Straits Trading Company

[CCUV]

Look like Tan Chin Tuan need to come back to make things right...spiritually

[fatpudge]

Hi guys, take a look at the annual report page 11, I saw an Albert Einstein lookalike. haha



http://straitstrading.listedcompany.com/...ECCY.1.pdf

[cyclone]

Not bad. Around 29% gain in AUD. When did they buy it ?

The Straits Trading Company Limited wishes to announce that its subsidiary, Straits Real Estate Pte. Ltd., through its subsidiary, SRE Investment 1 (Australia) Pty Ltd, has today entered into a conditional sale and purchase agreement (the "SPA") in relation to the sale (the "Proposed Sale") of an office building located at 114 William Street, Melbourne, Australia (the "Property") to AFIAA Australia 4 Pty Ltd. The Property will be sold for a sale price of approximately AUD161.5 million (approximately SGD171.8 million).

The completion of the SPA is conditional upon the approval of the Proposed Sale by the Foreign Investment Review Board of Australia

The Property is a 26-storey office building with 22 levels of office space, one level of ground retail space and two basement car park floors. The Property provides a total net lettable area of 21,010.80 sq. metres. The Property sits on a freehold land site of 1,856 sq. metres at the corner of William and Little Collins Streets in the heart of the financial and legal precincts in the Western Core of the Melbourne Central Business District.

The Property, acquired at a purchase consideration of approximately AUD125.0 million, is valued at AUD134.0 million as at 30 June 2016.

Based on a rate of exchange of SGD1.00 = AUD0.94 as at 20 October 2016

[Muck]

Not bad. Around 29% gain in AUD. When did they buy it ?

The Straits Trading Company Limited wishes to announce that its subsidiary, Straits Real Estate Pte. Ltd., through its subsidiary, SRE Investment 1 (Australia) Pty Ltd, has today entered into a conditional sale and purchase agreement (the "SPA") in relation to the sale (the "Proposed Sale") of an office building located at 114 William Street, Melbourne, Australia (the "Property") to AFIAA Australia 4 Pty Ltd. The Property will be sold for a sale price of approximately AUD161.5 million (approximately SGD171.8 million).

The completion of the SPA is conditional upon the approval of the Proposed Sale by the Foreign Investment Review Board of Australia

The Property is a 26-storey office building with 22 levels of office space, one level of ground retail space and two basement car park floors. The Property provides a total net lettable area of 21,010.80 sq. metres. The Property sits on a freehold land site of 1,856 sq. metres at the corner of William and Little Collins Streets in the heart of the financial and legal precincts in the Western Core of the Melbourne Central Business District.

The Property, acquired at a purchase consideration of approximately AUD125.0 million, is valued at AUD134.0 million as at 30 June 2016.

Based on a rate of exchange of SGD1.00 = AUD0.94 as at 20 October 2016

The building was purchased in Aug 2015 when sgd:aud were almost on par. For a 14-mth holding. I think it's pretty impressive. I doubt they were expecting the opportunity to profit so soon. From the 2015 Annual Report:
"114 William Street was originally developed in 1976 but remains in very good condition largely due to a timeless design, good maintenance and intermittent upgrading carried out by the previous owners. Notwithstanding the good condition of the building, this asset presents Straits Real Estate with value-adding opportunities in a number of ways. Straits Real Estate will proactively manage the asset to update and renew it over the next few years, with the objective of bringing the passing rent to fair market levels to realise the asset’s full protential. "

[cyclone]

Request for Trading Halt : Pending release of an announcement.

Must be related to ARA Asset Management.

[cyclone]

Not bad. Around 29% gain in AUD. When did they buy it ?

The Straits Trading Company Limited wishes to announce that its subsidiary, Straits Real Estate Pte. Ltd., through its subsidiary, SRE Investment 1 (Australia) Pty Ltd, has today entered into a conditional sale and purchase agreement (the "SPA") in relation to the sale (the "Proposed Sale") of an office building located at 114 William Street, Melbourne, Australia (the "Property") to AFIAA Australia 4 Pty Ltd. The Property will be sold for a sale price of approximately AUD161.5 million (approximately SGD171.8 million).

The completion of the SPA is conditional upon the approval of the Proposed Sale by the Foreign Investment Review Board of Australia

The Property is a 26-storey office building with 22 levels of office space, one level of ground retail space and two basement car park floors. The Property provides a total net lettable area of 21,010.80 sq. metres. The Property sits on a freehold land site of 1,856 sq. metres at the corner of William and Little Collins Streets in the heart of the financial and legal precincts in the Western Core of the Melbourne Central Business District.

