, RG1 1JX, England.
The property provides a 75 bedroom boutique hotel, a 76 cover restaurant,
bar, gym and meeting rooms for a total capacity of 25.
Leasehold (lease expires year 2894), gross floor area – 1,804 sqm
A boutique hotel situated at Church Street, Birmingham, B3 2NR, England.
The property provides a 66 bedroom boutique hotel, a 85 cover restaurant,
bar, gym and meeting rooms for a total capacity of 90.
Leasehold (lease expires year 2150), gross floor area – 4,510 sqm
A boutique hotel situated at Ship Street, Brighton, BN1 1AD, England. The
property provides a 49 bedroom boutique hotel, a 80 cover restaurant, bar,
and meeting rooms for a total capacity of 110.
Freehold, gross floor area – 5,693 sqm
A boutique hotel situated at The Sugar House, Narrow Lewins Mead, Bristol,
BS1 2NU, England. The property provides a 40 bedroom boutique hotel, a 80
cover restaurant, bar and 3 meeting rooms for a maximum capacity of 72.
Freehold, gross floor area – 3,272 sqm
12,029
24,328
11,060
18,881
22,578
21,432
16,184
30,094
18,487
19_0111_FPL_FR2019_FS_v18.indd 372
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Annual Report 2019 373
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
PROPERTY, PLANT AND EQUIPMENT (CONT’D)
United Kingdom (cont’d)
Hotel du Vin Cambridge
Hotel du Vin Cheltenham
Hotel du Vin Edinburgh
Hotel du Vin Glasgow
Hotel du Vin Harrogate
Hotel du Vin Henley
Hotel du Vin Newcastle
Hotel du Vin Poole
Hotel du Vin St Andrews
A boutique hotel situated at 15-19 Trumpington Street, Cambridge, CB2 1QA,
England. The property provides a 41 bedroom boutique hotel, a 82 cover
restaurant, bar and 2 meeting rooms for a maximum capacity of 24.
Leasehold (lease expires year 2105), gross floor area – 4,320 sqm
A boutique hotel situated at Parabola Road, Cheltenham, Gloucestershire,
GL50 3AQ, England. The property provides a 49 bedroom boutique hotel, a
110 cover restaurant, bar and meeting rooms for a total capacity of 40.
Freehold, gross floor area – 3,625 sqm
A boutique hotel situated at 11 Bistro Place, Edinburgh, EH1 1EZ, Scotland.
The property provides a 47 bedroom boutique hotel, a 80 cover restaurant,
bar and meeting rooms with capacity of 36.
Freehold, gross floor area – 4,126 sqm
A boutique hotel situated at Devonshire Gardens, Glasgow, G12 0UX, Scotland.
The property provides a 49 bedroom boutique hotel, a 80 cover restaurant,
bar, gym and meeting rooms for a maximum capacity of 50.
Freehold, gross floor area – 5,280 sqm
A boutique hotel situated at Prospect Place, Harrogate, North Yorkshire, HG1
1LB, England. The property provides a 48 bedroom boutique hotel, a 90 cover
restaurant, bar and meeting rooms for a total capacity of 60.
Freehold, gross floor area – 7,552 sqm
A boutique hotel situated at New Street, Henley-on-Thames, Oxfordshire,
RG9 2BP, England. The property provides a 43 bedroom boutique hotel, a 80
cover restaurant, bar and meeting rooms for a total capacity of 56.
Freehold, gross floor area – 5,260 sqm
A boutique hotel situated at Allan House, City Road, Newcastle-upon-Tyne,
NE1 2BE, England. The property provides a 42 bedroom boutique hotel, a 84
cover restaurant, bar and meeting rooms for a maximum capacity of 36.
Freehold, gross floor area – 3,491 sqm
A boutique hotel situated at The Quay, Thames Street, Poole, BH15 1JN,
England. The property provides a 38 bedroom boutique hotel, a 85 cover
restaurant, bar and meeting rooms for a total capacity of 30.
Freehold and leasehold (lease expires year 2078), gross floor area – 2,610 sqm
A boutique hotel situated at 40 The Scores, St Andrews, KY16 9AS, Scotland.
The property provides a 40 bedroom boutique hotel, a 56 cover restaurant,
bar and meeting rooms for a total capacity of 120.
Freehold, gross floor area – 3,974 sqm
Hotel du Vin Tunbridge
Wells
A boutique hotel situated at Crescent Road, Tunbridge Wells, TN1 2LY,
England. The property provides a 34 bedroom boutique hotel, a 88 cover
restaurant, bar and meeting rooms with a maximum capacity of 80.
Freehold, gross floor area – 2,916 sqm
Book Value
$'000
18,198
14,730
20,024
18,701
11,994
14,691
4,570
6,523
10,568
14,810
19_0111_FPL_FR2019_FS_v18.indd 373
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374 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
PROPERTY, PLANT AND EQUIPMENT (CONT’D)
United Kingdom (cont’d)
Hotel du Vin Wimbledon
Hotel du Vin Winchester
Hotel du Vin York
A boutique hotel situated at Cannizaro House, West Side Common, London,
SW19 4 UE, England. The property provides a 48 bedroom boutique hotel, a
60 cover restaurant, bar and meeting rooms for a total capacity of 120.
Leasehold (lease expires year 2111), gross floor area – 4,531 sqm
A boutique hotel situated at 14 Southgate Street, Winchester, Hampshire,
SO23 9EF, England. The property provides a 24 bedroom boutique hotel, a 60
cover restaurant, bar and meeting rooms for a total capacity of 50.
Freehold, gross floor area – 2,225 sqm
A boutique hotel situated at 89 The Mount, York, YO24 1AX, England. The
property provides a 44 bedroom boutique hotel, a 70 cover restaurant, bar
and meeting rooms for a total capacity of 30.
Freehold, gross floor area – 4,210 sqm
Hotel du Vin Stratford upon
Avon
A boutique hotel situated on Rother Street, Stratford upon Avon, Staffordshire,
C37 6LU, England. The property provides a 46 bedroom boutique hotel, an 80
cover restaurant, bar and meeting rooms for a total capacity of 48.
Freehold, gross floor area – 3,218 sqm
Malmaison Cheltenham
Hotel du Vin Avon Gorge
Hotel du Vin Exeter
A boutique hotel situated on Bayshill Road, Cheltenham, Gloucestershire,
GL50 3AS, England. The property provides a 61 bedroom hotel, a 74 cover
restaurant, bar and meeting rooms for a total capacity of 38.
Freehold, gross floor area – 3,226 sqm
A boutique hotel situated on Sion Hill, Clifton, Bristol, BS8 4LD, England. The
property provides a 75 bedroom hotel, a 50 cover restaurant, bar and meeting
rooms for a total capacity of 80.
Freehold, gross floor area – 5,219 sqm
A boutique hotel situated on Magdalen Street, Exeter, Devon, EX2 4HY,
England. The property provides a 59 bedroom boutique hotel, a 80 cover
restaurant, bar and meeting rooms for a total capacity of 24.
Freehold, gross floor area – 2,293 sqm
Book Value
$'000
26,670
10,773
13,040
13,541
19,060
42,894
16,892
Hotel du Vin Aberdeen
An unoccupied building to be redeveloped at Clarke Building, Schoolhill,
Aberdeen, AB10 1JQ, Scotland.
6,700
Thailand
Tpark Bangna
Tpark Bangplee 1
Sale office and storage located in the TPark Bang Na km. 39 Project on Bang
Na – Bang Pakong Road (Highway No. 34) within Bang Samak Sub-District,
Bang Pakong District, Cha Choeng Sao Province, Thailand.
Sale office located in the TPark Bang Phli 1 Project on Bang Na – Bang Pakong
Road (Highway No. 34) at around km. station 22, within Sisa Chorakhe Yai
Sub-District, Bang Sao Thong District, Samut Prakan Province, Thailand.
1,327
453
19_0111_FPL_FR2019_FS_v18.indd 374
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Annual Report 2019 375
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
PROPERTY, PLANT AND EQUIPMENT (CONT’D)
Thailand (cont’d)
Tpark Eastern Seaboard 3
Sale office located in the TPark Eastern Seaboard 3 Project on Chachoengsao-
Sattahip Road (Highway No. 331) within Khao Khansong Sub-District, Si Racha
District, Chon Buri Province, Thailand.
Tpark Khonkaen
Sale office located in the TPark Khon Kaen Project on Mittaphap Road
(Highway No. 2) within Tha Phra Sub-District, Mueang District, Khon Kaen
Province, Thailand.
Tpark Laemchabang 2
Sale office located in the TPark Laemchabang 2 Project on Bypass-Laem
Chabang Road (Motorway No. 7) within Nong Kham Sub-District, Si Racha
District, Chon Buri Province, Thailand.
Tpark Sriracha
Tpark Wangnoi 1
Sale office located in the TPark Sriracha (Bangphra) Project on Chon Buri-
Pattaya Road (Highway No. 7) within Bang Phra Sub-District, Si Racha District,
Chon Buri Province, Thailand.
Sale office and custom office located in the TPark Wang Noi 1 Project on
Phahon Yothin Road (Highway No. 1) around km. station 55+900 within
Phayom Sub-District, Wang Noi District, Phra Nakhon Si Ayutthaya Province,
Thailand.
Tpark Eastern Seaboard 2A Sale office cabinet located in the TPark Eastern Seaboard 2A Project on
Chachoengsao-Sattahip Road (Highway No. 331) within Bo Win Sub-District,
Si Racha District, Chon Buri Province, Thailand.
Tpark Laemchabang
Tpark Samut Sakhon
Tpark Lamphun
Tpark Bangpakong
Sale office cabinet located in the TPark Laemchabang 1 Project on Bypass-
Laem Chabang Road (Motorway No. 7) within Nong Kham Sub-District, Si
Racha District, Chon Buri Province, Thailand.
Sale office cabinet located in the TPark Samut Sakhon Project on Rama 2
Road or Thon Buri-Pak Tho Road (Highway No. 35) within Bang Krachao Sub-
District, Mueang District, Samut Sakhon Province, Thailand.
Sale office cabinet located in the TPark Lamphun Project on Chiang Mai-
Lamphun Road (Highway No. 11) within Umong Sub-District, Mueang District,
Lamphun Province, Thailand.
Sale office cabinet located in the TPark Bangpakong km. 46 Project on Bang
Na – Bang Pakong Road (Highway No. 34) within Bang Samak Sub-District,
Bang Pakong District, Cha Choeng Sao Province, Thailand.
Book Value
$'000
589
86
414
397
519
28
12
14
148
3
Modena by Fraser, Bangkok A 239-room, 14-story hotel with an underground floor at Rama IV Road and
Ratchadaphisek Road (also known as Khlong Toei intersection), within Khlong
Toei Sub-District, Khlong Toei District, Bangkok Metropolis.
The Ascott Sathorn,
Bangkok
A contemporary serviced apartment building at 7 South Sathorn Road,
Yannawa, Sathon, Bangkok 10120. This 35-story building houses 177 serviced
apartment units, managed by the Ascott Group Limited.
29,464
88,058
19_0111_FPL_FR2019_FS_v18.indd 375
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376 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
PROPERTY, PLANT AND EQUIPMENT (CONT’D)
HELD THROUGH FRASERS HOSPITALITY TRUST
Book Value
$'000
Singapore
InterContinental
Singapore(2)
Malaysia
406 hotel rooms at 80 Middle Road.
Leasehold (lease expires year 2089), gross floor area – 49,987 sqm
477,906
The Westin Kuala Lumpur(2) 443 hotel rooms at 199 Jalan Bukit Bintang, Kuala Lumpur.
144,605
Freehold, gross floor area – 79,593 sqm
Japan
ANA Crown Plaza Kobe(2)
593 hotel rooms at 1-Chome, Kitano-Cho, Chuo-Ku, Kobe.
Freehold, gross floor area – 136,657 sqm
148,091
Australia
Novotel Sydney Darling
Square(2)
230 hotel rooms at Novotel Rockford Darling Harbour, 17 Little Pier Street,
Darling Harbour, New South Wales.
Leasehold (lease expires year 2098), gross floor area – 12,128 sqm
82,772
Sofitel Sydney Wentworth(2) 436 hotel rooms at 61-101 Phillip Street, Sydney, New South Wales.
Freehold, gross floor area – 33,589 sqm
Novotel Melbourne on
Collins(2)
380 hotel rooms at 270 Collins Street, Melbourne, Victoria.
Freehold, gross floor area – 20,860 sqm
170,118
218,835
United Kingdom
Park International London(2) 171 hotel rooms at 117-129 Cromwell Road, South Kensington, London.
60,139
Leasehold (lease expires 2098), gross floor area – 6,825 sqm
ibis Styles London
Gloucester Road(2)
85 hotel rooms at 108, 110 and 112 Cromwell Road, London.
Leasehold (lease expires 2098), gross floor area – 2,512 sqm
LAND AND BUILDING
OTHERS
TOTAL PROPERTY, PLANT AND EQUIPMENT
29,453
2,008,110
141,354
2,149,464
(2)
To align to the Group's accounting policy, the property, plant and equipment held under FHT are stated at cost less accumulated depreciation and any
impairment.
19_0111_FPL_FR2019_FS_v18.indd 376
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Annual Report 2019 377
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED PROPERTIES HELD FOR SALE
Australia
Lumiere
Central Park
Putney Hill
Queens Riverside
China
Chengdu Logistics Hub
Baitang One
United Kingdom
Wandsworth Riverside
Quarter
Freehold land of approximately 3,966 sqm situated at former Regent Theatre,
Frontages on George Street, Bathurst & Kent Street, Sydney, New South
Wales. The development has a gross floor area of 61,146 sqm and consists of
1 retail podium, 456 residential units, 201 serviced apartments , 3 retail units
and 19 commercial suites.
Freehold land of approximately 48,000 sqm situated at Broadway, Sydney,
New South Wales for a proposed mixed development of approximately 2,069
residential apartment units of approximately 107,287 sqm of gross floor area
for sale and commercial space of approximately 21,715 sqm of gross floor
area for sale.
Freehold land of approximately 113,500 sqm situated at Putney, Sydney, New
South Wales for a proposed development comprising 145 apartments and
16 houses of approximately 15,321 sqm of gross floor area for sale.
Freehold land of approximately 11,895 sqm situated at East Perth for
a proposed mixed development comprising approximately 500 private
apartment units and 12 commercial space of a total of approximately
41,287 sqm of gross floor area for sale.
Leasehold land (lease expires year 2057) of approximately 195,846 sqm
situated at Chengdu. Phase 1 of the development has a gross floor area of
161,288 sqm and consists of 136 office units, 27 warehouses and 766 car park
lots. Phase 2 has a gross floor area of 154,049 sqm and consists of 149 office
units, 14 retail units and 119 car park lots. Phase 4 has a gross floor area of
163,527 sqm and consists of 270 office units, 88 retail units and 368 car park
lots.
Leasehold land (lease expires year 2074) of approximately 314,501 sqm
situated at Gongye Yuan District, Nan Shi Jie Dong, Suzhou. Phase 1 of the
development has a gross floor area of 132,520 sqm and consists of 968
apartment units. Phase 2 has a gross floor area of 154,049 sqm and consists
of 898 apartment units. Phase 3A has a gross floor area of 77,711 sqm and
consists of 706 apartment units. Phase 3B has a gross floor area of 57,893
sqm and consists of 380 apartment units. Phase 3C1 has a gross floor area of
78,939 sqm and consists of 706 apartment units.
Freehold land of approximately 40,000 sqm situated at south bank of River
Thames, London for a proposed residential and commercial development
of 579 units and ancillary office and retail space of a total of approximately
52,000 sqm of gross floor area.
Camberwell Green
Development comprising 92 private apartments, 9 shared ownership units
and 8 commercial units, with total floor area of approximately 8,800 sqm
situated at Camberwell Passage, London SE5 0AU.
Effective
Interest
%
100.0
50.0
100.0
100.0
80.0
100.0
100.0
100.0
19_0111_FPL_FR2019_FS_v18.indd 377
11/12/19 5:43 PM
378 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED PROPERTIES HELD FOR SALE (CONT’D)
Thailand
Sky Villas
The Grand - Alpina
A residential development part of The Ascott Sathorn Bangkok building
situated at 7 South Sathorn Road, Yannawa, Sathorn, Bangkok, comprising 3
units to go.
A residential development on freehold subdivided land of approximately
15,347 sqm situated at Boromarajajonani Road, within Sala Thammasop Sub-
District, Thawi Watthana District, Bangkok Metropolis, comprising 2 units to
go.
The Grand
- Lake Grandiose
A residential development on freehold subdivided land of approximately
65,846 sqm situated at Rama 2 Road around km. station 16+400, within
Phan Tay Norasing Sub-District, Mueang District, Samut Sakhon Province,
comprising 3 units to go.
The Grand - The Grace
(Zeen Scenery)
A residential development on freehold subdivided land of approximately
60,470 sqm situated at Rama 2 Road around km. station 16+400, within
Phan Tay Norasing Sub-District, Mueang District, Samut Sakhon Province,
comprising 3 units to go.
The Grand - Bliss
The Grand - Granddio
A residential development on freehold subdivided land of approximately
98,172 sqm situated at Rama 2 Road around km. station 16+400, within
Phan Tay Norasing Sub-District, Mueang District, Samut Sakhon Province,
comprising 24 units to go.
A residential development on freehold subdivided land of approximately
133,022 sqm situated at Rama 2 Road around km. station 16+400, within
Phan Tay Norasing Sub-District, Mueang District, Samut Sakhon Province,
comprising 6 units to go.
