First Sponsor Group bets on Europe, not China, to boost profits

SINGAPORE (May 24): Less than four years after its public offering as a play on China’s red-hot property market, Singapore’s First Sponsor Group is banking on continental Europe to fuel earnings growth.

The company, which counts Hong Leong Group Singapore and Tai Tak Estates among its shareholders, has 44% of its assets in Europe, mainly hotels and office buildings. It wants to expand in Germany, where it has a hotel, and is looking to buy assets in European markets such as Ireland and Austria, where Hong Leong doesn’t already have a presence via its Millennium & Copthorne Hotel subsidiary.

“We expect growth predominantly to come from Europe, but will continue to maintain a significant presence in the People’s Republic of China,” said Chief Executive Officer Neo Teck Pheng. He said First Sponsor generated 45% of last year’s profit from its European assets, with the remaining 55% coming from China.

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