MEDIA RELEASE
Proceeds to be redeployed to pursue higher-yielding real estate opportunities
Redeployment of proceeds to further strengthen its real estate ecosystem
SINGAPORE, 5 September 2014 – The Straits Trading Company Limited (“Straits Trading” or
“Company”) announced today that it has signed an agreement for the sale of the Straits Trading
Building to the Sun Venture Group (“Sun Venture”), for $450 million.
The monetisation is in line with the Company’s strategy of redeploying its capital from its portfolio of
high quality, but low yielding investment properties into potentially higher return real estate
opportunities.
The redeployment of the proceeds will also strengthen the development of Straits Trading’s real
estate ecosystem anchored by its 89.5% interest in Straits Real Estate Pte. Ltd., its 20.1% interest in
ARA Asset Management Ltd, and its 5.8% aggregate interest in Suntec REIT.
Ms Chew Gek Khim, Executive Chairman of Straits Trading said, “The monetisation of the Straits
Trading Building is a significant step to unlock value from our property assets and transform our real
estate business into an engine of growth. In redeploying the proceeds, we will be able to pursue a
wider spectrum of value-accretive real-estate opportunities and also further the development of our
real estate ecosystem."
The Company is expected to realise an estimated capital gain of $39 million on the sale of the
building based on its latest book value as at 30 June 2014. Based on historical cost, the gain to the
Company will be $373 million.
Sun Venture is a Singapore-based real estate developer and investor which currently owns and
manages various commercial real estate in Singapore. Sun Venture's portfolio of commercial assets
include an office building at 50 Scotts Road, four floors at Samsung Hub, Westgate Tower and Paya
Lebar Square.
The transaction is expected to be completed by the end of 2014.
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