The Grand Lux Bangna-
Suanluang
A residential development on freehold subdivided land of approximately
58,327 sqm situated on parallel road off Kanchanaphisek Road (Highway
No. 9 - Eastern Outer Ring Road) within Dokmai Sub-District, Prawet District,
Bangkok Metropolis, comprising 4 units to go.
Two Grande Monaco
Bangna-Wongwaen
A residential development on freehold subdivided land of approximately
69,561 sqm situated on parallel road off Kanchanaphisek Road (Highway
No. 9 - Eastern Outer Ring Road) within Dokmai Sub-District, Prawet District,
Bangkok Metropolis, comprising 1 unit to go.
Golden Prestige
Watcharapol-
Sukhaphiban 5
Grandio Bangkae
A residential development on freehold subdivided land situated on public
road off Sukhapiban 5 Road, within O Ngoen Sub-District, Sai Mai District,
Bangkok Metropolis, comprising 4 units to go.
A residential development on freehold subdivided land of approximately
113,523 sqm situated at Soi Kanchanaphisek 5/1 (Soi Moo Ban Suk San 6)
off Kanchanaphisek Road, within Lak Song Sub-District, Bang Khae District,
Bangkok Metropolis, comprising 6 units to go.
Effective
Interest
%
33.3
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
19_0111_FPL_FR2019_FS_v18.indd 378
11/12/19 5:43 PM
Annual Report 2019 379
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Grandio Petchkasem 81
A residential development on freehold subdivided land of approximately
41,764 sqm situated at Soi Phet Kasem 81 (Soi Ma Charoen) off Phet Kasem
Road, within Nong Khaem Sub-District, Nong Khaem District, Bangkok
Metropolis, comprising 15 units to go.
Golden Neo 2 Bangna-
Kingkaew
A residential development on freehold subdivided land of approximately
86,284 sqm situated at Kingkaeo Road, within Racha Thewa Sub-District,
Bang Phli District, Samut Prakan Province, comprising 18 units to go.
Golden Neo Chaiyaphruek-
Wongwaen
A residential development on freehold subdivided land of approximately
32,676 sqm situated at Kruai - Sai Noi Road, within Sai Noi Sub-District, Sai
Noi District, Nonthaburi Province, comprising 3 units to go.
Golden Neo Ladphrao-
Kasetnawamin
A residential development on freehold subdivided land of approximately
36,962 sqm situated at road off Soi Nawamin 42 Yeak 27 (Soi Suwan Prasit)
Nawamin Road, within Khlong Kum Sub-District, Bueng Kum District, Bangkok
Metropolis, comprising 8 units to go.
Golden Neo Ramintra-
Wongwaen
A residential development on freehold subdivided land of approximately
24,787 sqm situated at public road off parallel road Kanchanaphisek Road
(Highways No. 9) within Ram Inthra Sub-District, Khan Na Yao District, Bang
Chan Sub-District, Khlong Sam Wa District, Bangkok Metropolis, comprising
10 units to go.
Golden Neo Sathorn
A residential development on freehold subdivided land of approximately
73,477 sqm situated at Kanlapaphruek Road, within Bang Wa Sub-District,
Phasi Charoen District, Bangkok Metropolis, comprising 16 units to go.
Golden Neo 2 Ladphrao-
Kasetnawamin
A residential development on freehold subdivided land of approximately
32,584 sqm situated on private road off Soi Nawamin 42 Yeak 27 (Soi Suwan
Prasit), Nawamin Road, within Khlong Kum Sub-District, Bueng Kum District,
Bangkok Metropolis, comprising 23 units to go.
Golden Neo
Chaengwattana-Muang
Thong
A residential development on freehold subdivided land of approximately
24,346 sqm situated at Tiwanon Road, within Ban Mai Sub-District, Pak Kret
District, Nonthaburi Province, comprising 8 units to go.
Golden Neo Rama 2
A residential development on freehold subdivided land of approximately
24,346 sqm situated at Phan Tay Norasing - Jedsadwithi Road off Rama 2
Road, within Phan Tay Norasing Sub-District, Mueang District, Samut Sakhon
Province, comprising 41 units to go.
Golden City
Chaengwattana-Muang
Thong
A residential development on freehold subdivided land of approximately
14,115 sqm situated at Tiwanon Road, within Ban Mai Sub-District, Pak Kret
District, Nonthaburi Province, comprising 14 units to go.
Effective
Interest
%
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
19_0111_FPL_FR2019_FS_v18.indd 379
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380 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Golden City Sathorn
A residential development on freehold subdivided land of approximately
23,104 sqm situated on private road off Kanlapaphruek Road, within Bang Wa
Sub-District, Phasi Charoen District, Bangkok Metropolis, comprising 5 units
to go.
Golden Town
Rattanathibet-Bangphlu
Station
A residential development on freehold subdivided land of approximately
17,802 sqm situated at Chan Thong Iam Road within Bang Rak Phatthana
Sub-District, Bang Bua Thong District, Nonthaburi Province, comprising 1 unit
to go.
Golden Town Suksawat-
Phuttha Bucha
A residential development on freehold subdivided land of approximately
13,430 sqm situated at Phuttha Bucha 36 Yaek 1, Phuttha Bucha Road, within
Bang Mot Sub-District, Thung Khru District, Bangkok Metropolis, comprising
1 unit to go.
Golden Town
Chaiyaphruek-
Wongwaen
A residential development on freehold subdivided land of approximately
59,990 sqm situated at Bang Kruai - Sai Noi Road, within Sai Noi Sub-District,
Sai Noi District, Nonthaburi Province, comprising 78 units to go.
Golden Town 3 Suksawat-
Phuttha Bucha
A residential development on freehold subdivided land of approximately
80,744 sqm situated at Phuttha Bucha 36 Yaek 1, Phuttha Bucha Road, within
Bang Mot Sub-District, Thung Khru District, Bangkok Metropolis, comprising
61 units to go.
Golden Town
Rattanathibet-Sai Ma
Station
A residential development on freehold subdivided land of approximately
40,406 sqm situated at Soi Sai Ma 11 (Wat Pleng - Wat Bang Na Road), off
Ban Sai Ma Road, within Sai Ma Sub-District, Mueang District, Nonthaburi
Province, comprising 14 units to go.
Golden Town 2 Pinklao-
Charan Sanitwong
A residential development on freehold subdivided land of approximately
82,916 sqm situated at Bang Kruai - Sai Noi Road off Charan Sanit Wong Road,
within Bang Kruai Sub-District And Bang Si Thong Sub-District, Bang Kruai
District, Nonthaburi Province, comprising 98 units to go.
Golden Town Vibhavadi-
Chaengwattana
A residential development on freehold subdivided land of approximately
53,518 sqm situated at Wat Welu Wanaram Road off Song Prapha Road,
within Thung Song Hong And Don Mueang Sub-District, Lak Si And Don
Mueang District, Bangkok Metropolis, comprising 48 units to go.
Golden Town Sathorn
A residential development on freehold subdivided land of approximately
63,143 sqm situated at Kanlapaphruek Road, within Bang Wa Sub-District,
Phasi Charoen District, Bangkok Metropolis, comprising 91 units to go.
Golden Town
Wongsawang-Khae Rai
A residential development on freehold subdivided land of approximately
45,624 sqm situated at Nonthaburi 1 Road, within Suan Yai Sub-District,
Mueang District, Nonthaburi Province, comprising 64 units to go.
Effective
Interest
%
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
19_0111_FPL_FR2019_FS_v18.indd 380
11/12/19 5:43 PM
Annual Report 2019 381
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Golden Town Ramintra-
Wongwaen
A residential development on freehold subdivided land of approximately
72,866 sqm located on public road off parallel road to Kanchanaphisek Road
(Highways No. 9), within Ram Inthra Sub-District, Khan Na Yao District, within
Tha Raeng Sub-District, Bang Khen District, Bangkok Metropolis, comprising
50 units to go.
Golden Town Petchkasem A residential development on freehold subdivided land of approximately
63,816 sqm situated at Soi Phetkasem 108 off Phetkasem Road, within
Nong Khang Phlu Sub-District, Nong Khaem District, Bangkok Metropolis,
comprising 27 units to go.
Golden Town Bangkae
A residential development on freehold subdivided land of approximately
53,094 sqm situated at Soi Kanchanaphisek 5/1 (Soi Moo Ban Suk San 6)
off Kanchanaphisek Road, within Lak Song Sub-District, Bang Khae District,
Bangkok Metropolis, comprising 14 units to go.
Golden Town Srinakarin-
Sukhumvit
in form of
A residential development on freehold subdivided
approximately 56,753 sqm situated at Soi Sap Phatthana off Phraekkasa Road,
within Phraekkasa Sub-District, Mueang District, Samut Prakan Province,
comprising 28 units to go.
land
Golden Town 3 Ladphrao-
Kasetnawamin
in form of
A residential development on freehold subdivided
approximately 32,550 sqm situated at private road off Soi Nawamin 42 Yeak
27 (Soi Suwan Prasit) Nawamin Road, within Khlong Kum Sub-District, Bueng
Kum District, Bangkok Metropolis, comprising 12 units to go.
land
Golden Town 2 Rama 2
A residential development on freehold subdivided
in form of
approximately 40,658 sqm situated at Phan Tay Norasing - Jedsadwithi Road
off Rama 2 Road, within Phan Tay Norasing Sub-District, Mueang District,
Samut Sakhon Province, comprising 37 units to go.
land
Golden Town Sriracha-
Assumption
A residential development on freehold subdivided land of approximately
83,024 sqm situated at Kao Kilo Road, within Surasak Sub-District, Sriracha
District, Chonburi Province, comprising 152 units to go.
Golden Town
Phaholyothin-
Saphanmai
A residential development on freehold subdivided land of approximately
82,276 sqm situated at On Soi Phahon Yothin 54/1 off Phahon Yothin Road
within Sai Mai Sub-District, Sai Mai District, Bangkok Metropolis, comprising
49 units to go.
Golden Town Chiang Rai
A residential development on freehold subdivided land of approximately
52,310 sqm situated at Phahon Yothin Road within Ban Du Sub-District,
Mueang District, Chiang Rai Province, comprising 7 units to go.
Effective
Interest
%
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
19_0111_FPL_FR2019_FS_v18.indd 381
11/12/19 5:43 PM
382 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
COMPLETED PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Golden Town Sukhumvit-
Bearing Station
A residential development on freehold subdivided land of approximately
38,858 sqm situated at Soi Thetsaban Samrong Tai 6, off Thang Rotfai Sai Kao
Road, within Samrong Tai Sub-District, Phra Pradaeng District, Samut Prakan
Province, comprising 60 units to go.
Golden Town 3 Bangna-
Suanluang
A residential development on freehold subdivided land of approximately
56,689 sqm situated on parallel road off Kanchanaphisek Road (Highway
No. 9 - Eastern Outer Ring Road) within Dokmai Sub-District, Prawet District,
Bangkok Metropolis, comprising 119 units to go.
Golden Town
Ngamwongwan-Khae
Rai
A residential development on freehold subdivided land of approximately
47,787 sqm situated at Soi Tiwanon 45, Tiwanon Road, within Tha Sai Sub-
District, Mueang District, Nonthaburi Province, comprising 37 units to go.
Golden Town Ayutthaya
A residential development on freehold subdivided land of approximately
68,464 sqm situated on parallel road off Asia Road (Highway No. 32) within
Ban Krot Sub-District, Bang Pa-In District, Phra Nakhon Si Ayutthaya Province,
comprising 65 units to go.
Golden Town 2 Ladphrao-
Kasetnawamin
A residential development on freehold subdivided land of approximately
53,104 sqm situated on private road off Soi Nawamin 42 Yeak 27 (Soi Suwan
Prasit) Nawamin Road, within Khlong Kum Sub-District, Ueng Kum District,
Bangkok Metropolis, comprising 2 units to go.
Golden Town Rangsit-
Klong 3
A residential development on freehold subdivided land of approximately
73,840 sqm situated at Liap Khlong Sam Road, within Khlong Sam Sub-
District, Khlong Luang District, Pathum Thani Province, comprising 16 units
to go.
Golden Town
Chachoengsao
A residential development on freehold subdivided land of approximately
71,415 sqm situated at Watphanitaram-Watbangphra Road (Highway
No. 3315) around km. station 0+650 off Siri Sothon Road (Highways No. 314)
within Bang Krod Sub-District, Ban Pho District, Chachoengsao Province,
comprising 10 units to go.
Golden Town Petchkasem-
Phutthamonthon Sai 3
A residential development on freehold subdivided land of approximately
62,047 sqm situated at Phuttha Monthon Sai 3 Road within Nong Khang Phlu
Sub-District, Nong Khaem District, Bangkok Metropolis, comprising 17 units
to go.
Golden Biz Bangna-
Kingkaew
A residential development on freehold subdivided land situated at King Kaeo
Road, within Racha Thewa Sub-District, Bang Phli District, Samut Prakan
Province, comprising 9 units to go.
Effective
Interest
%
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
19_0111_FPL_FR2019_FS_v18.indd 382
11/12/19 5:43 PM
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE
Singapore
Rivière
Australia
land
Leasehold
(lease expires year 2117) of
approximately 13,482 sqm at Lot 1637L Town
Subdivision 21 at Jiak Kim Street for the development
of 455 apartment units of approximately 46,865 sqm
of gross floor area for sale.
Annual Report 2019 383
Estimated
Date of
Completion
Effective
Interest
%
3rd Quarter 2022
100.0
Frasers Landing, Western
Australia
A residential development comprising 450 land lots
to go.
3rd Quarter 2037
100.0
Fairwater, New South
Wales
A residential development comprising 289 apartment,
house and land lots to go.
2nd Quarter 2023
100.0
The Gallery, New South
Wales
A residential development comprising 26 apartment,
MD housing, house and land lots to go.
2nd Quarter 2023
100.0
Tailor's Walk, New South
Wales
A residential development comprising 12 apartment
and MD housing lots to go.
3rd Quarter 2020
100.0
Macquarie Park, New
South Wales
A
residential development
apartment and other lots to go.
comprising 2,370
3rd Quarter 2031
100.0
Warriewood, New South
A development comprising 1 superlot to go.
1st Quarter 2020
100.0
Wales
Ed Square, New South
Wales
A mixed development comprising 1,813 apartment,
MD housing and 3 retail lots to go.
2nd Quarter 2027
100.0
Aqua, New South Wales
A residential development comprising 53 apartment
lots to go.
3rd Quarter 2021
100.0
Hamilton Reach,
Queensland
A residential development comprising 413 apartment,
MD housing, house and land lots to go.
1st Quarter 2027
100.0
Cova, Queensland
A residential development comprising 65 MD housing,
house and land lots to go.
1st Quarter 2021
100.0
Yungaba, Queensland
A residential development comprising 1 apartment
lot to go.
1st Quarter 2020
100.0
Brookhaven, Queensland
A residential development comprising 1,366 land lots
to go.
4th Quarter 2025
100.0
Deebing Heights,
Queensland
A residential development comprising 926 land lots
to go.
2nd Quarter 2028
100.0
Keperra, Queensland
A residential development comprising 471 MD
housing and land lots to go.
3rd Quarter 2026
100.0
19_0111_FPL_FR2019_FS_v18.indd 383
11/12/19 5:43 PM
384 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Estimated
Date of
Completion
Effective
Interest
%
Australia (cont’d)
Carina, Queensland
A residential development comprising 193 MD
housing and land lots to go.
2nd Quarter 2022
100.0
Found Carlton, Victoria
A residential development comprising 134 apartment
and MD housing lots to go.
4th Quarter 2022
65.0
Burwood Brickworks,
Victoria
A residential development comprising 692 MD
housing, land and apartment lots to go.
1st Quarter 2022
100.0
Greenvale Gardens,
Victoria
A residential development comprising 2 MD housing
and land lots to go.
1st Quarter 2020
100.0
Mambourin, Victoria
A residential development comprising 1,197 land lots
and 3 retail lots to go.
4th Quarter 2026
100.0
Cockburn Living, Western
Australia
A residential development comprising 355 apartment
lots to go.
3rd Quarter 2029
100.0
Port Coogee, Western
Australia
A residential development comprising 548 apartment
and land lots to go.
2nd Quarter 2033
100.0
Baldivis Grove, Western
Australia
A residential development comprising 282 land lots
to go.
3rd Quarter 2029
100.0
The Waterfront, New
South Wales
A residential development comprising 987 MD
housing, house and land lots to go.
2nd Quarter 2027
50.0
Berwick Waters, Victoria
A residential development comprising 910 land lots
to go.
1st Quarter 2026
45.0
Parkside Parkville, Victoria A residential development comprising 444 apartment
2nd Quarter 2026
50.0
lots to go.
Wallara Waters, Victoria
A residential development comprising 1,448 land lots
to go.
1st Quarter 2033
50.0
Valley Park, Victoria
A residential development comprising 46 MD housing
and land lots to go.
4th Quarter 2020
100.0
Baldivis Parks, Western
Australia
A residential development comprising 768 MD
housing and land lots to go.
3rd Quarter 2031
50.0
Greenwood, Western
Australia
A residential development comprising 85 MD housing
and land lots to go.
4th Quarter 2022
100.0
Nu Pure, Eastern Creek,
New South Wales
Built form project with estimated gross lettable area
of 20,575 sqm.
3rd Quarter 2020
100.0
Huhtamaki & Phoenix,
Berrinba, Queensland
Built form project with estimated gross lettable area
of 22,634 sqm.
2nd Quarter 2020
100.0
19_0111_FPL_FR2019_FS_v18.indd 384
11/12/19 5:43 PM
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Annual Report 2019 385
Estimated
Date of
Completion
Effective
Interest
%
Australia (cont’d)
CEVA, Berrinba,
Queensland
Built form project with estimated gross lettable area
of 20,800 sqm.
