Koh Wee Meng, founder and chairman of property developer Fragrance Group, has been building up his direct stakes in his property and hotel businesses. On May 13, Koh acquired three million shares of Fragrance for 25 cents each. That purchase raises his final direct shareholding to 4.9 billion shares, or 73.3% of the company. Together with his wife Lim Wan Looi, he owns 84.2% of Fragrance.

On May 10, Koh also bought four million shares of Global Premium Hotels, Fragrance’s hotel arm, of which he is non-executive chairman, for 26.5 cents each. Three days later, he acquired a million shares at the same price. Following the purchase, Koh’s direct interest in Global Premium Hotels stands at 46 million shares, or 4.37% of the company. He is also deemed interested in the 52.3% of the hotel owner and operator held by Fragrance Group.

In April 2012, Fragrance listed its hotel arm under Global Premium Hotels to operate 22 hotels under the Fragrance brand and one hotel under the Parc Sovereign brand while retaining a majority stake in the newly-listed entity. Following the successful listing, Koh became Forbes’ 15th richest man in Singapore, with a reported net worth of $1.4 billion.

Fragrance reported its 1QFY2013 ended March earnings on April 29, with a 17.3% year on year (y-o-y) increase in 1Q sales revenue to $110.5 million, on the back of a $16.6 million increase in property development revenue. That includes the revenue contribution from 60%-owned Parc Rosewood condominium, as well as other projects such as Suites @ Paya Lebar, Suites @ Bukit Timah and Parc Elegance. Hotel revenue from Global Premium Hotels declined 2.1%. Group earnings dipped 20.2% y-o-y to $17.6 million.


Global Premium Hotels, which also reported its 1QFY2013 ended March results on the same day, saw a 2.1% y-o-y dip in sales to $14.6 million for the quarter. The decline was the result of the 2.1 percentage point drop in average room occupancy rates, despite stable revenue per available room (revpar) of $91.40, and the $158,000 loss of rental income, following the completed divestment of its Changi Road and Pasir Panjang properties. Earnings fell 32% y-o-y to $4.3 million. Management says it is expecting the performance of its mid- and economy-tier hotels to be resilient, despite increasing competition from the new supply of hotel rooms, and is on schedule to add 270 hotel rooms at its new hotel development at Tyrwhitt Road when it is completed by 1H2014.

Elsewhere, Ronnie Tan, CEO of First Real Estate Investment Trust (REIT)’s manager Bowsprit Capital Corp, has been buying shares in the healthcare REIT. From April 30 to May 13 OCBC Nominees Singapore acquired 142,000 units in First REIT at between $1.40 and $1.41 per unit, on Tan’s behalf. The latest acquisition of 17,000 units on May 13 brought Tan’s final deemed unit holding to 4.95 million units, or 0.7% of the company. Tan also holds a direct stake of 29,000 units or less than 0.01% of the company.

In April, First REIT reported a healthy 23.4% y-o-y growth in net property income to $17.1 million for 1QFY2013 ended March 31, in line with its 25% increase in revenue to $17.5 million. The increase was boosted by two newly acquired properties — Siloam Hospitals Makassar and Siloam Hospitals Manado & Hotel Aryaduta Manado. Distribution per unit also rose 9.4% to 1.74 cents.

On May 13, First REIT completed the acquisition of two Indonesian properties from its sponsor, Lippo Karawaci. Siloam Hospitals Bali was acquired for a $97.3 million, and Siloam Hospitals TB Simatupang in Jakarta was acquired for $93.1 million. First REIT’s management says it would continue to look for yield-accretive, quality healthcare assets in Asia, as demand for quality healthcare in Indonesia continues to be strong. The management also adds that it has the right of first refusal for 15 more hospitals from Lippo Karawaci, which would provide a steady pipeline of healthcare assets for acquisition.