Frasers Centrepoint is pressing ahead with the initial public offering of an Australian real estate investment trust in Singapore but the timing might be less than ideal with a US interest rate hike looming next month.
On Friday the Singaporean property developer began bookbuilding for the S$903 million $663 million Frasers Logistics Industrial Trust, which is backed by its Australian assets acquired through the takeover of Australand Property Group in 2014.
The transaction comes at a time when market sentiment for the asset class appears to be deteriorating after US policymakers revealed last month there is a high possibility of an interest rate hike in June.
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