2nd Quarter 2020
100.0
Arlec & Spec, Truganina,
Victoria
Built form project with estimated gross lettable area
of 35,771 sqm.
1st Quarter 2020
100.0
Gale Pacific & Spec,
Braeside, Victoria
Built form project with estimated gross lettable area
of 19,851 sqm.
1st Quarter 2020
100.0
Puma, Braeside, Victoria
Built form project with estimated gross lettable area
of 28,198 sqm.
1st Quarter 2020
100.0
24 Archer Road,
Truganina, Victoria
form project with net
Built
37,353 sqm.
lettable area of
–
100.0
33 & 15 Archer Road,
Truganina, Victoria
form project with net
Built
30,157 sqm.
lettable area of
–
100.0
Lot 2 Horsley Park Drive,
New South Wales
form project with net
Built
18,872 sqm.
lettable area of
–
100.0
Lot 3 Burilda Close,
Wetherill Park, New
South Wales
22 Hanson Place, Eastern
Creek, New South
Wales
form project with net
Built
26,249 sqm.
lettable area of
–
100.0
form project with net
Built
26,690 sqm.
lettable area of
–
100.0
15 Muir Road, Chullora,
New South Wales
form project with net
Built
22,208 sqm.
lettable area of
–
100.0
11 – 27 Doriemus Drive,
Truganina, Victoria
form project with net
Built
43,214 sqm.
lettable area of
–
100.0
58 – 76 Naxos Way &
68 Atlantic Drive,
Keysborough, Victoria
form project with net
Built
28,605 sqm.
lettable area of
–
100.0
39 Naxos Way,
Keysborough, Victoria
form project with net
Built
20,472 sqm.
lettable area of
–
100.0
1 Arthur Dixon Court,
Yatala, Queensland
form project with net
Built
13,643 sqm.
lettable area of
–
100.0
75 – 79 Canterbury Road,
Braeside, Queensland
form project with net
Built
14,263 sqm.
lettable area of
–
100.0
25 – 39 Australand Drive,
Berrinba, Queensland
form project with net
Built
12,377 sqm.
lettable area of
–
100.0
19_0111_FPL_FR2019_FS_v18.indd 385
11/12/19 5:43 PM
386 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Australia (cont’d)
Eastern Creek – Stage 2,
New South Wales
Industrial type of estate with an estimated total
saleable area of 8,688 sqm.
Eastern Creek – Stage 3,
New South Wales
Industrial type of estate with an estimated total
saleable area of 7,541 sqm.
Macquarie Park, New
South Wales
Office type of estate with an estimated total saleable
area of 7,810 sqm.
Horsley Park, New South
Wales
Industrial type of estate with an estimated total
saleable area of 64,622 sqm.
Kemps Creek East, New
South Wales
Industrial type of estate with an estimated total
saleable area of 182,918 sqm.
Richlands, Queensland
Industrial type of estate with an estimated total
saleable area of 22,222 sqm.
Yatala, Queensland
Industrial type of estate with an estimated total
saleable area of 112,744 sqm.
Berrinba, Queensland
Industrial type of estate with an estimated total
saleable area of 69,714 sqm.
Keysborough – Stage 6,
Victoria
Industrial type of estate with an estimated total
saleable area of 5,394 sqm.
Keysborough – Stage 8,
Victoria
Industrial type of estate with an estimated total
saleable area of 5,514 sqm.
Truganina – Stage 15,
West Park, Victoria
Industrial type of estate with an estimated total
saleable area of 56,152 sqm.
Braeside, Victoria
Industrial type of estate with an estimated total
saleable area of 65,099 sqm.
Epping – Stage 1, Victoria
Industrial type of estate with an estimated total
saleable area of 225,146 sqm.
Epping – Stage 2, Victoria
Industrial type of estate with an estimated total
saleable area of 232,650 sqm.
Dandenong South –
Stage 1, Victoria
Industrial type of estate with an estimated total
saleable area of 249,528 sqm.
Dandenong South –
Stage 2, Victoria
Industrial type of estate with an estimated total
saleable area of 106,238 sqm.
Estimated
Date of
Completion
Effective
Interest
%
–
100.0
–
–
50.0
50.0
–
100.0
–
50.0
–
100.0
–
100.0
–
100.0
–
100.0
–
100.0
–
100.0
–
100.0
–
100.0
–
100.0
–
100.0
–
100.0
19_0111_FPL_FR2019_FS_v18.indd 386
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Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Annual Report 2019 387
Estimated
Date of
Completion
Effective
Interest
%
Australia (cont’d)
Burwood, Victoria
Retail type of estate with an estimated total saleable
area of 24,900 sqm.
1st Quarter 2020
100.0
Western Sydney Parklands
Trust, New South Wales
Retail type of estate with an estimated total saleable
area of 151,408 sqm.
1st Quarter 2020
100.0
China
Chengdu Logistics Hub
United Kingdom
Wandsworth Riverside
Quarter
land
Leasehold
(lease expires year 2057) of
approximately 195,846 sqm situated at Chengdu for
a proposed industrial/commercial development of
approximately 548,065 sqm gross floor area for sale,
which is separated into Phase 1 of 161,288 sqm and
Phase 2 to 4 of 386,777 sqm. Phase 1, 2 and 4 of the
development were completed. Phase 3 was sold in
September 2012. Phase 2A is yet to be developed.
3rd Quarter 2021
80.0
Freehold land of approximately 40,000 sqm situated
at south bank of River Thames, London for a proposed
residential and commercial development of 165
residential units and 4 commercial units of a total of
approximately 15,500 sqm of gross floor area.
2nd Quarter 2020
100.0
Baildon project
Freehold land of approximately 5,870 sqm situated at
Baildon.
Central House project
Freehold land of approximately 9,012 sqm situated in
Aldgate.
–
100.0
–
100.0
Vietnam
Q2 Thao Dien
Leasehold land of approximately 7,956 sqm located
at district 2, Ho Chi Minh city for a residential
development of a high-rise apartment building
combined with commercial and office services of
approximately 56,564 sqm of gross floor area, 6
villas with gross floor area of 72 to 89 sqm each and
12 townhouses with gross floor area of 108 sqm to
126 sqm each.
1st Quarter 2021
70.0
19_0111_FPL_FR2019_FS_v18.indd 387
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388 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Thailand
The Grand - Alpina
The Grand - The Island
(Courtyard)
The Grand - The Grand
Rama P.5
The Grand - The Grace (Zeen
Scenery)
The Grand - The Grand
Rama P.8
The Grand - Bliss
The Grand Rama P.14
Freehold subdivided land in form of approximately
153,472 sqm situated at Boromarajajonani Road,
within Sala Thammasop Sub-District, Thawi Watthana
District, Bangkok Metropolis, for a proposed residential
development of 131 residential units total of
approximately 87,276 sqm gross area for sale.
Freehold subdivided land in form of approximately
80,232 sqm situated at Rama 2 Road around km.
station 16+400, within Phan Tay Norasing Sub-District,
Mueang District, Samut Sakhon Province, for a proposed
residential development of 89 residential units total of
approximately 46,447 sqm gross area for sale.
Freehold land of approximately 1,392 sqm situated at
Rama 2 Road around km. station 16+400, within Phan
Tay Norasing Sub-District, Mueang District, Samut
Sakhon Province.
Freehold subdivided land in form of approximately
60,470 sqm situated at Rama 2 Road around km.
station 16+400, within Phan Tay Norasing Sub-District,
Mueang District, Samut Sakhon Province, for a proposed
residential development of 100 residential units total
of approximately 38,232 sqm gross area for sale.
Freehold land of approximately 13,542 sqm situated at
Rama 2 Road around km. station 16+400, within Phan
Tay Norasing Sub-District, Mueang District, Samut
Sakhon Province.
Freehold subdivided land in form of approximately
98,172 sqm situated at Rama 2 Road around km.
station 16+400, within Phan Tay Norasing Sub-District,
Mueang District, Samut Sakhon Province for a proposed
residential development of 241 residential units total
of approximately 60,804 sqm gross area for sale.
Freehold land of approximately 13,864 sqm situated at
Rama 2 Road around km. station 16+400, within Phan
Tay Norasing Sub-District, Mueang District, Samut
Sakhon Province.
Estimated
Date of
Completion
Effective
Interest
%
1st Quarter 2022
55.6
1st Quarter 2021
55.6
1st Quarter 2023
55.6
1st Quarter 2021
55.6
1st Quarter 2023
55.6
2nd Quarter 2020
55.6
1st Quarter 2023
55.6
19_0111_FPL_FR2019_FS_v18.indd 388
11/12/19 5:43 PM
Annual Report 2019 389
Estimated
Date of
Completion
Effective
Interest
%
4th Quarter 2020
55.6
4th Quarter 2020
55.6
1st Quarter 2022
55.6
3rd Quarter 2021
55.6
1st Quarter 2020
55.6
3rd Quarter 2023
55.6
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Granddio
De Pine
The Grand Lux Bangna-
Suanluang
Two Grande Monaco
Bangna-Wongwaen
Golden Prestige
Watcharapol-
Sukhaphiban 5
Grandio Ramintra-
Wongwaen
Freehold subdivided land in form of approximately
133,022 sqm situated at Rama 2 Road around km.
station 16+400, within Phan Tay Norasing Sub-District,
Mueang District, Samut Sakhon Province, for a proposed
residential development of 246 residential units total
of approximately 80,568 sqm gross area for sale.
Freehold subdivided land in form of approximately
159,264 sqm situated at Boromarajajonani Road,
within Sala Thammasop Sub-District, Thawi Watthana
District, Bangkok Metropolis, for a proposed residential
development of 213 residential units total of
approximately 99,108 sqm gross area for sale.
situated on parallel
Freehold subdivided land in form of approximately
58,327
road off
sqm
Kanchanaphisek Road
(Highway No. 9 - Eastern
Outer Ring Road) within Dokmai Sub-District,
Prawet District, Bangkok Metropolis, for a proposed
residential development of 61 residential units total of
approximately 32,189 sqm gross area for sale.
situated on parallel
Freehold subdivided land in form of approximately
road off
sqm
69,561
Kanchanaphisek Road
(Highway No. 9 - Eastern
Outer Ring Road) within Dokmai Sub-District,
Prawet District, Bangkok Metropolis, for a proposed
residential development of 77 residential units total of
approximately 41,813 sqm gross area for sale.
Freehold subdivided land in form of approximately
62,784 sqm situated on public road off Sukhapiban 5
Road, within O Ngoen Sub-District, Sai Mai District,
for a proposed residential
Bangkok Metropolis,
development of 152 residential units total of
approximately 38,325 sqm gross area for sale.
sqm
situated on parallel
Freehold subdivided land in form of approximately
109,589
road off
Kanchanaphisek Road (Highways No. 9) around km.
station 38+500 and on Soi Kanchanaphisek 6/1 off
Kanchanaphisek Road (Highways No. 9) within Tha
Raeng Sub-District, Bang Khen District, Bangkok
Metropolis, for a proposed residential development
of 269 residential units total of approximately 66,147
sqm gross area for sale.
19_0111_FPL_FR2019_FS_v18.indd 389
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390 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Grandio Bangkae
Grandio Petchkasem 81
Grandio Phaholyothin-
Rangsit
Grandio Rattanathibet-
Ratchapruek
Grandio 2 Rama 2
Golden Village Chiang Rai-
BigC Airport
Freehold subdivided land in form of approximately
113,523 sqm situated at Soi Kanchanaphisek 5/1 (Soi
Moo Ban Suk San 6) off Kanchanaphisek Road, within
Lak Song Sub-District, Bang Khae District, Bangkok
Metropolis, for a proposed residential development
of 261 residential units total of approximately 62,345
sqm gross area for sale.
Freehold subdivided land in form of approximately
41,764 sqm situated at Soi Phet Kasem 81 (Soi Ma
Charoen) off Phet Kasem Road, within Nong Khaem
Sub-District, Nong Khaem District, Bangkok Metropolis,
for a proposed residential development of 107
residential units total of approximately 23,491 sqm
gross area for sale.
Freehold subdivided land in form of approximately
191,296 sqm situated at Soi Khlong Luang 10,
Phaholyothin Road within Khlong Nueng Sub-District,
Khlong Luang District, Pathum Thani Province, for a
proposed residential development of 292 residential
units total of approximately 71,310 sqm gross area for
sale.
Freehold land of approximately 82,992 sqm situated at
Bang Kruai - Sai Noi Road within Bang Rak Phatthana
Sub-District, Bang Bua Thong District, Nonthaburi
Province.
Freehold land of approximately 32,990 sqm situated at
Rama 2 Road, within Phan Tay Norasing Sub-District,
Mueang District, Samut Sakhon Province.
Freehold subdivided land in form of approximately
55,041 sqm situated at Sanam Bin Road, within Ban Du
Sub-District, Mueang District, Chiang Rai Province, for
a proposed residential development of 46 residential
units.
Estimated
Date of
Completion
Effective
Interest
%
2nd Quarter 2020
55.6
1st Quarter 2022
55.6
2nd Quarter 2022
55.6
2nd Quarter 2024
55.6
1st Quarter 2024
55.6
1st Quarter 2022
55.6
Golden Village 2 Chiang
Rai-BigC Airport
Freehold subdivided land in form of approximately
18,733 sqm situated at Sanam Bin Road, within Ban Du
Sub-District, Mueang District, Chiang Rai Province.
3rd Quarter 2024
55.6
19_0111_FPL_FR2019_FS_v18.indd 390
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Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Golden Neo 2 Bangna-
Kingkaew
Golden Neo Ladphrao-
Kasetnawamin
Golden Neo Ramintra-
Wongwaen
Golden Neo Sathorn
Golden Neo 2 Sathorn
Golden Neo Bangkae
Golden Neo 2 Ladphrao-
Kasetnawamin
Freehold subdivided land in form of approximately
86,284 sqm situated at Kingkaew Road, within Racha
Thewa Sub-District, Bang Phli District, Samut Prakan
Province, for a proposed residential development of
473 residential units total of approximately 20,542
sqm gross area for sale.
Freehold subdivided land in form of approximately
36,962 sqm situated on private road off Soi Nawamin
42 Yeak 27 (Soi Suwan Prasit) Nawamin Road, within
Khlong Kum Sub-District, Bueng Kum District, Bangkok
Metropolis, for a proposed residential development
of 128 residential units total of approximately 20,156
sqm gross area for sale.
Freehold subdivided land in form of approximately
24,787 sqm situated on public road off parallel road
to Kanchanaphisek Road (Highways No. 9) within
Ram Inthra Sub-District, Khan Na Yao District, Bang
Chan Sub-District, Khlong Sam Wa District, Bangkok
Metropolis, for a proposed residential development of
79 residential units total of approximately 12,501 sqm
gross area for sale.
Freehold subdivided land in form of approximately
73,477 sqm situated at Kanlapaphruek Road, within
Bang Wa Sub-District, Phasi Charoen District, Bangkok
Metropolis, for a proposed residential development
of 237 residential units total of approximately 38,844
sqm gross area for sale.
Freehold subdivided land of approximately 89,740 sqm
situated on private road off Kanlapapruek Road, within
Bang Wa, Bang Khun Thian Sub-District, Phasi Charoen,
Chom Thong District, Bangkok Metropolis.
Freehold subdivided land of approximately 1,372 sqm
situated at Soi Kanchanaphisek 5/1 (Soi Moo Ban Suk
San 6), off Kanchanaphisek Road, within Lak Song Sub-
District, Bang Khae District, Bangkok Metropolis.
Freehold subdivided land in form of approximately
32,584 sqm situated on private road off Soi Nawamin
42 Yeak 27 (Soi Suwan Prasit), Nawamin Road, within
Khlong Kum Sub-District, Bueng Kum District, Bangkok
Metropolis, for a proposed residential development
of 106 residential units total of approximately 16,999
sqm gross area for sale.
Annual Report 2019 391
Estimated
Date of
Completion
Effective
Interest
%
1st Quarter 2024
55.6
1st Quarter 2020
55.6
1st Quarter 2020
55.6
2nd Quarter 2021
55.6
2nd Quarter 2021
55.6
3rd Quarter 2023
55.6
3rd Quarter 2020
55.4
19_0111_FPL_FR2019_FS_v18.indd 391
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392 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Golden Neo Bangna Km.5
Golden Neo
Chaengwattana-Muang
Thong
Freehold land of approximately 43,565 sqm situated at
Buanakarin Road, within Bang Kaeo Sub-District, Bang
Phli District, Samut Prakan Province.
Freehold subdivided land in form of approximately
50,669 sqm situated at Tiwanon Road, within Ban Mai
Sub-District, Pak Kret District, Nonthaburi Province, for
a proposed residential development of 156 residential
units total of approximately 24,346 sqm gross area for
sale.
Estimated
Date of
Completion
Effective
Interest
%
1st Quarter 2024
55.6
4th Quarter 2022
55.6
Golden Neo
Ngamwongwan-
Prachachuen
Freehold subdivided land in form of approximately
46,646 sqm situated at Soi Samakkee 63, within
Bang Talat Sub-District, Pak Kret District, Nonthaburi
Province.
3rd Quarter 2022
55.6
Golden Neo 2 Bangkae
Golden Neo 2 Rama 2
Golden Neo 3 Rama 2
Golden Neo 4 Rama 2
Golden Neo Charan
Sanitwong 35
Freehold subdivided land in form of approximately
77,378 sqm situated at Soi Kanchanaphisek 5/1 (Soi
Moo Ban Suk San 6) off Kanchanaphisek Road, within
Lak Song Sub-District, Bang Khae District, Bangkok
Metropolis.
