Overall, DBS expects “resilient performance” from FPL in the coming years on the back of higher revenue recognition from development projects in Singapore, China and Australia; steady returns from its industrial, logistics and commercial properties in Europe, the UK, Australia and Asean; project completions across its industrial and logistics portfolios; and improving outlook for its hospitality business.
Within the residential segment, FPL (with its partners) have been awarded two government land sales (GLS) tenders at Dunearn and Kallang Close for a consideration of close to $1.1 billion, offering a total land bank of close to 830 to 850 units.
In particular, DBS sees The Centrepoint and Valley Point as “potential value-unlocking key candidates within its Singapore portfolio to be unveiled over time”. “Both assets are well-located within the Core Central Region (CCR) but are relatively mature, and thus present clear opportunities for asset enhancement or redevelopment.”
FPL’s “next strategic pivot” will be to redevelop these legacy assets, which Foo estimates will drive a “significant” revalued net asset value (RNAV) uplift.
See also: Frasers Property poised for rejuvenation of Centrepoint after buying 'rear plot' for $391.9 mil
Foo stays “buy” on FPL with a $1.50 target price, pegged to a 45% discount to RNAV, lower than a 55% discount previously.
Notably, Foo says FPL is an “attractive privatisation candidate”, with potential upside to dividends driven by higher profitability ahead.
See also: New launch in 4Q2026 at Marina Square site: PropNex
Redevelopment of Valley Point
Valley Point is a 999-year mixed-use development in the River Valley Precinct, comprising a 20-storey office tower and a two-storey shopping mall. On the site is also the 255-unit Fraser Suites Singapore, an asset previously owned by the formerly listed Frasers Hospitality Trust.
According to DBS, FPL has received written permission for a four-block redevelopment comprising a residential component (417 units), serviced residences (184 units) and a commercial podium with 624,000 sq ft of gross floor area (GFA) in total.
While the property is last valued at $351 million, Foo believes its real cost is “much lower”. “Based on the new redevelopment scheme, we estimate that the total gross development value of the site to be $2.0 billion to $2.1 billion, with a profit before tax margin in excess of 40% when launched sometime in 2H2026.”
Reinventing The Centrepoint
In February, FPL was awarded the tender for the leasehold rear plot at The Centrepoint for a consideration of $391.9 million, consolidating its ownership of the seven-storey property.
The consolidation of the group’s ownership in The Centrepoint recently is notable as it signals the potential start of a broader asset rejuvenation cycle within Orchard Road, says DBS’s Foo.
The Centrepoint, completed in 1983, is FPL’s first asset. It also has full ownership of 51 Cuppage Road, a 10-storey office building directly linked to The Centrepoint.
DBS thinks FPL could tap the Strategic Development Scheme (SDI) for the combined site. The Urban Redevelopment Authority (URA) introduced the scheme in 2019 to encourage the redevelopment of older buildings in strategic areas, offering bonus GFA to successful applicants.
DBS assumes the new development will have a 30% uplift in GFA above current existing plot ratios. This could be a “game-changer for FPL”, adds Foo, which could “unlock higher plot ratios, enhance asset quality and drive stronger long-term returns”.
In addition, gross development value from the site could grow by over five times, says Foo.
Strategic strides
FPL has undertaken a series of “deliberate strategic actions in recent quarters” that Foo believes reflect a “clearer pivot” towards active capital recycling, portfolio optimisation and value crystallisation.
Execution capabilities are also being strengthened at the corporate level, notes Foo. The appointment of Tony Lombardo as group chief operating officer from Oct 1 is a “meaningful addition”, she adds.
“With prior experience as group CEO of Lendlease Group, Lombardo brings deep expertise across large-scale urban regeneration, development and capital partnerships. While his appointment as group COO is positioned primarily around strengthening execution and capital deployment capabilities, we think the addition of a seasoned operator with prior group CEO experience also incrementally deepens the leadership bench, providing the group with greater strategic flexibility over time,” writes Foo.
Shares in FPL have fallen 5.3% to $1.07 year to date.
