Far East Orchard lifts AUM to S$3.9 billion after buying majority of FEHT manager stake

Far East Orchard announced a S$28.3 million cash purchase of a further 42% stake in the managers of Far East Hospitality Trust, taking its holding from 33% to 75%. The transaction covers shares in FEO Hospitality Asset Management, which runs the Far East Hospitality REIT, and FEO Hospitality Trust Management, the trustee-manager of the Business Trust. FEHT, a hospitality stapled group with a market capitalisation of S$1.25 billion, owns 13 properties - twelve in Singapore and one hotel in Japan.

The acquisition lifts Far East Orchard's core assets under management from S$2.1 billion to S$3.9 billion, an 86% increase that exceeds its original S$3 billion target and underpins a new ambition of at least $5 billion by FY2030. Alan Tang, group CEO, described the deal as a key step toward a fully integrated lodging platform and greater capital-efficient growth. As part of the deal, the asset-management arm will distribute a dividend-in-specie of about 165.2 million FEHT stapled securities, and Far East Orchard’s share price closed marginally higher at S$1.06.