Freehold subdivided land in form of approximately
39,944 sqm situated at Phan Tay Norasing - Jedsadwithi
Road off Rama 2 Road, within Phan Tay Norasing Sub-
District, Mueang District, Samut Sakhon Province, for
a proposed residential development of 168 residential
units total of approximately 21,308 sqm gross area for
sale.
Freehold subdivided land in form of approximately
92,376 sqm situated at Phan Tay Norasing - Jedsadwithi
Road off Rama 2 Road, within Phan Tay Norasing Sub-
District, Mueang District, Samut Sakhon Province, for
a proposed residential development of 424 residential
units total of approximately 32,970 sqm gross area for
sale.
Freehold subdivided land in form of approximately
57,015 sqm situated at Phan Tay Norasing - Jedsadwithi
Road off Rama 2 Road, within Phan Tay Norasing Sub-
District, Mueang District, Samut Sakhon Province.
Freehold subdivided land in form of approximately
8,664 sqm situated at Soi Charan Sanitwong 35 off
Charan Sanitwong Road within Bang Khun Si Sub-
District, Bangkok Noi District, Bangkok Metropolis.
1st Quarter 2022
55.6
3rd Quarter 2020
55.6
1st Quarter 2022
55.6
3rd Quarter 2025
55.6
4th Quarter 2022
55.6
19_0111_FPL_FR2019_FS_v18.indd 392
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Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Golden City Sathorn
Golden City
Chaengwattana-Muang
Thong
Golden City 2 Ladphrao-
Kasetnawamin
Golden Town Chaiyaphruek-
Wongwaen
Golden Town 3 Suksawat-
Phuttha Bucha
Golden Town 2 Pinklao-
Charan Sanitwong
Golden Town Vibhavadi-
Chaengwattana
Freehold subdivided land in form of approximately
23,104 sqm situated on private road off Kanlapaphruek
Road, within Bang Wa Sub-District, Phasi Charoen
District, Bangkok Metropolis, for a proposed residential
development of 119 residential units total of
approximately 10,600 sqm gross area for sale.
Freehold subdivided land in form of approximately
33,075 sqm situated at Tiwanon Road, within Ban Mai
Sub-District, Pak Kret District, Nonthaburi Province, for
a proposed residential development of 167 residential
units total of approximately 14,115 sqm gross area for
sale.
Freehold subdivided land in form of approximately
17,556 sqm situated on private road off Soi Nawamin 42
(Soi Suwan Prasit) Nawamin Road, within Khlong Kum
Sub-District, Bueng Kum District, Bangkok Metropolis.
Freehold subdivided land in form of approximately
59,990 sqm situated at Bang Kruai - Sai Noi Road,
within Sai Noi Sub-District, Sai Noi District, Nonthaburi
Province, for a proposed residential development of
393 residential units total of approximately 32,608
sqm gross area for sale.
Freehold subdivided land in form of approximately
80,744 sqm situated at Phuttha Bucha 36 Yaek 1,
Phuttha Bucha Road, within Bang Mot Sub-District,
Thung Khru District, Bangkok Metropolis, for a proposed
residential development of 481 residential units total
of approximately 38,118 sqm gross area for sale.
Freehold subdivided land in form of approximately
82,916 sqm situated at Bang Kruai - Sai Noi Road
off Charan Sanit Wong Road, within Bang Kruai
Sub-District and Bang Si Thong Sub-District, Bang
Kruai District, Nonthaburi Province, for a proposed
residential development of 473 residential units total
of approximately 41,615 sqm gross area for sale.
Freehold subdivided land in form of approximately
53,518 sqm situated at Wat Welu Wanaram Road
off Song Prapha Road, within Thung Song Hong and
Don Mueang Sub-District, Lak Si and Don Mueang
District, Bangkok Metropolis, for a proposed residential
development of 330 residential units total of
approximately 25,392 sqm gross area for sale.
Annual Report 2019 393
Estimated
Date of
Completion
Effective
Interest
%
1st Quarter 2022
55.6
4th Quarter 2022
55.6
3rd Quarter 2026
55.6
3rd Quarter 2020
55.6
3rd Quarter 2021
55.6
3rd Quarter 2020
55.6
3rd Quarter 2020
55.6
19_0111_FPL_FR2019_FS_v18.indd 393
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394 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Estimated
Date of
Completion
Effective
Interest
%
3rd Quarter 2024
55.6
2nd Quarter 2021
55.6
2nd Quarter 2021
55.6
3rd Quarter 2026
55.6
3rd Quarter 2026
55.6
2nd Quarter 2021
55.6
3rd Quarter 2020
55.6
Thailand (cont’d)
Golden Town
ChomThong-Wutthakat
Golden Town Sathorn
Golden Town
Wongsawang-Khae Rai
Golden Town
ChomThong-Ekachai
Golden Town
Ramintra-Wongwaen
Golden Town 2
Ramintra-Wongwaen
Freehold subdivided land in form of approximately
97,829 sqm situated on private road off Kanlapapruek
Road, within Bang Wa, Bang Khun Thian Sub-District,
Phasi Charoen, Chom Thong District, Bangkok
Metropolis.
Freehold subdivided land in form of approximately
63,143 sqm situated at Kanlapaphruek Road, within
Bang Wa Sub-District, Phasi Charoen District, Bangkok
Metropolis, for a proposed residential development
of 392 residential units total of approximately 29,608
sqm gross area for sale.
Freehold subdivided land in form of approximately
45,624 sqm situated at Nonthaburi 1 Road, within
Suan Yai Sub-District, Mueang District, Nonthaburi
Province, for a proposed residential development of
282 residential units total of approximately 23,362
sqm gross area for sale.
Freehold subdivided land in form of approximately
149,386 sqm situated on private road off Kanlapapruek
Road, within Bang Wa, Bang Khun Thian Sub-District,
Phasi Charoen, Chom Thong District, Bangkok
Metropolis.
Freehold subdivided land in form of approximately
72,866 sqm situated on public road off parallel road
Kanchanaphisek Road (Highways No. 9), within Ram
Inthra Sub-District, Khan Na Yao District, within Tha
Raeng Sub-District, Bang Khen District, Bangkok
Metropolis, for a proposed residential development
of 478 residential units total of approximately 36,694
sqm gross area for sale.
Freehold land of approximately 23,046 sqm situated
on parallel road off Kanchanaphisek Road (Highways
No. 9) around km. station 38+500 and on Soi
Kanchanaphisek 6/1 off Kanchanaphisek Road
(Highways No. 9) within Tha Raeng Sub-District, Bang
Khen District, Bangkok Metropolis.
Golden Town Petchkasem Freehold subdivided land in form of approximately
63,816 sqm situated at Soi Phetkasem 108 off
Phetkasem Road, within Nong Khang Phlu Sub-District,
Nong Khaem District, Bangkok Metropolis, for a
proposed residential development of 384 residential
units total of approximately 29,660 sqm gross area for
sale.
19_0111_FPL_FR2019_FS_v18.indd 394
11/12/19 5:43 PM
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Golden Town Bangkae
Golden Town 2 Bangkae
Golden Town
Srinakarin-Sukhumvit
Golden Town 3
Ladphrao-
Kasetnawamin
Golden Town 3 Rama 2
Golden Town 2 Rama 2
Freehold subdivided land in form of approximately
53,094 sqm situated at Soi Kanchanaphisek 5/1 (Soi
Moo Ban Suk San 6) off Kanchanaphisek Road, within
Lak Song Sub-District, Bang Khae District, Bangkok
Metropolis, for a proposed residential development
of 360 residential units total of approximately 25,887
sqm gross area for sale.
Freehold subdivided land in form of approximately
55,062 sqm situated at Soi Kanchanaphisek 5/1 (Soi
Moo Ban Suk San 6) off Kanchanaphisek Road, within
Lak Song Sub-District, Bang Khae District, Bangkok
Metropolis.
Freehold subdivided land in form of approximately
56,753 sqm situated at Soi Sap Phatthana off
Phraekkasa Road, within Phraekkasa Sub-District,
Mueang District, Samut Prakan Province, for a proposed
residential development of 405 residential units total
of approximately 30,627 sqm gross area for sale.
Freehold subdivided land in form of approximately
32,550 sqm situated on private road off Soi Nawamin
42 Yeak 27 (Soi Suwan Prasit) Nawamin Road, within
Khlong Kum Sub-District, Bueng Kum District, Bangkok
Metropolis, for a proposed residential development
of 211 residential units total of approximately 17,308
sqm gross area for sale.
Freehold subdivided land in form of approximately
85,225 sqm situated at Phan Tay Norasing - Jedsadwithi
Road off Rama 2 Road, within Phan Tay Norasing Sub-
District, Mueang District, Samut Sakhon Province, for
a proposed residential development of 212 residential
units total of approximately 29,970 sqm gross area for
sale.
Freehold subdivided land in form of approximately
40,658 sqm situated at Phan Tay Norasing - Jedsadwithi
Road off Rama 2 Road, within Phan Tay Norasing Sub-
District, Mueang District, Samut Sakhon Province, for
a proposed residential development of 302 residential
units total of approximately 22,742 sqm gross area for
sale.
Annual Report 2019 395
Estimated
Date of
Completion
Effective
Interest
%
1st Quarter 2020
55.6
3rd Quarter 2021
55.6
2nd Quarter 2020
55.6
1st Quarter 2020
55.6
1st Quarter 2022
55.6
2nd Quarter 2020
55.6
Golden Town
Chonburi-Angsila
Freehold subdivided land in form of approximately
32,000 sqm situated at Samet District, Muang Chonburi
District, Chonburi Province.
1st Quarter 2024
55.6
19_0111_FPL_FR2019_FS_v18.indd 395
11/12/19 5:43 PM
396 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Golden Town
Sriracha-Assumption
Freehold subdivided land in form of approximately
83,024 sqm situated at Kao Kilo Road, within Surasak
Sub-District, Sriracha District, Chonburi Province, for a
proposed residential development of 476 residential
units total of approximately 38,881 sqm gross area for
sale.
Estimated
Date of
Completion
Effective
Interest
%
3rd Quarter 2020
55.6
Golden Town Bangna Km.5 Freehold subdivided land in form of approximately
14,723 sqm situated at Buanakarin Road, within Bang
Kaeo Sub-District, Bang Phli District, Samut Prakan
Province.
1st Quarter 2024
55.6
Golden Town
Phaholyothin-
Saphanmai
Freehold subdivided land in form of approximately
82,276 sqm situated at Soi Phahon Yothin 54/1 off
Phahon Yothin Road within Sai Mai Sub-District, Sai
Mai District, Bangkok Metropolis, for a proposed
residential development of 495 residential units total
of approximately 36,602 sqm gross area for sale.
1st Quarter 2021
55.6
Golden Town
Chaengwattana-Muang
Thong
Freehold subdivided land in form of approximately
54,000 sqm situated at Tiwanon Road, within Ban Mai
Sub-District, Pak Kret District, Nonthaburi Province.
3rd Quarter 2021
55.6
Golden Town Chiang Rai
Golden Town
Petchkasem 81
Golden Town Sukhumvit-
Bearing Station
Freehold subdivided land in form of approximately
52,310 sqm situated at Phahon Yothin Road within Ban
Du Sub-District, Mueang District, Chiang Rai Province,
for a proposed residential development of 353
residential units total of approximately 24,742 sqm
gross area for sale.
Freehold subdivided land in form of approximately
54,036 sqm situated at Soi Phet Kasem 81 (Soi Ma
Charoen) Phet Kasem Road, within Nong Khang
Phlu Sub-District, Nong Khaem District, Bangkok
Metropolis, for a proposed residential development
of 314 residential units total of approximately 29,971
sqm gross area for sale.
Freehold subdivided land in form of approximately
38,858 sqm situated at Soi Thetsaban Samrong Tai
6, off Thang Rotfai Sai Kao Road, within Samrong Tai
Sub-District, Phra Pradaeng District, Samut Prakan
Province, for a proposed residential development of
282 residential units total of approximately 20,907
sqm gross area for sale.
1st Quarter 2021
55.6
1st Quarter 2022
55.6
3rd Quarter 2020
55.6
19_0111_FPL_FR2019_FS_v18.indd 396
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Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Golden Town WestGate-
Rattanathibet Bangphlu
Station
Golden Town 3 Bangna-
Suanluang
Freehold subdivided land in form of approximately
Iam Road
65,981 sqm situated at Chan Thong
within Bang Rak Phatthana Sub-District, Bang Bua
Thong District, Nonthaburi Province, for a proposed
residential development of 290 residential units total
of approximately 20,891 sqm gross area for sale.
Freehold subdivided land in form of approximately
56,689 sqm situated on parallel road off Kanchanaphisek
Road (Highway No. 9 - Eastern Outer Ring Road)
within Dokmai Sub-District, Prawet District, Bangkok
Metropolis, for a proposed residential development
of 379 residential units total of approximately 27,919
sqm gross area for sale.
Annual Report 2019 397
Estimated
Date of
Completion
Effective
Interest
%
1st Quarter 2022
55.6
3rd Quarter 2020
55.6
Golden Town 2 Chiang
Rai-BigC Airport
Freehold subdivided land in form of approximately
130,680 sqm situated at Sanam Bin Road, within Ban
Du Sub-District, Mueang District, Chiang Rai Province.
1st Quarter 2024
55.6
Golden Town
Ngamwongwan-Khae
Rai
Golden Town Lamlukka-
Khukhot Station
Golden Town Rangsit-
Klong 3
Golden Town 2 Rangsit-
Klong 3
Freehold subdivided land in form of approximately
47,787 sqm situated at Soi Tiwanon 45, Tiwanon Road,
within Tha Sai Sub-District, Mueang District, Nonthaburi
Province, for a proposed residential development of
321 residential units total of approximately 23,854
sqm gross area for sale.
Freehold subdivided land in form of approximately
75,221 sqm situated at Soi Lam Luk Ka 19, Lam
Luk Ka Road within Khu Khot Sub-District, Lam Luk
Ka District, Pathum Thani Province, for a proposed
residential development of 378 residential units total
of approximately 27,230 sqm gross area for sale.
Freehold subdivided land in form of approximately
73,840 sqm situated at Liap Khlong Sam Road, within
Khlong Sam Sub-District, Khlong Luang District, Pathum
Thani Province, for a proposed residential development
of 495 residential units total of approximately 35,408
sqm gross area for sale.
Freehold subdivided land in form of approximately
70,144 sqm situated at Liap Khlong Sam Road, within
Khlong Sam Sub-District, Khlong Luang District,
Pathum Thani Province.
1st Quarter 2021
55.6
1st Quarter 2023
55.6
1st Quarter 2023
55.6
1st Quarter 2026
55.6
19_0111_FPL_FR2019_FS_v18.indd 397
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398 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Golden Town
Ngamwongwan-
Ministry of Public Health
Golden Town Ayutthaya
Golden Town Pattaya Tai
Golden Town
Chachoengsao
Golden Town
Phaholyothin-Rangsit
Freehold subdivided land in form of approximately
32,968 sqm situated at Soi Ngamwongwan 6 Yaek
21 within Bang Khen Sub-District, Mueang District,
Nonthaburi Province, for a proposed residential
development of 139 residential units total of
approximately 10,402 sqm gross area for sale.
Freehold subdivided land in form of approximately
68,464 sqm situated on parallel road off Asia Road
(Highway No. 32) within Ban Krot Sub-District, Bang
Pa-In District, Phra Nakhon Si Ayutthaya Province, for
a proposed residential development of 455 residential
units total of approximately 33,535 sqm gross area for
sale.
Freehold subdivided land in form of approximately
58,192 sqm situated at Soi Khao Ta Lo 7 off Khao
Ta Lo Road within Nong Prue Sub-District, Bang
Lamung District, Chon Buri Province, for a proposed
residential development of 249 residential units total
of approximately 19,776 sqm gross area for sale.
Freehold subdivided land in form of approximately
71,415 sqm situated at Watphanitaram-Watbangphra
Road (Highway No. 3315) around km. station 0+650
off Siri Sothon Road (Highways No. 314) within Bang
Krod Sub-District, Ban Pho District, Chachoengsao
Province, for a proposed residential development of
496 residential units total of approximately 35,832
sqm gross area for sale.
Freehold subdivided land in form of approximately
77,455 sqm situated at Khlong Nueng, Klong Luang
District, Pathum Thani Province, for a proposed
residential development of 398 residential units total
of approximately 28,836 sqm gross area for sale.
Estimated
Date of
Completion
Effective
Interest
%
2nd Quarter 2021
55.6
2nd Quarter 2021
55.6
2nd Quarter 2021
55.6
2nd Quarter 2022
55.6
1st Quarter 2023
55.6
Golden Town 2
Phaholyothin-Rangsit
Freehold subdivided land in form of approximately
23,698 sqm situated at Khlong Nueng, Klong Luang
District, Pathum Thani Province.
1st Quarter 2026
55.6
Golden Town Petchkasem-
Phutthamonthon Sai 3
Freehold subdivided land in form of approximately
62,047 sqm situated at Phuttha Monthon Sai 3
Road within Nong Khang Phlu Sub-District, Nong
Khaem District, Bangkok Metropolis, for a proposed
residential development of 291 residential units total
of approximately 20,694 sqm gross area for sale.
1st Quarter 2021
55.6
19_0111_FPL_FR2019_FS_v18.indd 398
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Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Thailand (cont’d)
Golden Town
Rattanathibet-
Ratchapruek
Golden Town 2
Rattanathibet-
Ratchapruek
Golden Town
Rattanathibet-
Ratchapruek
Golden Town 4 Rama 2
Golden Town
Charoenmuang-
Superhighway
Golden Town
Chalermprakiat-
Suanluang
Golden Town Tiwanon-
Rangsit
Golden Town Chiang
Mai-Ruamchok
Freehold subdivided land in form of approximately
33,375 sqm situated at Bang Bua Thong District,
Nonthaburi Province.
