million (approximately SGD 21.2 million) to fit out the mall
which is expected to be operational by 3rd quarter 2016.
For more information on Straits Real Estate, please visit
ARA Asset Management Limited (“ARA”)
Established in 2002 and listed on SGX in 2007, ARA is one
of the largest real estate fund managers in the region with
total assets under management of S$26.3 billion (as at
31 December 2014). It manages listed REITs in the Asia
Pacific region and also provides real estate management
services.
ARA has a successful track record in growing its assets
under management and its expertise in property fund
management can also be leveraged within Straits Trading’s
real estate ecosystem.
Separately, as you may be aware, the Monetary Authority
of Singapore is proposing a new Corporate Governance
framework to regulate the Singapore REIT sector in which
ARA is a key player. As the new framework is currently in its
preliminary form as a consultation paper, its specific impact
is not evident at the time of publication. We are however
confident that whatever measures are implemented will
be beneficial to Singapore’s REIT market and will serve to
enhance its prospects for growth.
For more information on ARA Asset Management Limited,
please visit
Far East Hospitality Holdings Pte. Ltd. (“Far East
Hospitality”)
Far East Hospitality has a large scalable platform of hospitality
assets and a hotel management business. In August 2014,
Far East Hospitality made its maiden entry into Europe with
the acquisition of a 50% interest in four hotel properties
in Denmark and Germany. It also expanded its reach into
Australia with the acquisition of two buildings in the central
business districts of Sydney and Brisbane that are slated for
hotel conversion. These acquisitions will provide further scale
and enable Far East Hospitality to expand its growth platform.
For more information on Far East Hospitality, please visit
Malaysia Smelting Corporation Berhad (“MSC”)
After exiting its Indonesian operations, MSC will concentrate
on its profitable tin mining and smelting operations in
Malaysia. In this regard, MSC acquired an 80% stake in
SL Tin Sdn. Bhd in March 2014, which has a 15-year mining
lease in the state of Pahang.
For more information on MSC, please visit
FINANCIAL PERFORMANCE
For the financial year ended 31 December 2014 (“FY2014”),
Straits Trading posted a net profit of $18.6 million largely
from the gain on the disposal of STB and contribution
from ARA. Revenue for FY2014 was lower as the hospitality
business was divested in the second half of 2013.
DIVIDENDS
We are declaring an interim dividend payout of 4 cents per
share for FY2014. We will continue to work towards a fair
and sustainable dividend policy.
BOARD CHANGES
Mr Gautam Banerjee, Lead Independent Director and
Chairman of the Audit Committee stepped down from the
Board at the end of last year due to his increased workload
from a change in his role in the Blackstone Group. On behalf
of the Board and Management, I would like to thank him for
his valuable counsel to the Group.
We are pleased to welcome Dr Gary Weiss and Mr Timothy
Chia, who were appointed to the Board on 1 June 2014
and 27 February 2015, respectively. Dr Weiss was appointed
to the Board as an Independent and Non-Executive
Director and is currently the Executive Director of Ariadne
Australia Limited, an investment company listed on the
Australian Securities Exchange with operations in Australia
and New Zealand. Mr Chia was appointed to the Board as
Lead Independent Director and is the Chairman of Hup
Soon Global Corporation Limited (“Hup Soon Global”) and
CHAIRMAN’S STATEMENT
8
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
