Centrepoint Properties Expands Serviced Residences Business to United Kingdom

Singapore, October 1, 2001 – Centrepoint Properties Limited (CPL), the listed property arm of the Fraser and Neave Group and its hospitality management services subsidiary, Fraser Serviced Residences Pte Ltd (Fraser), has expanded its serviced residences business to United Kingdom with an investment of S$18.6 million.

CPL invested S$17.3 million (L6.64 million) for a 20 per cent share of FairBriar Residential Investment Partnership (FRIP), which owns two serviced apartment blocks with a total of 100 units, as well as two houses and four flats.

At the same time, Fraser Serviced Residences has invested S$1.3 million (L500,000) for a 50 per cent stake in FairBriar Residence Ltd, which manages various properties, including the portfolio held under FRIP. It will be renamed Fraser Residences Ltd following the deal, to leverage on the premier Fraser brand name in the extended stay market.

"The move by Fraser is in line with our strategy to strengthen our fee based income," said Dr Han Cheng Fong, CPL’s Deputy Chairman and Chief Executive Officer.

"And as FairBriar already manages 411 serviced apartments in London, including apartments in key locations such as Chelsea, Kensington, the City and Canary Wharf, it is an ideal vehicle for us to enter the UK and European market for serviced residences, besides other markets in the Asian region which we are actively pursuing with various partners," added Dr Han.

Mr Philip Van Reyk, Chief Executive of FairBriar, said: "The Centrepoint Properties Group is a high quality partner for our serviced residences venture and will act as a catalyst for further growth."

According to property consultant DTZ’s 2001 Prime Central London Residential Report, one and two-bedroom apartments in Chelsea, Kensington, South Kensington, Belgravia, Mayfair, Regent’s Park and Knightsbridge are the most commonly sought-after properties. London Residential Research also reports very strong demand for extended-stay accommodation, especially from the corporate sector.

CPL’s General Manager for Hospitality Services, Mr Choe Peng Sum, said: "There is tremendous potential for serviced apartments in London. London has the same supply of service apartments as Singapore – about 3,500 units – but the market is much larger," he added.

"Hotels rooms are generally too small and too expensive for extended stay, which is anything longer than two weeks," said Mr Choe. "Fraser’s concept is to provide more than just rooms. We offer customised living spaces, like building an audio-video room from scratch; and programmes for spouses and children to make them feel more at home," added Mr Choe.

In Singapore, Fraser’s two developments – Fraser Suites Serviced Residences at Valley Point, and Fraser Place Serviced Residences at Robertson Walk – continue to see occupancy above 90 per cent.

Last October, it sealed a $133.6 million deal with Rodamco Asia NV to jointly own and manage a 213-unit block in downtown Seoul, South Korea. It also clinched a contract to manage a 148-unit premium development in the heart of the Makati Central Business District in Manila, Philippines. Both developments are expected to open within the next year.

ENDS

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About Centrepoint Properties Limited

Centrepoint Properties Limited (CPL) is an 83.5 per cent owned subsidiary of Fraser and Neave Limited. Its principal activities are property development, property investment and management, project management and marketing. In addition to its own portfolio, CPL also provides project and property management services to Fraser and Neave Limited and Fraser & Neave Holdings Bhd. As one of Singapore’s key property players, CPL has an established reputation as the largest owner and manager of shopping malls, a premier operator of serviced residences and a developer of quality homes.

About Fraser Serviced Residences Limited

Fraser Serviced Residences Pte Ltd is a branded hospitality arm of Centrepoint Properties Limited. Fraser Suites Serviced Residences and Fraser Place Serviced Residences are two premier serviced apartments in Singapore managed by the company. Fraser Suites Serviced Residences offers a choice of 251 apartment units purpose-built for the modern and highly mobile businessmen and women. Fraser Place Serviced Residences has 163 units targeting at expatriate families with young children.

About FairBriar PLC

FairBriar PLC is a residential development, asset management and serviced apartment business.

The development side of the business has recently developed substantial schemes at Stanhope Gardens, London SW7 (70 apartments), Pepys Street, London, EC1 (89 apartments) and has a substantial scheme due to commence soon at Islington Green, London N1 (70 apartments). Recently, it acquired a serviced apartments property at Nell Gwynn House, Sloane Avenue, SW3 (124 serviced apartments).

The serviced apartment business FairBriar Residence operates 411 units in London located in Kensington, Chelsea, the City and Canary Wharf.