Freehold subdivided land in form of approximately
42,733 sqm situated at Bang Bua Thong District,
Nonthaburi Province.
Freehold subdivided land in form of approximately
55,687 sqm situated at Bang Bua Thong District,
Nonthaburi Province.
Freehold subdivided land in form of approximately
100,810 sqm situated at Phan Tay Norasing -
Jedsadwithi Road off Rama 2 Road, within Phan Tay
Norasing Sub-District, Mueang District, Samut Sakhon
Province.
Freehold subdivided land in form of approximately
27,730 sqm situated at Soi Bun Raksa off Chiang Mai -
Lampang Road (Highway No. 11) within Tha Sala Sub-
District, Mueang District, Chiang Mai Province, for a
proposed residential development of 131 residential
units total of approximately 10,000 sqm gross area for
sale.
Freehold subdivided land in form of approximately
35,862 sqm situated at Soi Chaloem Phrakiat Ratchakan
Thi 9 Yeak 4 off Chaloem Phrakiat Ratchakan Thi 9 Road
within Dokmai Sub-District, Prawet District, Bangkok
Metropolis, for a proposed residential development
of 158 residential units total of approximately 11,612
sqm gross area for sale.
Freehold subdivided land in form of approximately
76,515 sqm situated at Liap Khlong Prapa Road within
Ban Mai Sub-District, Mueang District, Pathum Thani
Province, for a proposed residential development of
361 residential units total of approximately 26,071
sqm gross area for sale.
Freehold subdivided land in form of approximately
60,026 sqm situated at Somphot Chiangmai 700
Pi Road (The Middle Ring Road) within Fa Ham
Sub-District, Mueang District, Chiang Mai Province, for
a proposed residential development of 398 residential
units total of approximately 8,490 sqm gross area for
sale.
Annual Report 2019 399
Estimated
Date of
Completion
Effective
Interest
%
2nd Quarter 2024
55.6
3rd Quarter 2026
55.6
4th Quarter 2023
55.6
1st Quarter 2026
55.6
3rd Quarter 2021
55.6
3rd Quarter 2020
55.6
3rd Quarter 2022
55.6
1st Quarter 2022
55.6
19_0111_FPL_FR2019_FS_v18.indd 399
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400 Frasers Property Limited
Particulars of
Group Properties
AS AT 30 SEPTEMBER 2019
DEVELOPMENT PROPERTIES HELD FOR SALE (CONT’D)
Estimated
Date of
Completion
Effective
Interest
%
Thailand (cont’d)
Golden Town
Chalermprakiat 30
Freehold subdivided land in form of approximately
11,040 sqm situated at Dokmai Sub-district, Phra
Khanong District, Bangkok.
1st Quarter 2026
55.6
Golden Town 4 Suksawat-
Phuttha Bucha
Freehold subdivided land in form of approximately
77,114 sqm situated at Soi Suk Sawat 30 Yeak 10 off
Suk Sawat Road within Rat Burana Sub-District, Rat
Burana District, Bangkok Metropolis.
1st Quarter 2022
55.6
Golden Town Rama
9-Krungthepkreetha
Freehold subdivided land in form of approximately
56,000 sqm situated at Rama 9-Krungthepkreetha,
Bangkok Metropolis.
1st Quarter 2026
55.6
19_0111_FPL_FR2019_FS_v18.indd 400
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Interested
Person Transactions
Annual Report 2019 401
Particulars of interested person transactions (“IPTs”) for the period from 1 October 2018 to 30 September 2019 as required
under Rule 907 of the SGX Listing Manual are set out below.
Aggregate value of all
IPTs during the financial
year under review
(excluding transactions
less than $100,000 and
transactions conducted
under shareholders'
mandate pursuant
to Rule 920)
$’000
Aggregate value of all
IPTs conducted during
the financial year
under review under
shareholders' mandate
pursuant to Rule 920
(excluding transactions
less than $100,000)
$’000
–
372
–
147,223
–
6,991
6,954
1,913
–
119
Name of interested person
TCC Group of Companies(1)
– Purchase of products and obtaining of services
– Lease of retail/office/hotel space
– Extension of loans and interest charged
– Acquisition of interests in a joint venture and an associate
Frasers Hospitality Trust
– Provision of services
Note:
(1)
This refers to the companies and entities in the TCC Group which are controlled by Mr Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi.
MATERIAL CONTRACTS (RULE 1207 (8) OF THE SGX LISTING MANUAL)
There were no material contracts entered into by the Company or any of its subsidiaries involving the interests of any
Director or controlling shareholder of the Company during the financial year under review, save as disclosed above and
in this Annual Report.
19_0111_FPL_FR2019_FS_v18.indd 401
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402 Frasers Property Limited
Shareholding
Statistics
AS AT 29 NOVEMBER 2019
DISTRIBUTION OF SHAREHOLDERS BY SIZE OF SHAREHOLDINGS
Size of Holding
No. of Shareholders
%
No. of Shares
%
– 99
– 1,000
1
100
1,001 – 10,000
10,001 – 1,000,000
1,000,001 and above
Total
79
593
5,120
2,457
25
8,274
0.95
7.17
61.88
29.70
0.30
100.00
2,299
402,777
25,427,821
138,050,788
2,755,604,234
2,919,487,919
0.00
0.01
0.87
4.73
94.39
100.00
TWENTY LARGEST SHAREHOLDERS
(AS SHOWN IN THE REGISTER OF MEMBERS AND DEPOSITORY REGISTER)
No.
Shareholder's Name
No. of Shares Held
%*
DBS Nominees Pte Ltd
InterBev Investment Limited
DB Nominees (Singapore) Pte Ltd
United Overseas Bank Nominees Pte Ltd
Citibank Nominees Singapore Pte Ltd
DBS Vickers Securities (Singapore) Pte Ltd
Raffles Nominees (Pte) Ltd
UOB Kay Hian Pte Ltd
HSBC (Singapore) Nominees Pte Ltd
1
2
3
4
5
6
7
8
9
10 DBSN Services Pte Ltd
11
12
13 Mellford Pte Ltd
14
15
16
17 OCBC Nominees Singapore Pte Ltd
18 OCBC Securities Private Ltd
19
20
Total
Chee Swee Cheng & Co Pte Ltd
Choe Peng Sum
Lim Ee Seng
Phay Thong Huat Pte Ltd
Phillip Securities Pte Ltd
The Titular Roman Catholic Archbishop of Kuala Lumpur
Choo Meileen
884,643,192
824,847,644
468,726,992
392,535,960
96,403,597
22,537,310
12,937,491
12,153,025
6,270,580
6,133,612
4,339,004
3,618,000
2,277,100
2,047,923
2,013,440
1,812,130
1,732,820
1,726,716
1,693,220
1,375,809
2,749,825,565
30.30
28.25
16.06
13.45
3.30
0.77
0.44
0.42
0.21
0.21
0.15
0.12
0.08
0.07
0.07
0.06
0.06
0.06
0.06
0.05
94.19
Note
*
Percentage is based on 2,919,487,919 shares as at 29 November 2019. There are no Treasury Shares as at 29 November 2019.
ShareholdingXStatistics_v5.indd 402
11/12/19 5:48 PM
Shareholding
Statistics
AS AT 29 NOVEMBER 2019
Annual Report 2019 403
SUBSTANTIAL SHAREHOLDERS (AS SHOWN IN THE REGISTER OF SUBSTANTIAL SHAREHOLDERS)
TCC Assets Limited
InterBev Investment Limited
International Beverage Holdings Limited (1)
Thai Beverage Public Company Limited (2)
Siriwana Company Limited (3)
MM Group Limited (4)
Maxtop Management Corp. (4)
Risen Mark Enterprise Ltd. (4)
Golden Capital (Singapore) Limited (4)
Charoen Sirivadhanabhakdi (5)
Khunying Wanna Sirivadhanabhakdi (5)
Direct Interest
Deemed Interest
No. of Shares
%*
No. of Shares
%*
1,716,160,124
824,847,644
58.78
28.25
824,847,644
824,847,644
824,847,644
824,847,644
824,847,644
824,847,644
824,847,644
2,541,007,768
2,541,007,768
28.25
28.25
28.25
28.25
28.25
28.25
28.25
87.04
87.04
To the best of the Company's knowledge and based on records of the Company as at 29 November 2019, approximately
13%* of the issued shares of the Company are held in the hands of the public and this complies with Rule 723 of the
Listing Manual.
Notes:
*
(1)
(2)
(3)
Percentage is based on 2,919,487,919 shares as at 29 November 2019. There are no Treasury Shares as at 29 November 2019.
International Beverage Holdings Limited (“IBHL”) holds a 100% direct interest in InterBev Investment Limited (“IBIL”) and is therefore deemed to be interested
in all of the shares of Frasers Property Limited (“FPL”) in which IBIL has an interest.
Thai Beverage Public Company Limited (“ThaiBev”) holds a 100% direct interest in IBHL, which in turn holds a 100% direct interest in IBIL. ThaiBev is therefore
deemed to be interested in all of the shares of FPL in which IBIL has an interest.
Siriwana Company Limited (“Siriwana”) holds an approximate 45.27% direct interest in ThaiBev;
–
–
ThaiBev holds a 100% direct interest in IBHL; and
IBHL holds a 100% direct interest in IBIL.
Siriwana is therefore deemed to be interested in all of the shares of FPL in which IBIL has an interest.
(4) MM Group Limited (“MM Group”) holds a 100% direct interest in each of Maxtop Management Corp. (“Maxtop”), Risen Mark Enterprise Ltd. (“RM”) and Golden
Capital (Singapore) Limited (“GC”);
– Maxtop holds a 17.23% direct interest in ThaiBev;
–
RM holds a 3.32% direct interest in ThaiBev;
– GC holds a 0.06% direct interest in ThaiBev.
–
–
ThaiBev holds a 100% direct interest in IBHL; and
IBHL holds a 100% direct interest in IBIL.
MM Group is therefore deemed to be interested in all of the shares of FPL in which IBIL has an interest.
(5)
Each of Charoen Sirivadhanabhakdi and his spouse, Khunying Wanna Sirivadhanabhakdi, owns 50% of the issued share capital of TCC Assets Limited ("TCCA"),
and is therefore deemed to be interested in all of the shares of FPL in which TCCA has an interest.
Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi also jointly hold:
–
–
a 51% direct interest in Siriwana, which in turn holds an approximate 45.27% direct interest in ThaiBev; and
a 100% direct interest in MM Group. MM Group holds a 100% direct interest in each of Maxtop, RM and GC. Maxtop holds a 17.23% direct interest in
ThaiBev; RM holds a 3.32% direct interest in ThaiBev; and GC holds a 0.06% direct interest in ThaiBev.
ThaiBev holds a 100% direct interest in IBHL, which in turn holds a 100% direct interest in IBIL. Each of Charoen Sirivadhanabhakdi and Khunying Wanna
Sirivadhanabhakdi is therefore deemed to be interested in all of the shares of FPL in which IBIL has an interest.
ShareholdingXStatistics_v5.indd 403
11/12/19 5:48 PM
404 Frasers Property Limited
Notice of
Annual General Meeting
FRASERS PROPERTY LIMITED
(Incorporated in Singapore)
(Company Registration No. 196300440G)
NOTICE OF ANNUAL GENERAL MEETING
Date
:
Place :
Wednesday, 29 January 2020
Grand Ballroom, Level 2, InterContinental Singapore, 80 Middle Road, Singapore 188966
NOTICE IS HEREBY GIVEN that the 56th Annual General Meeting of FRASERS PROPERTY LIMITED (the “Company”) will
be held at the Grand Ballroom, Level 2, InterContinental Singapore, 80 Middle Road, Singapore 188966 on Wednesday,
29 January 2020 at 2.00 p.m. for the following purposes:
ROUTINE BUSINESS
(1)
(2)
(3)
To receive and adopt the Directors’ statement and audited financial statements for the year ended 30 September
2019 and the auditors’ report thereon.
To approve a final tax-exempt (one-tier) dividend of 3.6 cents per share in respect of the year ended 30 September
2019.
To pass the following resolutions on the recommendation of the Nominating Committee and endorsement of the
Board of Directors in respect of appointment of Directors (see note (a) of the explanatory notes):
(a)
“That Mr Chan Heng Wing, who will retire by rotation pursuant to article 94 of the Constitution of the
Company and who, being eligible, has offered himself for re-election, be and is hereby re-appointed as a
Director of the Company.”
Subject to his re-appointment, Mr Chan, who is considered an independent Director, will be re-appointed as
a member of the Risk Management Committee, a member of the Nominating Committee and a member of
the Remuneration Committee.
(b)
(c)
“That Mr Tan Pheng Hock, who will retire by rotation pursuant to article 94 of the Constitution of the
Company and who, being eligible, has offered himself for re-election, be and is hereby re-appointed as a
Director of the Company.”
“That Mr Wee Joo Yeow, who will retire by rotation pursuant to article 94 of the Constitution of the Company
and who, being eligible, has offered himself for re-election, be and is hereby re-appointed as a Director of
the Company.”
Subject to his re-appointment, Mr Wee will be re-appointed as a member of the Board Executive Committee
and a member of the Audit Committee.
(d)
“That Mr Sithichai Chaikriangkrai, who will retire by rotation pursuant to article 94 of the Constitution of
the Company and who, being eligible, has offered himself for re-election, be and is hereby re-appointed as a
Director of the Company.”
Subject to his re-appointment, Mr Sithichai will be re-appointed as a member of the Board Executive
Committee, a member of the Audit Committee and a member of the Risk Management Committee.
(4)
To approve Directors’ fees of up to S$2,000,000 payable by the Company for the year ending 30 September 2020
(last year: up to S$2,000,000).
NoticeXofXAGM_v3.indd 404
11/12/19 5:50 PM
Notice of
Annual General Meeting
Annual Report 2019 405
(5)
To re-appoint KPMG LLP as the auditors of the Company and to authorise the Directors to fix their remuneration.
SPECIAL BUSINESS
To consider and, if thought fit, to pass, with or without modifications, the following resolutions, which will be proposed
as Ordinary Resolutions:
(6)
“That authority be and is hereby given to the Directors of the Company to:
(a)
(i)
issue shares of the Company (“shares”) whether by way of rights, bonus or otherwise; and/or
(ii)
make or grant offers, agreements or options (collectively, “Instruments”) that might or would require
shares to be issued, including but not limited to the creation and issue of (as well as adjustments to)
warrants, debentures or other instruments convertible into shares,
at any time and upon such terms and conditions and for such purposes and to such persons as the Directors
may in their absolute discretion deem fit; and
(b)
(notwithstanding the authority conferred by this Resolution may have ceased to be in force) issue shares in
pursuance of any Instrument made or granted by the Directors while this Resolution was in force,
provided that:
(1)
(2)
(3)
(4)
the aggregate number of shares to be issued pursuant to this Resolution (including shares to be issued in
pursuance of Instruments made or granted pursuant to this Resolution) does not exceed 50% of the total
number of issued shares (excluding treasury shares and subsidiary holdings) (as calculated in accordance
with sub-paragraph (2) below), of which the aggregate number of shares to be issued other than on a pro
rata basis to shareholders of the Company (including shares to be issued in pursuance of Instruments made
or granted pursuant to this Resolution) shall not exceed 20% of the total number of issued shares (excluding
treasury shares and subsidiary holdings) (as calculated in accordance with sub-paragraph (2) below);
(subject to such manner of calculation as may be prescribed by the Singapore Exchange Securities Trading
Limited (the “SGX-ST”)) for the purpose of determining the aggregate number of shares that may be issued
under sub-paragraph (1) above, the percentage of issued shares shall be based on the total number of
issued shares (excluding treasury shares and subsidiary holdings) at the time this Resolution is passed, after
adjusting for:
(i)
new shares arising from the conversion or exercise of any convertible securities or share options or
vesting of share awards which are outstanding or subsisting at the time this Resolution is passed; and
(ii)
any subsequent bonus issue, consolidation or subdivision of shares,
and, in sub-paragraph (1) above and this sub-paragraph (2), “subsidiary holdings” has the meaning given to
it in the Listing Manual of the SGX-ST;
in exercising the authority conferred by this Resolution, the Company shall comply with the provisions of
the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the
SGX-ST) and the Constitution for the time being of the Company; and
(unless revoked or varied by the Company in general meeting) the authority conferred by this Resolution
shall continue in force until the conclusion of the next Annual General Meeting of the Company or the date
by which the next Annual General Meeting of the Company is required by law to be held, whichever is the
earlier.”
NoticeXofXAGM_v3.indd 405
11/12/19 5:50 PM
406 Frasers Property Limited
Notice of
Annual General Meeting
(7)
“That authority be and is hereby given to the Directors of the Company to:
(a)
(b)
grant awards in accordance with the provisions of the FPL Restricted Share Plan (the “Restricted Share
Plan”) and/or the FPL Performance Share Plan (the “Performance Share Plan”); and
allot and issue such number of ordinary shares of the Company as may be required to be delivered pursuant
to the vesting of awards under the Restricted Share Plan and/or the Performance Share Plan,
provided that the aggregate number of new ordinary shares allotted and issued and/or to be allotted and issued,
when aggregated with existing ordinary shares (including shares held in treasury) delivered and/or to be delivered,
pursuant to the Restricted Share Plan and the Performance Share Plan, shall not exceed 10% of the total number
of issued ordinary shares of the Company (excluding treasury shares and subsidiary holdings) from time to time,
and in this Resolution, “subsidiary holdings” has the meaning given to it in the Listing Manual of the Singapore
Exchange Securities Trading Limited.”