The Property, acquired at a purchase consideration of approximately AUD125.0 million, is valued at AUD134.0 million as at 30 June 2016.

Based on a rate of exchange of SGD1.00 = AUD0.94 as at 20 October 2016

The Board of Directors of the Company is pleased to announce that completion of the Proposed Sale has taken place today.

[cyclone]

Financial Results for the year ended 31 December 2016

Highlights:
1. Improved performance across all business segments
2. The Group’s real estate operations was a major contributor in FY2016 with a PATNCI of $52.7 million
3. The Group’s 54.8%-owned Malaysian Smelting Corporation Berhad contributed PATNCI of $5.7 million
4. The Group’s hospitality segment recorded PATNCI of $4.3 million, compared with $2.0 million in FY2015
5. Earnings per share increased to 16.5 cents
6. Net asset value per share as at 31 December 2016 was $3.34 versus today's closing price of $2.05
7. Net debt to total equity of 22.5% as at 31 December 2016 versus 22.8% as at 31 December 2015
8. Total numer of shares in issue as at 31 December 2016 was 408,095,772 shares
9. Dividend per share increased to 6 cents, payable at 5 May 2017.

PATNCI = Profit attributable to owners of the Company

More details in :
1. http://infopub.sgx.com/FileOpen/4Q2016Re...eID=441380
2. http://infopub.sgx.com/FileOpen/4Q2016Me...eID=441381

[Muser]

The restructured business looks like a good long term investment.

1. Focus on an asset-light business model for real-estate and hospitality means less capex requirements in future, and better returns
2. Fee-based income streams thro fund & asset management should improve ROE & free cash flows in next few years
3. Diversified real-estate portfolio (REITs, fund management, hard assets etc.)
4. Proxy route to stay invested in ARA Asset Management - one of the best & high-return real estate fund managers in asia (STC holds 20% stake)
5. Trading much below book value. (real book value is possibly much higher)
6. Improving earnings
7. Tin business improving
8. Offers a side-car investment vehicle to ride along with astute and well-connected folks like John Lim and Chew Gek Khim

Negatives
1. Recent earnings growth spurt may not be sustainable
2. Hospitality brands and business not inspiring. Can it become a Starwood or Accor?
3. ROE growth and free cash flows may not happen quickly.

What else can go wrong?

[cyclone]

Subscription Into savills Investment Management Japan Value Fund II, LP

The Straits Trading Company Limited announced that its subsidiary, Straits Real Estate Pte. Ltd., through its wholly-owned subsidiary, SRE Venture 7 Pte. Ltd ("SRE Venture 7"), has entered into a subscription agreement for the subscription  into Savills Investment Management Japan Value Fund II, LP. The Fund will be managed by Savills Investment Management Japan Value Fund II GP Pte. Ltd. as the General Partner.

The Fund is a limited partnership established in Singapore that focuses on acquiring office assets in the Greater Tokyo area and other cities in Japan.

SRE Venture 7, as one of the limited partners of the Fund, will commit up to JPY8.0 billion (approximately SGD97.4 million).

[cyclone]

Subscription for Units in Property Trust and Shares in Investment Manager

The Straits Trading Company Limited announced that its subsidiary, Straits Real Estate Pte. Ltd. ("SREPL"), through its indirect wholly-owned subsidiary, SRE Australia Industrial 1 Pte. Ltd., has entered into a unitholders’ deed and a unit sale and subscription agreement for the subscription of units representing 80% of the issued units in ILP No. 1 Trust for a total sum of AUD40,076,392 (approximately SGD39,324,000) to acquire a portfolio of logistics properties across Australia. The Trust, through its indirect wholly-owned subsidiaries, owns a distribution facility in Port Adelaide, South Australia. It will also be assigned a land sale contract for the acquisition of a freehold redevelopment property located in Kilkenny, South Australia.

SREPL has also, through its indirect subsidiary, SRE Australia 12 Pte. Ltd., entered into a shareholders’ deed to subscribe for shares representing 50% of the issued shares in ILP Managers Pty Ltd  for a total sum of AUD50 (approximately SGD491).

More details in http://infopub.sgx.com/FileOpen/Subscrip...eID=524813