Far East Orchard crosses $3 billion AUM target with higher stakes in business trust managers
FEO is acquiring a 42% stake in Far East Hospitality Trust managers for $28.3 million.
Far East Orchard has surpassed its $3 billion assets under management (AUM) target by acquiring a 42% stake in the managers of Far East Hospitality Trust (FEHT). This acquisition occurred on October 5 and will increase Far East Orchard's AUM to $3.9 billion, four years ahead of schedule. The deal values the managers at $28.3 million, raising Far East Orchard's ownership from 33% to 75%.
The remaining 25% will be held by FEO Asset Management, a subsidiary of Far East Organization Centre. The acquisition includes shares in both FEO Hospitality Asset Management and FEO Hospitality Trust Management, which manage Far East Hospitality Real Estate Investment Trust (FEH-Reit) and Far East Hospitality Business Trust (FEH-BT), respectively.
FEHT, a hospitality group with a market capitalization of $1.25 billion, owns 13 properties across Singapore and Japan. Far East Orchard's CEO, Alan Tang, stated that this strategic move aligns with the company's "FEOR30" business roadmap, supporting a new core AUM target of at least $5 billion by 2030. The $28.3 million acquisition will be paid in cash from Far East Orchard's internal resources, and FEO Hospitality Asset Management will distribute a dividend to shareholders in the form of FEHT stapled securities.
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