(8)
“That:
(a)
(b)
(c)
(9)
“That:
(a)
approval be and is hereby given, for the purposes of Chapter 9 of the Listing Manual (“Chapter 9”) of the
Singapore Exchange Securities Trading Limited, for the Company, its subsidiaries and associated companies
that are considered to be “entities at risk” under Chapter 9, or any of them, to enter into any of the transactions
falling within the types of Mandated Transactions described in Appendix 1 to the Letter to Shareholders
dated 23 December 2019 (the “Letter”), with any party who is of the class of Mandated Interested Persons
described in Appendix 1 to the Letter, provided that such transactions are made on normal commercial
terms and in accordance with the review procedures for such Mandated Transactions (the “IPT Mandate”);
the IPT Mandate shall, unless revoked or varied by the Company in general meeting, continue in force until
the conclusion of the next Annual General Meeting of the Company; and
the Directors of the Company and/or any of them be and are hereby authorised to complete and do all such
acts and things (including executing all such documents as may be required) as they and/or he may consider
expedient or necessary or in the interests of the Company to give effect to the IPT Mandate and/or this
Resolution.”
for the purposes of Sections 76C and 76E of the Companies Act, Chapter 50 of Singapore (the “Companies
Act”), the exercise by the Directors of the Company of all the powers of the Company to purchase or
otherwise acquire issued ordinary shares of the Company (“Shares”) not exceeding in aggregate the
Maximum Percentage (as hereafter defined), at such price or prices as may be determined by the Directors
from time to time up to the Maximum Price (as hereafter defined), whether by way of:
(i)
(ii)
market purchase(s) on the Singapore Exchange Securities Trading Limited (the “SGX-ST”) transacted
through the trading system of the SGX-ST and/or any other securities exchange on which the Shares
may for the time being be listed and quoted (“Other Exchange”); and/or
off-market purchase(s) (if effected otherwise than on the SGX-ST or, as the case may be, Other
Exchange) in accordance with any equal access scheme(s) as may be determined or formulated by
the Directors as they consider fit, which scheme(s) shall satisfy all the conditions prescribed by the
Companies Act,
and otherwise in accordance with all other laws and regulations and rules of the SGX-ST or, as the case
may be, Other Exchange as may for the time being be applicable, be and is hereby authorised and approved
generally and unconditionally (the “Share Purchase Mandate”);
NoticeXofXAGM_v3.indd 406
11/12/19 5:50 PM
Notice of
Annual General Meeting
Annual Report 2019 407
(b)
unless varied or revoked by the Company in general meeting, the authority conferred on the Directors of the
Company pursuant to the Share Purchase Mandate may be exercised by the Directors at any time and from
time to time during the period commencing from the date of the passing of this Resolution and expiring on
the earliest of:
(i)
the date on which the next Annual General Meeting of the Company is held;
(ii)
(iii)
the date by which the next Annual General Meeting of the Company is required by law to be held;
and
the date on which purchases and acquisitions of Shares pursuant to the Share Purchase Mandate are
carried out to the full extent mandated;
(c)
in this Resolution:
“Average Closing Price” means the average of the closing market prices of a Share over the five consecutive
market days on which the Shares are transacted on the SGX-ST or, as the case may be, Other Exchange,
immediately preceding the date of the market purchase by the Company or, as the case may be, the date
of the making of the offer pursuant to the off-market purchase, and deemed to be adjusted, in accordance
with the listing rules of the SGX-ST, for any corporate action that occurs after the relevant five-day period;
“date of the making of the offer” means the date on which the Company makes an offer for the purchase or
acquisition of Shares from holders of Shares, stating therein the relevant terms of the equal access scheme
for effecting the off-market purchase;
“Maximum Percentage” means that number of issued Shares representing 2% of the issued Shares as at the
date of the passing of this Resolution (excluding treasury shares and subsidiary holdings (as defined in the
Listing Manual of the SGX-ST)); and
“Maximum Price” in relation to a Share to be purchased or acquired, means the purchase price (excluding
related brokerage, commission, applicable goods and services tax, stamp duties, clearance fees and other
related expenses) which shall not exceed 105% of the Average Closing Price of the Shares; and
(d)
the Directors of the Company and/or any of them be and are hereby authorised to complete and do all such
acts and things (including executing all such documents as may be required) as they and/or he may consider
expedient or necessary or in the interests of the Company to give effect to the transactions contemplated
and/or authorised by this Resolution.”
By Order of the Board
Catherine Yeo
Company Secretary
Singapore, 23 December 2019
NoticeXofXAGM_v3.indd 407
11/12/19 5:50 PM
408 Frasers Property Limited
Notice of
Annual General Meeting
NOTES:
1.
(a)
A member of the Company who is not a relevant intermediary is entitled to appoint not more than two
proxies to attend, speak and vote at the Annual General Meeting. Where such member’s form of proxy
appoints more than one proxy, the proportion of his shareholding concerned to be represented by each
proxy shall be specified in the form of proxy.
(b)
A member of the Company who is a relevant intermediary is entitled to appoint more than two proxies to
attend, speak and vote at the Annual General Meeting, but each proxy must be appointed to exercise the
rights attached to a different share or shares held by such member. Where such member’s form of proxy
appoints more than two proxies, the number and class of shares in relation to which each proxy has been
appointed shall be specified in the form of proxy.
“Relevant intermediary” has the meaning ascribed to it in Section 181 of the Companies Act, Chapter 50 of
Singapore.
2.
3.
A proxy need not be a member of the Company.
The instrument appointing a proxy or proxies (a form is enclosed) must be deposited at the Share Registration
Office of the Company at Tricor Barbinder Share Registration Services (A division of Tricor Singapore Pte. Ltd.), 80
Robinson Road #11-02, Singapore 068898 not less than 72 hours before the time appointed for holding the Annual
General Meeting.
EXPLANATORY NOTES:
(a)
(b)
(c)
(d)
Detailed information on the Directors who are proposed to be re-appointed can be found under “Board of Directors”,
“Corporate Governance” and “Additional Information on Directors Seeking Re-Appointment” in the Company’s
Annual Report 2019.
The Ordinary Resolution proposed in item (6) above is to authorise the Directors of the Company from the date of the
Annual General Meeting until the next Annual General Meeting to issue shares and/or make or grant instruments
that might require shares to be issued, and to issue shares in pursuance of such instruments, up to a limit of 50% of
the total number of issued shares of the Company (excluding treasury shares and subsidiary holdings), with a sub-
limit of 20% for issues other than on a pro rata basis, calculated as described in the Resolution. As at 2 December
2019 (the “Latest Practicable Date”), the Company had no treasury shares and no subsidiary holdings.
The Ordinary Resolution proposed in item (7) above is to authorise the Directors of the Company to offer and grant
awards and to issue ordinary shares of the Company pursuant to the FPL Restricted Share Plan (the “Restricted
Share Plan”) and the FPL Performance Share Plan (the “Performance Share Plan”), provided that the aggregate
number of new ordinary shares allotted and issued and/or to be allotted and issued, when aggregated with existing
ordinary shares (including shares held in treasury) delivered and/or to be delivered, pursuant to the Restricted
Share Plan and the Performance Share Plan, shall not exceed 10% of the total number of issued ordinary shares
of the Company (excluding treasury shares and subsidiary holdings), over the 10-year duration of the Restricted
Share Plan and the Performance Share Plan.
The Ordinary Resolution proposed in item (8) above is to renew the mandate to enable the Company, its subsidiaries
and associated companies that are considered to be “entities at risk” under Chapter 9 of the Listing Manual, or
any of them, to enter into certain interested person transactions with specified classes of interested persons, as
described in Appendix 1 to the Letter to Shareholders dated 23 December 2019 (the “Letter”). Please refer to the
Letter for more details.
NoticeXofXAGM_v3.indd 408
11/12/19 5:50 PM
Notice of
Annual General Meeting
Annual Report 2019 409
(e)
The Ordinary Resolution proposed in item (9) above is to renew the mandate to allow the Company to purchase or
otherwise acquire its issued ordinary shares, on the terms and subject to the conditions set out in the Resolution.
The Company intends to use internal resources or external borrowings or a combination of both to finance the
purchase or acquisition of its ordinary shares. The amount of financing required for the Company to purchase or
acquire its ordinary shares, and the impact on the Company’s financial position cannot be ascertained as at the
date of this Notice as these will depend on the number of ordinary shares purchased or acquired, whether the
purchase or acquisition is made out of capital or profits, the price at which such ordinary shares were purchased or
acquired and whether the ordinary shares purchased or acquired are held in treasury or cancelled.
Purely for illustrative purposes only, the financial effects of an assumed purchase or acquisition of 58,389,758
ordinary shares on the Latest Practicable Date, representing 2% of the issued ordinary shares as at that date, at the
maximum price of S$1.80 for one ordinary share (being the price equivalent to 5% above the average of the closing
market prices of the ordinary shares for the five consecutive market days on which the ordinary shares were traded
on the Singapore Exchange Securities Trading Limited immediately preceding the Latest Practicable Date), in the
case of a market purchase and an off-market purchase respectively, based on the audited financial statements of
the Company and its subsidiaries for the financial year ended 30 September 2019 and certain assumptions, are set
out in paragraph 3.7 of the Letter.
Please refer to the Letter for more details.
PERSONAL DATA PRIVACY:
By submitting an instrument appointing a proxy(ies) and/or representative(s) to attend, speak and vote at the Annual
General Meeting (“AGM”) and/or any adjournment thereof, a member of the Company (i) consents to the collection, use
and disclosure of the member’s personal data by the Company (or its agents or service providers) for the purpose of the
processing, administration and analysis by the Company (or its agents or service providers) of proxies and representatives
appointed for the AGM (including any adjournment thereof) and the preparation and compilation of the attendance lists,
minutes and other documents relating to the AGM (including any adjournment thereof), and in order for the Company
(or its agents or service providers) to comply with any applicable laws, listing rules, take-over rules, regulations and/or
guidelines (collectively, the “Purposes”), (ii) warrants that where the member discloses the personal data of the member’s
proxy(ies) and/or representative(s) to the Company (or its agents or service providers), the member has obtained the prior
consent of such proxy(ies) and/or representative(s) for the collection, use and disclosure by the Company (or its agents
or service providers) of the personal data of such proxy(ies) and/or representative(s) for the Purposes, and (iii) agrees that
the member will indemnify the Company in respect of any penalties, liabilities, claims, demands, losses and damages as a
result of the member’s breach of warranty.
NoticeXofXAGM_v3.indd 409
11/12/19 5:50 PM
410 Frasers Property Limited
Additional Information
on Directors Seeking Re-Appointment
The following additional information on Mr Chan Heng Wing, Mr Tan Pheng Hock, Mr Wee Joo Yeow and Mr Sithichai
Chaikriangkrai, all of whom are seeking re-appointment as Directors at the 56th Annual General Meeting, is to be read in
conjunction with their respective biographies on pages 12 to 18.
Mr Chan Heng Wing
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Non-Executive and
Independent Director
The Board's
comments on this
re-appointment
(including rationale,
selection criteria,
and the search and
nomination process)
Working experience
and occupation(s)
during the past 10
years
After reviewing the
recommendation
of the Nominating
Committee and Mr
Chan’s qualifications
and experience (as set
out below and in his
biography on page 14),
the Board has confirmed
Mr Chan’s independence
and approved Mr
Chan’s re-election as
a Non-Executive and
Independent Director.
The Board is satisfied
that Mr Chan will
continue to contribute
relevant knowledge,
skills and experience
to the Board. Mr Chan
will, upon re-election,
continue to serve
as a member of the
Risk Management
Committee, the
Nominating Committee
and the Remuneration
Committee.
– Mar 2008 to Jul 2010:
Chief Representative
of Temasek
International in China
– Jul 2010 to Oct 2011:
Managing Director,
International
Relations, Temasek
Holdings
After reviewing the
recommendation
of the Nominating
Committee and Mr
Tan’s qualifications
and experience (as set
out below and in his
biography on page 15),
the Board has confirmed
Mr Tan’s independence
and approved Mr
Tan’s re-election as
a Non-Executive and
Independent Director.
The Board is satisfied
that Mr Tan will continue
to contribute relevant
knowledge, skills and
experience to the Board.
After reviewing the
recommendation
of the Nominating
Committee and Mr
Wee’s qualifications
and experience (as set
out below and in his
biography on page 16),
the Board has confirmed
Mr Wee’s independence
and approved Mr
Wee’s re-election as
a Non-Executive and
Independent Director.
The Board is satisfied
that Mr Wee will
continue to contribute
relevant knowledge,
skills and experience
to the Board. Mr Wee
will, upon re-election,
continue to serve as a
member of the Board
Executive Committee
and the Audit
Committee.
Mr Sithichai
Chaikriangkrai
Non-Executive and
Non-Independent
Director
After reviewing the
recommendation
of the Nominating
Committee and Mr
Sithichai’s qualifications
and experience (as set
out below and in his
biography on page 17),
the Board has approved
Mr Sithichai’s re-election
as a Non-Executive
and Non-Independent
Director. The Board
is satisfied that Mr
Sithichai will continue
to contribute relevant
knowledge, skills and
experience to the Board.
Mr Sithichai will, upon
re-election, continue
to serve as a member
of the Board Executive
Committee, the Audit
Committee and the
Risk Management
Committee.
– Feb 2002 to Sep
2016: President
& CEO, Singapore
Technologies
Engineering Ltd
– Jan 2002 to Jun 2013:
Managing Director
and Head, Corporate
Banking Singapore,
United Overseas Bank
Limited
– Jun 2003 to May
2010: Director and
Senior Vice President,
Group CFO, Thai
Beverage Public
Company Limited
– May 2010 to Oct
2016: Director and
Executive Vice
President, Group
Finance, Thai
Beverage Public
Company Limited
– Oct 2016 to date:
Director and Senior
Executive Vice
President, Group CFO,
Thai Beverage Public
Company Limited
Shareholding
interest in FPL and its
subsidiaries
Nil
Nil
Nil
Nil
AdditionalXInfoXonXDirectors_v7.indd 410
11/12/19 5:52 PM
Additional Information
on Directors Seeking Re-Appointment
Mr Chan Heng Wing
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Nil
Yes
Conflict of interest
(including any
competing business)
Undertaking (in the
format set out in
Appendix 7.7) under
Rule 720(1) has been
submitted to FPL
Nil
Yes
Nil
Yes
Annual Report 2019 411
Mr Sithichai
Chaikriangkrai
Non-Executive and
Non-Independent
Director
Nil
Yes
Other Principal Commitments (as defined in the Code of Corporate Governance 2018) including Directorships
Present Directorships
(as at 2 Dec 2019)
Other listed companies
Other listed companies
Other listed companies
Other listed companies
– Banyan Tree Holdings
Nil
– PACC Offshore
– Asset World
Ltd.
– Fraser and Neave,
Limited
Other listed REITs/
business trusts
Other listed REITs/
business trusts
Nil
Other directorships
– EC World Asset
– The Civil Aviation
Services Holdings Ltd
– Oversea-Chinese
Corporation Public
Company Limited
Banking Corporation
Limited
– Berli Jucker Public
Company Limited
– Great Eastern
– Fraser and Neave,
Holdings Limited
Limited
Management Pte.
Ltd., the manager of
EC World REIT
Other directorships
– One Bangkok
Holdings Co., Ltd.
– Precious Quay Pte.
Ltd.
– Precious Treasures
Pte. Ltd.
Authority of
Singapore
Other listed REITs/
business trusts
Nil
Other directorships
– WJY Holdings Pte Ltd
– WTT Investments Pte
Ltd
– Golden Land Property
Development Public
Company Limited
– Oishi Group Public
Company Limited
– Siam Food Products
Public Company
Limited
– Sermsuk Public
Company Limited
– Thai Beverage Public
Company Limited
– Univentures Public
Company Limited
Other listed REITs/
business trusts
– Univentures REIT
Management Co.,
Ltd., the manager of
Golden Ventures REIT
Other directorships
– Big C Retail Holding
Company Limited
– Eastern Seaboard
Industrial Estate
(Rayong) Company
Limited
– Food and Beverage
Holding Co., Ltd.
– Petform (Thailand)
Co., Ltd.
– TCC Assets (Thailand)
Company Limited
– Thai Beverage Can
Co., Ltd.
AdditionalXInfoXonXDirectors_v7.indd 411
11/12/19 5:52 PM
412 Frasers Property Limited
Additional Information
on Directors Seeking Re-Appointment
Present Principal
Commitments (other
than Directorships)
(as at 2 Dec 2019)
Past Directorships
(for the last five (5)
years) (from 2 Dec
2014 to 2 Dec 2019)
Mr Chan Heng Wing
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Non-Executive and
Independent Director
– Ministry of Foreign
– Advisor of Accuracy
Nil
Affairs: Non-resident
Ambassador to
Austria
– Milken Institute
Asia Centre (Senior
Advisor)
Singapore
– Design Education
Review Committee
(Chairman)
– National
Neuroscience
Institute (NNI)
Fund Committee,
SingHealth Fund
Mr Sithichai
Chaikriangkrai
Non-Executive and
Non-Independent
Director
– Thai Beverage Public
Company Limited
(Senior Executive Vice
President, Group CFO)
Other listed companies
Other listed companies
Other listed companies
Other listed companies
Nil
– Singapore Technologies
Nil
Nil
Other listed REITs/
business trusts
Other listed REITs/
business trusts
Nil
Other directorships
Nil
– Mapletree Industrial
Trust Management
Ltd, the manager of
Mapletree Industrial
Trust
Other directorships
Nil
Other listed REITs/
business trusts
Nil
Other directorships
– Fusang Corp (Labuan)
– Fusang Family Office
Pte Ltd (S)
– Fusang Investment
Office Pte Ltd (S)
– Fusang Family Office
Pte Ltd (HK)
– Fusang Investment
Office Pte Ltd (HK)
Engineering Ltd
Other listed REITs/
business trusts
Nil
Other directorships
– Learning Gateway Ltd
– Lifelong Learning
Endowment Fund
Advisory Council
– SkillsFuture Singapore
Agency
– Lifelong Learning
Institute Pte. Ltd.
