Straits Trading’s real estate business comprises its 89.5%
stake in Straits Real Estate Pte. Ltd. (“Straits Real Estate”) and
its 20.1% stake in ARA Asset Management Limited (“ARA”),
a 6.1% aggregate interest in Suntec REIT as well as an
investment property portfolio overseen by Straits Investment
Partners, a managed account under ARA.
REAL ESTATE ECOSYSTEM
Collectively they form Straits Trading’s real estate ecosystem,
a structure that possesses the capabilities to seed, invest,
monetise and recycle capital across a range of asset classes
within the real estate space. Through this ecosystem,
Straits Trading is able to leverage off the competencies of
these various real estate related platforms to access a wide
spectrum of real estate related opportunities from seeding
and sponsoring real estate funds to investing in real estate
securities to direct investment in real estate.
STRAITS REAL ESTATE PTE. LTD.
Straits Real Estate is Straits Trading’s new growth engine
for its real estate business. It is an investment vehicle that
seeks out higher returning real estate related investments
and opportunities globally. Straits Real Estate became
operational in 2014.
Real Estate Investor with Strong Financial Backing
With a total capital commitment of S$950 million from
Straits Trading and the John Lim Family Office, and with the
flexibility to invest in direct real estate as well as real estate
backed instruments and securities globally, Straits Real Estate
is able to capitalise on attractive investment opportunities
when they become available. Straits Real Estate’s modus
operandi is in allocating and deploying its capital into suitable
real estate investment opportunities. This is often undertaken
through collaborations with real estate developers or
operators who have intimate knowledge of local markets and
strong operational capabilities.
Management Team with Proven Expertise
The Straits Real Estate team has extensive experience
investing in major regional markets, possesses a deep
understanding of risk and has access to a strong pipeline
of deal flow; all of which are prerequisites to effective
implementation of the Straits Real Estate business model.
The team will focus on opportunities that they are confident
of creating value in and extracting value from, and have
attractive risk-return profiles. In so doing, Straits Real Estate
is confident of delivering strong returns to the investors.
Having the right team in place lays the foundation for
development of the business in future.
(Refer to page 19 for more information).
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THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
