Frasers Property Chairman Charoen Retires as Developer Welcomes New Directors

Thai billionaire Charoen Sirivadhanabhakdi has retired from his role as chairman of Frasers Property as part of a board refresh at the Singapore-based real estate giant.

Charoen, the 80-year-old patriarch of Frasers Property’s controlling family, stepped down on 8 February and was succeeded by corporate veteran Chumpol NaLamlieng as non-executive chairman and independent director, according to a release. Charoen received the honorary title of chairman emeritus in recognition of the liquor tycoon’s “extraordinary contributions” to the developer.

Tan Pheng Hock, a non-executive independent director, also retired after eight years, to be replaced by former Accenture executive Nithinart Sinthudeacha. The board shake-up follows last September’s S$2.1 billion ($1.7 billion) share swap with Charoen-founded drinks maker ThaiBev, a transaction that saw family-controlled holding vehicle TCC Assets increase its stake in Frasers Property from 58.1 percent to 86.89 percent in a bid to boost the SGX-listed builder’s valuation.

“The board and I are deeply grateful for the inspiring leadership and invaluable contributions of Mr Charoen as chairman of the board over the years, and look forward to continuing to benefit from his wisdom and insights,” said Frasers Property CEO Panote Sirivadhanabhakdi, the son of the retired chairman.

Former Singtel Chair

Newly minted chairman Chumpol is a former president of Thailand’s Siam Cement Group and currently serves as vice chairman of the company and its SCG Chemicals unit. He chaired Singapore state telecom Singtel from 2003 to 2011 and has held directorships at companies including British Airways, Siam Commercial Bank and Kempinski International.

Chumpol began his career as a loan officer at the World Bank and later helped set up Thai investment bank Tisco. He earned a bachelor’s degree in mechanical engineering from the University of Washington and an MBA from Harvard Business School.

Nithinart has served as managing director of HR consultancy N-Able Plus since 2007 and is also co-founder, director and chairwoman of Beryl 8 Plus, a Thailand-listed tech consulting firm. She sits on the boards of ThaiBev and Bangkok-based pharmaceutical maker Mega Lifesciences, among others.

An English graduate of Thailand’s Chulalongkorn University, Nithinart also holds a doctorate in organisation and human resource development, a master’s degree in management and organisational policy and a master’s in communications and public relations, all from Boston University.

Gearing Climbs

Frasers Property posted an attributable profit of S$206.3 million for its financial year to the end of September, up 19.2 percent, but the company’s net gearing stood at 83.4 percent, up 7.6 points from a year earlier. The measure of net debt to total equity continued to climb to 86.4 percent at the end of December, according to a business update.

The company said net gearing rose mainly due to capital expenditure, especially Frasers Logistics and Commercial Trust’s S$140.3 million purchase of a Singapore warehouse from regional industrial giant ESR.

Despite a higher-for-longer interest rate environment, Frasers Property remains well positioned to repay or refinance all debt due in the next 12 months, aided by a high proportion of fixed-rate debt, according to the company.