– Experia Events Pte. Ltd.
– Singapore Airshow &
Events Pte. Ltd.
– Singapore Technologies
Engineering (Europe) Ltd
– Singapore Technologies
Aerospace Ltd
– Singapore Technologies
Dynamics Pte Ltd
– Singapore Technologies
Electronics Limited
– Singapore Technologies
Kinetics Ltd
– Singapore Technologies
Marine Ltd
– Vision Technologies
Marine, Inc.
– VT Systems
International, LLC
– Vision Technologies
Systems Inc
AdditionalXInfoXonXDirectors_v7.indd 412
11/12/19 5:52 PM
Additional Information
on Directors Seeking Re-Appointment
Annual Report 2019 413
Mr Chan Heng Wing
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Mr Sithichai
Chaikriangkrai
Non-Executive and
Non-Independent
Director
Past Directorships
(for the last five (5)
years) (from 2 Dec
2014 to 2 Dec 2019)
(cont’d)
Nil
Past Principal
Commitments (for
the last five (5) years)
(from 2 Dec 2014 to 2
Dec 2019)
Other directorships
(cont’d)
– The International
Institute for Strategic
Studies (Asia) Ltd
– ST Aerospace Resources
Pte. Ltd.
– ST Engineering Financial
I Ltd.
– ST Engineering Financial
II Pte. Ltd.
– President & CEO
of Singapore
Technologies
Engineering Ltd
– Group President
of Singapore
Technologies
Engineering Ltd
– Group President
of Corporate
Affairs, Singapore
Technologies
Engineering Ltd
– President of Singapore
Technologies
Automotive Ltd (now
known as ST Kinetics)
– Managing Director
Nil
and Head of
Corporate Banking
Singapore, United
Overseas Bank
Limited
Information Required
Disclose the following matters concerning an appointment of director, chief executive officer, chief financial officer, chief operating
officer, general manager or other officer of equivalent rank. If the answer to any question is "yes", full details must be given.
No
No
No
No
(a) Whether at any
time during the
last 10 years, an
application or a
petition under any
bankruptcy law
of any jurisdiction
was filed against
him or against
a partnership of
which he was a
partner at the time
when he was a
partner or at any
time within 2 years
from the date he
ceased to be a
partner?
AdditionalXInfoXonXDirectors_v7.indd 413
11/12/19 5:52 PM
414 Frasers Property Limited
Additional Information
on Directors Seeking Re-Appointment
Mr Chan Heng Wing
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Mr Sithichai
Chaikriangkrai
Non-Executive and
Non-Independent
Director
No
No
No
No
(b) Whether at any
time during the
last 10 years, an
application or a
petition under
any law of any
jurisdiction was
filed against an
entity (not being
a partnership)
of which he was
a director or an
equivalent person
or a key executive,
at the time when
he was a director
or an equivalent
person or a key
executive of that
entity or at any
time within 2
years from the
date he ceased to
be a director or an
equivalent person
or a key executive
of that entity,
for the winding
up or dissolution
of that entity or,
where that entity
is the trustee
of a business
trust, that
business trust,
on the ground of
insolvency?
(c) Whether there is
No
No
No
No
any unsatisfied
judgment against
him?
AdditionalXInfoXonXDirectors_v7.indd 414
11/12/19 5:52 PM
Additional Information
on Directors Seeking Re-Appointment
Annual Report 2019 415
Mr Chan Heng Wing
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Mr Sithichai
Chaikriangkrai
Non-Executive and
Non-Independent
Director
(d) Whether he
No
No
No
No
has ever been
convicted of
any offence,
in Singapore
or elsewhere,
involving fraud or
dishonesty which
is punishable with
imprisonment,
or has been
the subject of
any criminal
proceedings
(including any
pending criminal
proceedings of
which he is aware)
for such purpose?
(e) Whether he
No
No
No
No
has ever been
convicted of
any offence,
in Singapore
or elsewhere,
involving a
breach of any
law or regulatory
requirement
that relates to
the securities or
futures industry
in Singapore or
elsewhere, or has
been the subject
of any criminal
proceedings
(including any
pending criminal
proceedings of
which he is aware)
for such breach?
AdditionalXInfoXonXDirectors_v7.indd 415
11/12/19 5:52 PM
416 Frasers Property Limited
Additional Information
on Directors Seeking Re-Appointment
Mr Chan Heng Wing
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Mr Sithichai
Chaikriangkrai
Non-Executive and
Non-Independent
Director
No
No
No
No
(f) Whether at any
time during the
last 10 years,
judgment has
been entered
against him in any
civil proceedings
in Singapore
or elsewhere
involving a
breach of any
law or regulatory
requirement
that relates to
the securities or
futures industry
in Singapore or
elsewhere, or a
finding of fraud,
misrepresentation
or dishonesty
on his part, or
he has been the
subject of any
civil proceedings
(including any
pending civil
proceedings
of which he is
aware) involving
an allegation
of fraud,
misrepresentation
or dishonesty on
his part?
AdditionalXInfoXonXDirectors_v7.indd 416
11/12/19 5:52 PM
Additional Information
on Directors Seeking Re-Appointment
Annual Report 2019 417
Mr Chan Heng Wing
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Mr Sithichai
Chaikriangkrai
Non-Executive and
Non-Independent
Director
(g) Whether he
No
No
No
No
has ever been
convicted in
Singapore or
elsewhere of
any offence in
connection with
the formation
or management
of any entity or
business trust?
(h) Whether he
No
No
No
No
has ever been
disqualified
from acting as
a director or
an equivalent
person of any
entity (including
the trustee of a
business trust),
or from taking
part directly or
indirectly in the
management
of any entity or
business trust?
(i) Whether he has
ever been the
subject of any
order, judgment
or ruling of any
court, tribunal
or governmental
body, permanently
or temporarily
enjoining him
from engaging
in any type of
business practice
or activity?
No
No
No
No
AdditionalXInfoXonXDirectors_v7.indd 417
11/12/19 5:52 PM
418 Frasers Property Limited
Additional Information
on Directors Seeking Re-Appointment
Mr Chan Heng Wing
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Mr Sithichai
Chaikriangkrai
Non-Executive and
Non-Independent
Director
(j) Whether he
No
No
No
No
has ever, to his
knowledge, been
concerned with
the management
or conduct, in
Singapore or
elsewhere, of the
affairs of:
(i) any
No
No
No
No
corporation
which
has been
investigated
for a breach
of any law or
regulatory
requirement
governing
corporations
in Singapore
or elsewhere;
or
(ii) any entity
No
No
No
No
(not being a
corporation)
which
has been
investigated
for a breach
of any law or
regulatory
requirement
governing
such entities
in Singapore
or elsewhere;
or
AdditionalXInfoXonXDirectors_v7.indd 418
11/12/19 5:52 PM
Additional Information
on Directors Seeking Re-Appointment
Annual Report 2019 419
Mr Chan Heng Wing
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Mr Sithichai
Chaikriangkrai
Non-Executive and
Non-Independent
Director
(iii) any business
No
No
No
No
trust which
has been
investigated
for a breach
of any law or
regulatory
requirement
governing
business
trusts in
Singapore or
elsewhere; or
(iv) any entity
No
No
No
No
or business
trust which
has been
investigated
for a breach
of any law or
regulatory
requirement
that relates
to the
securities
or futures
industry in
Singapore or
elsewhere,
in connection
with any matter
occurring or
arising during
that period
when he was so
concerned with
the entity or
business trust?
AdditionalXInfoXonXDirectors_v7.indd 419
11/12/19 5:52 PM
420 Frasers Property Limited
Additional Information
on Directors Seeking Re-Appointment
(k) Whether he has
been the subject
of any current or
past investigation
or disciplinary
proceedings,
or has been
reprimanded
or issued any
warning, by
the Monetary
Authority of
Singapore or any
other regulatory
authority,
exchange,
professional body
or government
agency, whether
in Singapore or
elsewhere?
Mr Chan Heng Wing
Mr Tan Pheng Hock
Mr Wee Joo Yeow
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Non-Executive and
Independent Director
Mr Sithichai
Chaikriangkrai
Non-Executive and
Non-Independent
Director
No
No
Yes
No
On his appointment to
the board of a company
listed on the Singapore
Exchange Securities
Trading Limited on 2
January 2014, Mr Wee
had notified (the “Initial
Notice”) that listed
company of his interest
in shares in that listed
company. Due to an
inadvertent oversight,
his direct interest in a
further 10,000 shares
in that listed company,
which were purchased
prior to his appointment
to the board of that
listed company, was
omitted from the
Initial Notice. Upon
realising the omission
on 14 January 2014, he
immediately notified
that listed company.
As disclosure was not
made in respect of all his
interest in shares in that
listed company within
the prescribed time
period, the Monetary
Authority of Singapore
on 6 February 2014
issued a supervisory
warning to Mr Wee to
comply with section 133
of the Securities and
Futures Act (Chapter 289
of Singapore) and other
applicable laws and
regulations at all times.
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FRASERS PROPERTY LIMITED
(Incorporated in Singapore)
(Company Registration No. 196300440G)
Proxy Form
Annual General Meeting
I/We
of
IMPORTANT
1. Relevant intermediaries as defined in Section 181 of the
Companies Act, Chapter 50 of Singapore may appoint more
than two proxies to attend, speak and vote at the Annual
General Meeting.
2. For CPF/SRS investors who have used their CPF/SRS monies to
buy shares in Frasers Property Limited, this form of proxy is not
valid for use and shall be ineffective for all intents and purposes
if used or purported to be used by them. CPF/SRS investors
should contact their respective Agent Banks/SRS Operators if
they have any queries regarding their appointment as proxies.
3. By submitting an instrument appointing a proxy(ies) and/
or representative(s), the member accepts and agrees to the
personal data privacy terms set out in the Notice of Annual
General Meeting dated 23 December 2019.
(Name)
(NRIC/Passport/Co Reg Number)
(Address)
being a member/members of Frasers Property Limited (the “Company”), hereby appoint:
Name
Address
NRIC/Passport Number
Proportion of Shareholdings
No. of Shares
%
and/or (delete as appropriate)
Name
Address
NRIC/Passport Number
Proportion of Shareholdings
No. of Shares
%
or failing him/them, the Chairman of the Annual General Meeting (“AGM”) as my/our proxy/proxies to attend, speak and vote
for me/us on my/our behalf at the AGM of the Company to be held at 2.00 p.m. on Wednesday, 29 January 2020 at the Grand
Ballroom, Level 2, InterContinental Singapore, 80 Middle Road, Singapore 188966, and at any adjournment thereof. I/We
direct my/our proxy/proxies to vote for or against the resolutions to be proposed at the AGM as indicated below. If no specific
direction as to voting is given, the proxy/proxies may vote or abstain from voting at his/their discretion, as he/they may on
any other matter arising at the AGM.
No. of Votes
For*
No. of Votes
Against*
NO. RESOLUTIONS RELATING TO:
To re-appoint Director: Mr Chan Heng Wing
To re-appoint Director: Mr Tan Pheng Hock
To re-appoint Director: Mr Wee Joo Yeow
To re-appoint Director: Mr Sithichai Chaikriangkrai
ROUTINE BUSINESS
To receive and adopt the Directors’ statement and audited financial statements for
the year ended 30 September 2019 and the auditors’ report thereon.
To approve a final tax-exempt (one-tier) dividend of 3.6 cents per share in respect of
the year ended 30 September 2019.
(a)
(b)
(c)
(d)
To approve Directors’ fees of up to S$2,000,000 payable by the Company for the year
ending 30 September 2020 (last year: up to S$2,000,000).
To re-appoint KPMG LLP as the auditors of the Company and to authorise the
Directors to fix their remuneration.
SPECIAL BUSINESS
To authorise the Directors to issue shares and to make or grant convertible instruments.
To authorise the Directors to grant awards and to allot and issue shares pursuant to
the FPL Restricted Share Plan and/or the FPL Performance Share Plan.
To approve the proposed renewal of the mandate for interested person transactions.
To approve the proposed renewal of the share purchase mandate.
1.
2.
3.
4.
5.
6.
7.
8.
9.
* Voting will be conducted by poll. If you wish to exercise all your votes “For” or “Against” the relevant resolution, please tick (P) within the relevant box provided.
Alternatively, if you wish to exercise your votes both “For” and “Against” the relevant resolution, please indicate the number of shares in the boxes provided.
Dated this
day of
2019/2020+.
+ Delete whichever is inapplicable.
Signature(s) of Member(s) or Common Seal
IMPORTANT: PLEASE READ NOTES OVERLEAF
Total Number of
Shares Held (Note 1)
ProxyXForm_v2.indd 423
12/12/19 4:46 PM
fold and seal here
NOTES TO PROXY FORM:
1.
2.
If the member has shares entered against his name in the Depository Register (maintained by The Central Depository (Pte) Limited), he should insert that number
of shares. If the member has shares registered in his name in the Register of Members (maintained by or on behalf of the Company), he should insert that number
of shares. If the member has shares entered against his name in the Depository Register and registered in his name in the Register of Members, he should insert the
aggregate number of shares. If no number is inserted, this instrument appointing a proxy or proxies will be deemed to relate to all the shares held by the member.
(a) A member who is not a relevant intermediary is entitled to appoint not more than two proxies to attend, speak and vote at the Annual General Meeting.
Where such member’s form of proxy appoints more than one proxy, the proportion of his shareholding concerned to be represented by each proxy shall be
specified in the form of proxy.
(b) A member who is a relevant intermediary is entitled to appoint more than two proxies to attend, speak and vote at the Annual General Meeting, but each
proxy must be appointed to exercise the rights attached to a different share or shares held by such member. Where such member’s form of proxy appoints
more than two proxies, the number and class of shares in relation to which each proxy has been appointed shall be specified in the form of proxy.
“Relevant intermediary” has the meaning ascribed to it in Section 181 of the Companies Act, Chapter 50 of Singapore.
3. A proxy need not be a member of the Company.
4. The instrument appointing a proxy or proxies must be deposited at the Share Registration Office of the Company at Tricor Barbinder Share Registration Services
(A division of Tricor Singapore Pte. Ltd.), 80 Robinson Road #11-02, Singapore 068898, not less than 72 hours before the time appointed for holding the Annual
General Meeting.
5. Completion and return of the instrument appointing a proxy or proxies shall not preclude a member from attending, speaking and voting at the Annual General
Meeting. Any appointment of a proxy or proxies shall be deemed to be revoked if a member attends the Annual General Meeting in person, and in such event, the
Company reserves the right to refuse to admit any person or persons appointed under the instrument of proxy, to the Annual General Meeting.
6. The instrument appointing a proxy or proxies must be under the hand of the appointor or of his attorney duly authorised in writing. Where the instrument
appointing a proxy or proxies is executed by a corporation, it must be executed either under its common seal or under the hand of its attorney or a duly authorised
officer.
7. Where an instrument appointing a proxy or proxies is signed on behalf of the appointor by an attorney, the letter or power of attorney or a duly certified copy
thereof must (failing previous registration with the Company) be lodged with the instrument of proxy, failing which the instrument may be treated as invalid.
8. The Company shall be entitled to reject an instrument appointing a proxy or proxies which is incomplete, improperly completed, illegible or where the true
intentions of the appointor are not ascertainable from the instructions of the appointor specified in the instrument appointing a proxy or proxies (including any
related attachment). In addition, in the case of a member whose shares are entered in the Depository Register, the Company may reject an instrument appointing
a proxy or proxies if the member, being the appointor, is not shown to have shares entered against his name in the Depository Register as at 72 hours before the
time appointed for holding the Annual General Meeting, as certified by The Central Depository (Pte) Limited to the Company.
Postage will
be paid by
addressee.
For posting
in Singapore
only.
fold here
fold here
BUSINESS REPLY SERVICE
BUSINESS REPLY SERVICE PERMIT
PERMIT NO. 09560
NO. 09560
THE COMPANY SECRETARY
FRASERS PROPERTY LIMITED
SINGAPORE
c/o Tricor Barbinder Share Registration Services
(A division of Tricor Singapore Pte. Ltd.)
80 Robinson Road #11-02
Singapore 068898
BUSINESS REPLY SERVICE
PERMIT NO. 09560
SINGAPORE
ProxyXForm_v3.indd 424
17/12/19 3:41 PM
Fact Sheet
As at 30 September 2019
As at 30 September 2019
Overview
Frasers Property Limited (“Frasers Property” and together with its subsidiaries, the
“Group”), is a multi-national company that develops, owns and manages a diverse,
integrated portfolio of properties. Listed on the Main Board of the Singapore Exchange
Securities Trading Limited (“SGX-ST”) and headquartered in Singapore, the Group has total
assets of approximately S$37.6 billion as at 30 September 2019.
Frasers Property’s assets range from residential, retail, commercial & business parks, to
industrial and logistics in Southeast Asia, Australia, Europe and China. Its well-established
hospitality business owns and/or operates serviced apartments and hotels in over 70
cities across Asia, Australia, Europe, the Middle East and Africa. The Group is unified
by its commitment to deliver enriching and memorable experiences to customers and
stakeholders, leveraging its knowledge and capabilities from across markets and property
sectors, to deliver value in its multiple asset classes.
