Straits Trading Company

[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

Straits Trading Boosts Australian Presence with New Joint Venture; Expands Portfolio of Logistics Assets

ILP No. 1 Trust, which already owns 2 assets in South Australia ; will now acquire 2 other assets in the same state, and another in Victoria. The combined value of the 5 initial properties is AUD130.5 million (approximately SGD128.9 million)

Collectively, the Group now owns five logistics assets in Australia amounting to an aggregate NLA of more than 93,000 sqm, as well as total development land area of 20.2 hectares earmarked for logistics uses with permissible NLA of more than 90,000 sqm. The initial WALE of the portfolio exceeds 9 years.

More details in :
1. http://infopub.sgx.com/FileOpen/Proposed...eID=525604
2. http://infopub.sgx.com/FileOpen/MediaRel...eID=525605

[cyclone]

Straits Real Estate Stays Bullish on Logistics Sector; Enters New Market of South Korea and Expands Australian Portfolio

* Enters a new strategic partnership with IGIS Asset Management in South Korea to develop a portfolio of modern logistics facilities
* Expands its portfolio in Australia via a new build-to-suit development project under its existing joint venture with Commercial & General
* Combined initial capital commitment of SGD220 million in the logistics sector provides a foundation to develop a scalable logistics business
* Actively looking to allocate more capital to this sector across other Asian gateway markets

More details in :
1. https://links.sgx.com/FileOpen/Announcem...eID=564112
2. https://links.sgx.com/FileOpen/Media%20R...eID=564113

[cyclone]

Straits Real Estate to Divest Four Osaka Properties for JPY 8.35 Billion
* Portfolio sale is expected to crystalise gain of JPY 890 million (SGD 11.1 million)
* To capitalise on sustained cap rate compression in the Osaka market and potentially recycling capital into other real estate assets in Japan or other markets

The Straits Trading Company Limited today announced that its subsidiary, Straits Real Estate Pte. Ltd. (“SRE”), has entered into conditional Sale and Purchase Agreements to divest four residential properties located in Central Osaka, Japan for JPY 8.25 billion (approximately SGD103.21 million) in cash.

As at 30 June 2019, the properties were valued at JPY 7.82 billion in aggregate based on independent valuations. SRE had acquired these properties for approximately JPY 7.36 billion in aggregate in 2016 and 2017.

More details in :
1. https://links.sgx.com/FileOpen/Announcem...eID=590067
2. https://links.sgx.com/FileOpen/Media%20R...eID=590068

[cyclone]

Proposed Acquisition of Retail Mall in Pudong, China

The Straits Trading Company Limited announced that its subsidiary, Straits Real Estate Pte. Ltd. ("SREPL"), has through its wholly-owned subsidiary, SRE Venture 16 Pte. Ltd. ("SREV16"), entered into an arrangement with an entity owned by a fund managed by a subsidiary of ARA Asset Management Limited ("ARA") and ICBC International Investment Management Limited ("ICBCI") to form a joint venture (the "Purchaser") to acquire a retail mall in Shanghai, People’s Republic of China (the “Property”) for a total cash consideration of approximately CNY2.42 billion (approximately SGD469.5 million) via the acquisition of 100% of the shares of the project company that owns the Property.

SREV16 has committed to taking up a 37.7% stake in the issued share capital of the Purchaser, with ARA and ICBCI committing to the remainder. The Consideration will be funded by a combination of shareholder capital and bank borrowings. SREV16’s capital contribution to the Consideration will be approximately CNY441.9 million (approximately SGD85.7 million), which will be funded by internal resources.

The Property, located in the Sanlin District of Pudong, Shanghai, People’s Republic of China, has approximately 83,074 square meters of gross floor area. The neighbourhood mall is strategically located within a strong population catchment of over 400,000 residents within a three kilometre radius and is easily accessible by various transportation modes. Opened in the fourth quarter of 2018, the mall is currently 91.3% occupied and offers an opportunity for the Purchaser to upgrade the tenant profile and capitalise on positive rental reversions.

More details in https://links.sgx.com/FileOpen/Proposed%...eID=590804

[touzi]

Counting on ARA re-listing? That looks like the only near term catalyst.

   

[cyclone]

STRAITS TRADING ACQUIRES JL FAMILY OFFICE’S STAKE IN STRAITS REAL ESTATE FOR $105 MILLION IN CASH
* Straits Trading to acquire JL Family Office’s stake in Straits Real Estate, as JL Family Office seeks to divest its stake at end of a successful investment cycle
* Post-transaction, Straits Real Estate will become a fully owned subsidiary of Straits Trading
* Both parties will continue to collaborate on future projects

SINGAPORE – 5 April 2021 – The Straits Trading Company Limited today announced that its wholly-owned subsidiary, STC Capital Pte Ltd and JL Equity II Limited, a unit of the JL Family Office ("JLFO"), has entered into a Share Sale and Purchase Agreement for the proposed acquisition of JLFO’s 10.5% stake in Straits Real Estate Pte. Ltd. ("SRE") for an aggregate consideration of $105 million. The acquisition comes as JLFO seeks to divest its stake in SRE at the end of its successful investment cycle.

Post-transaction, SRE, will become a fully owned subsidiary of the Group. The completion of the transaction is scheduled on 9 April 2021 and it will be fully funded by the Group’s internal cash resources.

More details in :
1. https://links.sgx.com/1.0.0/corporate-an...pr2021.pdf
2. https://links.sgx.com/1.0.0/corporate-an...pr2021.pdf

[¯|_(ツ)_/¯]

Straits Trading Company
Malaysia Smelting
The temporary suspension of operations pursuant to the MCO 3.0 is expected to have an impact on the Company's operations and financial performance for the financial year ending 31 Dec 2021.
MSC has also issued a notice of force majeure  to its customers as the disruption in production will lead to a slowdown in the Company's scheduled delivery of tin metal.
Pursuant to this, all contractual obligations are immediately suspended.

https://links.sgx.com/FileOpen/Announcem...eID=670773

Stay home and stay safe, everyone.

[touzi]

https://www.forbes.com/sites/jonathanbur...orbes+Asia

Ms Chew is finally getting some recognition from the market.

[weijian]

In general, it is the exception rather than the norm, that such exceptional gains are shared with everyone including OPMIs. The alternative would be Madam Chew liquidates STC's ESR stake and the cash would still be "stuck" at company level. Since this is an investment holding company, it probably make it easier for the Manager to reinvest most of the cash.

Bayes' theorem states that one needs to update their prior odds whenever there is new evidence. IMO, this is great evidence of the degree of "OPMI-friendliness". From Specuvestor's ABS structure, I would say the "structure" portion looks really good now.

STRAITS TRADING DECLARES SPECIAL DIVIDEND VIA DISTRIBUTION IN SPECIE

• With the divestment of ARA, Straits Trading continues its track record of rewarding shareholders with a special dividend whenever substantial shareholder value is unlocked
• Shareholders can opt for 145 ESR shares or 180 Straits Trading sharesfor every 1,000 Straits Trading shares owned
• The equivalent value is worth approximately S$0.50 per share

https://links.sgx.com/FileOpen/Straits%2...eID=728571

[ghchua]

Hi weijian,

I think if you look back, STC does have a track record of giving out special dividends since Tecity took control of the company in 2008. There were instances of big dividend payouts in 2008, 2009 and 2013. Some of the bigger divestment include sale of its stake in WBL, Straits Trading building etc.

I guess their track record speaks for itself.