Frasers Property is also the sponsor of three real estate investment trusts (“REITs”) and one
stapled trust listed on the SGX-ST. Frasers Centrepoint Trust, Frasers Commercial Trust, and
Frasers Logistics & Industrial Trust are focused on retail, commercial, and industrial and
logistics properties, respectively. Frasers Hospitality Trust (comprising Frasers Hospitality
Real Estate Investment Trust and Frasers Hospitality Business Trust) is a stapled trust
focused on hospitality properties. In addition, Frasers Property Thailand is the sponsor
of Frasers Property Thailand Industrial Freehold & Leasehold REIT, which is focused on
industrial and logistics properties in Thailand and Golden Land Property Development
Public Company Limited is the sponsor of Golden Ventures Leasehold REIT which is focused
on commercial properties.
Group Structure and Businesses
Frasers Property at A Glance
• Among the top residential developers and one
of the largest mall owners and / or operators in
Singapore
• A leading diversified property group in Australia
•
•
•
and Thailand
S$3,791.9 million revenue in FY19
S$1,292.6 million PBIT1 in FY19
S$350.1 million attributable profit before fair
value change and exceptional items in FY19
~ 7,500
residential units completed
and settled in FY19
S$8.92 billion
industrial & logistics
assets under management
S$10.02 billion
retail assets under
management
S$8.32 billion
commercial & business park
assets under management
S$5.02 billion
hospitality assets under management
>21,5003 hospitality units
Singapore
Australia
Hospitality
Europe & rest of Asia
Frasers Property Limited
RESIDENTIAL
Over 21,000 homes built and two
projects under development
RETAIL
Has interests in 14⁴ retail malls in
Singapore
COMMERCIAL
Has interests in six office and business
space properties in Singapore
REIT
Holds a 36.4% stake in FCT, which
owns seven suburban malls5 in
Singapore and has a 31.15% stake
in Hektar REIT, a retail-focused REIT
in Malaysia
Holds a 25.7% stake in FCOT, which
owns six⁶ office and business space
/ park assets across Singapore,
Australia and the United Kingdom
(“UK”)
FEE INCOME
Asset management and property
management fees
DEVELOPMENT
A residential pipeline with an
estimated gross development
value (“GDV”) of S$8.0⁷,⁸ billion
MANAGEMENT BUSINESS
Owns and / or operates over 18,000
serviced apartments / hotel rooms
across more than 70 cities
REIT
Holds a 24.6% stake in FHT, which
owns 15 hotel and serviced
residence assets in prime locations
across Asia, Australia,
and Europe
FEE INCOME
Asset management and property
management fees
A commercial & industrial (“C&I”)
and retail pipeline with an
estimated GDV of S$2.37,9 billion
INVESTMENT – NON-REIT
S$1.37,10,11 billion portfolio of C&I
and retail investment properties,
with high occupancy rates and solid
tenant profile
REIT
Holds a 19.2% stake in FLT, which
owns 9112quality industrial and
logistics assets strategically
located in major industrial markets
in Australia and Europe
FEE INCOME
Asset management and property
management fees
GERMANY, AUSTRIA AND THE
NETHERLANDS
Assets under management of
S$2.313,14 billion across 52
properties
UNITED KINGDOM
S$1.915 billion of property assets
across residential, commercial and
business parks
CHINA
Three projects under development
and land bank of 919 units
THAILAND
Stakes in Frasers Property Thailand
and One Bangkok, Thailand’s
largest integrated development
VIETNAM
Stakes in Me Linh Point and
Q2 Thao Dien, a mixed-use
development
Asset Breakdown by Geographical Segment as at 30 Sep 19
Asset Breakdown by Asset Classes as at 30 Sep 19
Singapore
S$14.7b, 39%
Australia
S$7.9b, 21%
Business Parks/Offices
S$6.6b, 21%
Logistics/Industrial
S$6.7b, 21%
Total Assets
S$37.6 billion
Others16
S$8.7b, 23%
Europe
S$6.3b, 17%
Hospitality
S$4.8b, 15%
Development
S$5.5b, 17%
Total Property
Assets17
S$31.7 billion
Retail
S$8.1b, 26%
1
2
3
4
5
6
7
8
9
Profit before interest, fair value change, taxation and exceptional items
Comprises property assets in which the Group has an interest, including assets held
by its REITs, JVs and associates
Including both owned and managed properties, and units pending opening
Comprises retail property assets in Singapore in which the Group has an interest,
including PGIM ARF’s retail assets in Singapore and assets held by FCT (excluding
Eastpoint Mall, Valley Point Shopping Centre, Robertson Walk and Central Plaza)
Including Waterway Point, which FCT has a 40% stake
Refers to FCOT’s 50.0% indirect interest in Farnborough Business Park
Based on exchange rate S$/A$ : 0.9307 as at 30 Sep 2019
Excludes unrecognised lots and revenue; includes commercial area; Includes 100%
of joint arrangements (JO and JV) and PDAs; includes The Grove, which is conditional
and exchanged contracts under deferred payment terms
Estimated pipeline GDV includes GDV related to C&I developments for the Group’s
investment property portfolio, on which there will be no profit recognition; the
mix of internal and external C&I developments in the pipeline changes in line with
prevailing market conditions
Includes properties under development as at 30 Sep 2019
10
11 Completed divestments to FLT for Eastern Creek – FDM & TTI , Dana and Avery
Dennison during 4Q FY19
12 Excludes 610 Heatherton Road, Clayton South, Victoria, Australia as divestment is
expected to complete by end 2019
13 Comprises property assets in Germany, the Netherlands and Austria in which the
Group has an interest
14 Based on exchange rate S$/€: 1.5087 as at 30 Sep 2019
15 Based on exchange rate S$/£: 1.6984 as at 30 Sep 2019
16
Including China, Vietnam, Thailand, Malaysia, Japan, the Philippines, Indonesia and
New Zealand
17 Property assets comprise investment properties, property, plant and equipment,
investments in JVs and associates and properties held for sale
Growth Strategies
Achieve Sustainable Growth and Deliver Long-Term Shareholder Value
Balanced Portfolio
Grow asset portfolio in a balanced manner across geographies and property segments
•
•
•
•
>80% of the Group’s total property assets17 are recurring income assets
75% of the Group’s PBIT for FY19 was from recurring income sources¹⁸
>70% of the Group’s assets as at FY19 are in Singapore, Australia, and Europe
~70% of the Group’s PBIT for FY19 is generated from Singapore, Australia and Europe
Sustainable Earnings Growth
Optimised Capital Productivity
• Achieve sustainable earnings growth through significant
•
development pipeline, investment properties and fee income
Pre-sold revenue of S$1.6 billion across Singapore, China and
Australia provides earnings visibility over the next two to three
financial years
•
Optimise capital productivity through REIT platforms and active
asset management initiatives
Unrecognised Revenue from Key Markets
Capital Recycling Initiatives
S$million
S$billion
4.0
3.0
3.1
0.4
2.0
1.5
3.4
0.3
2.2
3.1
0.5
1.9
1.0
0.0
1.2
0.7
0.9
FY15
FY16
FY17
FY18
Singapore | Australia | China
4.0
3.0
2.0
1.0
0.0
1.6
0.4
1.0
0.2
FY19
FLT:
1,70019
Changi City
Point:
153
FHT:
655
Sofitel Sydney:
223
357 Collins St:
224
FTREIT:
114
FTREIT:
70
Industrial
Assets
93321
Industrial
Assets
24020
Industrial
Assets:
63822
Waterway
Point:
433
FY14
FY15
FY16
FY17
FY18
FY19
2.2
0.3
1.5
0.4
Financial Highlights
Selected Financials (S$ million)
PBIT by Business Segments (S$ million)
Revenue
PBIT
Attributable Profit before Fair Value
Change and Exceptional Items (“APBFE”)
Fair Value Change
Exceptional Items
Attributable Profit (“AP”)
FY19
3,791.9
1,292.6
350.1
321.6
(111.4)
560.3
FY18
(Restated)23
4,320.9
1,333.2
482.8
402.9
(136.0)
749.7
Singapore
Australia
Hospitality
Europe & rest of Asia
Corporate and Others
TOTAL
Key Ratios
Dividends
As at 30 Sep 19
S$2.54
3.4%
FY19
8.7 cents
~4X
As at 30 Sep 18
(Restated)23
S$2.56
5.5%
FY18
(Restated)23
13.9 cents
~4X
Interim Dividend (Singapore cents)
Final Dividend (Singapore cents)
Total Dividend (Singapore cents)
Dividend Yield
Payout Ratio (based on ABPFE)28
Payout Ratio (based on AP)29
Net Asset Value per Share24
Return on Equity25
based on APBFE
Earnings per Share26
Net Interest Cover27
Capital Management
Net debt / Total equity
Gross debt / Total assets
Gross debt / Property assets
Percentage of fixed rate debt30
Average debt maturity
Average cost of debt on portfolio basis
As at 30 Sep 19
85.9%
46.2%
54.8%
70.1%
3.0 Years
2.9% p.a.
As at 30 Sep 18
(Restated)23
83.8%
45.9%
53.8%
77.5%
3.3 Years
3.0% p.a.
FY19
465.6
280.6
131.8
466.8
(52.2)
1,292.6
FY19
2.4
3.6
6.0
3.3%
~ 50%
~ 38%
FY18
(Restated)23
483.8
345.4
130.8
430.7
(57.5)
1,333.2
FY18
(Restated)23
2.4
6.2
8.6
5.3%
~ 52%
~ 37%
Change
2.1 pp
0.3 pp
1.0 pp
(7.4 pp)
(0.3 Years)
(0.1 pp)
18 Excluding share of fair value change of joint ventures and associates
19
20 Comprised a portfolio of seven industrial properties and one call option property in
Including acquisition of two call-option properties
24 Presented based on number of ordinary shares on issue as at the end of the year
25 After distributions to perpetual securities holders over average shareholders’ fund
26 Calculated by dividing the Group’s APBFE (after distributions to perpetual securities
Australia
holders) over weighted average number of ordinary shares on issue
21 Comprised a portfolio of 21 logistics and industrial properties in Germany and the
27 Net interest excluding mark to market adjustments on interest rate derivatives and
Netherlands
22 Comprised a portfolio of 13 logistics and industrial properties in Australia, Germany
and the Netherlands, including two German properties which are yet to complete
23 Financial information for FY18 has been restated to take into account the
retrospective adjustments on the adoption of the new financial reporting
framework, Singapore Financial Reporting Standards (International) framework
(“SFRS(I)”) and new/revised SFRS(I). Certain financial statement line items have been
reclassified to conform with current year’s presentation
capitalised interest
28 Before distributions to perpetual securities holders
29 After distributions to perpetual securities holders
30
Includes debt that is hedged
NOTE: Unless otherwise stated, all figures in this document are as at 30 Sep 2019, the end of Frasers Property Limited’s latest reported financial year.
Experience matters.
We believe our customers’ experience matters.
When we focus on our customers’ needs, we gain valuable insights
which guide our products and services. We create memorable and
enriching experiences for our customers.
We believe our experience matters.
Our legacy is valuable and inspires our future successes. As a
multi-national business of scale and diversity, we can bring the
right expertise to create value for our customers. We celebrate the
diversity of our people and the expertise they bring, and we commit
ourselves to enabling their professional and personal development.
Glossary
For ease of reading, this glossary provides definitions of acronyms that are frequently used throughout this report
Frasers Property entities
Other acronyms
FPHT
: Frasers Property Holdings Thailand
: Frasers Centrepoint Trust
: Frasers Commercial Trust
: Frasers Hospitality Trust
: Frasers Logistics & Industrial Trust
: Frasers Property Australia
: Frasers Property China
: Frasers Property Europe
: Frasers Property Industrial
: Frasers Property Limited
: Frasers Property Singapore
: Frasers Property Thailand
: Frasers Property United Kingdom
: Frasers Property Vietnam
FCT
FCOT
FHT
FLT
FPA
FPC
FPE
FPI
FPL
FPS
FPT
FPUK
FPV
GOLD
GVREIT
FTREIT
: Frasers Property Thailand Industrial Freehold &
Leasehold REIT
: Golden Land Property Development Plc
: Golden Ventures Leasehold Real Estate Investment Trust
The Group
: Frasers Property Limited, together with our subsidiaries
AUM
BCA
CBD
DPU
ERM
FY
GDP
GDV
GFA
GLA
IR
JV
MTN
NAV
NLA
NPI
PBIT
PSF
PSM
REIT
APBFE
: Attributable profit before fair value
change and exceptional items
: Assets under management
: Building and Construction Authority, Singapore
: Central business district
: Distribution per unit
EMTN
: Euro medium-term notes
: Enterprise-wide Risk Management
GRESB
: Global Real Estate Sustainability Benchmark
: Financial year
: Gross domestic product
: Gross development value
: Gross floor area
: Gross lettable area
:
Investor relations
: Joint venture
: Medium-term notes
: Net asset value
: Net lettable area
: Net property income
: Profit before interest and taxation
PGIM ARF
: PGIM Real Estate AsiaRetail Fund
: Per square foot
: Per square metre
: Real estate investment trust
RevPAR
: Revenue per available room
SBU
: Strategic business unit
SGX-ST
: Singapore Exchange Securities Trading Limited
SQM
WALE
: Square metres
: Weighted average lease expiry
• All figures in this Annual Report are in Singapore currency unless otherwise specified
Mr Reini Otter
Chief Executive Officer
Frasers Property Industrial
(Appointed on 1 October 2019)
Company Secretary
Ms Catherine Yeo
Registered Office
438 Alexandra Road
#21-00 Alexandra Point
Singapore 119958
Tel: (65) 6276 4882
Fax: (65) 6276 6328
frasersproperty.com
Share Registrar
Tricor Barbinder Share
Registration Services
80 Robinson Road
#02-00
Singapore 068898
Tel: (65) 6236 3333
Fax: (65) 6236 3405
Auditors
KPMG LLP
Partner-in-charge:
Mr Ronald Tay Ser Teck
(Appointed on 29 January 2016)
Principal Bankers
Australia and New Zealand Banking
Group Limited
Bangkok Bank Public Company
Limited
Bank of China Limited
DBS Bank Ltd.
Malayan Banking Berhad
Mizuho Bank, Limited
Oversea-Chinese Banking
Corporation Limited
Standard Chartered Bank
Sumitomo Mitsui Banking
Corporation
United Overseas Bank Limited
Corporate
Information
Board of Directors
Mr Charoen Sirivadhanabhakdi
Non-Executive and Non-Independent
Chairman
Khunying Wanna Sirivadhanabhakdi
Non-Executive and Non-Independent
Vice Chairman
Mr Panote Sirivadhanabhakdi
Group Chief Executive Officer
Executive and Non-Independent
Director
Mr Charles Mak Ming Ying
Non-Executive and Lead
Independent Director
Mr Chan Heng Wing
Non-Executive and Independent
Director
Mr Philip Eng Heng Nee
Non-Executive and Independent
Director
Mr Tan Pheng Hock
Non-Executive and Independent
Director
Mr Wee Joo Yeow
Non-Executive and Independent
Director
Mr Weerawong Chittmittrapap
Non-Executive and Independent
Director
Mr Chotiphat Bijananda
Non-Executive and Non-Independent
Director
Mr Sithichai Chaikriangkrai
Non-Executive and Non-Independent
Director
Board Executive Committee
Mr Charoen Sirivadhanabhakdi
(Chairman)
Mr Charles Mak Ming Ying
(Vice Chairman)
Mr Chotiphat Bijananda
(Vice Chairman)
Mr Wee Joo Yeow
Mr Panote Sirivadhanabhakdi
Mr Sithichai Chaikriangkrai
Audit Committee
Mr Charles Mak Ming Ying
(Chairman)
Mr Philip Eng Heng Nee
Mr Wee Joo Yeow
Mr Sithichai Chaikriangkrai
Risk Management Committee
Mr Chotiphat Bijananda (Chairman)
Mr Charles Mak Ming Ying
Mr Chan Heng Wing
Mr Weerawong Chittmittrapap
Mr Panote Sirivadhanabhakdi
Mr Sithichai Chaikriangkrai
Remuneration Committee
Mr Philip Eng Heng Nee (Chairman)
Mr Charles Mak Ming Ying
Mr Chan Heng Wing
Nominating Committee
Mr Weerawong Chittmittrapap
(Chairman)
Mr Charles Mak Ming Ying
Mr Chan Heng Wing
Mr Chotiphat Bijananda
Group Management
Mr Panote Sirivadhanabhakdi
Group Chief Executive Officer
Mr Chia Khong Shoong
Group Chief Corporate Officer
Mr Loo Choo Leong
Group Chief Financial Officer
Mr Uten Lohachitpitaks
Group Chief Investment Officer
Mr Sebastian Tan
Group Chief Human Resources
Officer
Ms Zheng Wanshi
Group Chief Strategy and Planning
Officer
Mr Samuel Tan
Group Chief Digital Officer
Mr Christopher Tang Kok Kai
Chief Executive Officer
Frasers Property Singapore
Mr Rodney Vaughan Fehring
Chief Executive Officer
Frasers Property Australia
Mr Koh Teck Chuan
Chief Executive Officer
Frasers Hospitality
19_0111 FPL AR 2019 Cover _TP.indd 4-6
9/12/19 4:59 PM
Enhancing
Resilience
Annual Report 2019
F
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FRASERS PROPERTY LIMITED
Company Registration Number: 196300440G
438 Alexandra Road
#21-00 Alexandra Point
Singapore 119958
Phone: +65 6276 4882
+65 6276 6328
Fax:
frasersproperty.com
19_0111 FPL AR 2019 Cover _TP.indd 1-3
10/12/19 4:46 PM
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