Singapore’s Straits Trading Company has expanded its Australian property portfolio through a partnership with Adelaide-based Commercial & General to hold five logistics assets valued at AUD130.5m (€81m).
Straits Real Estate (SRE), a subsidiary of the listed investment company, will hold an 80% interest in an asset holding trust named ILP No.1 Trust. SRE will also hold a 50% interest in ILP Managers, a company that provides investment management services.
This marks the group’s first investment in an operating platform in Australia, underscoring its commitment to grow its Australian portfolio, Straits said.
In addition to its logistics property portfolio, the group also has two commercial assets in Australia in the central business districts in Sydney and Perth.
Desmond Tang, CEO of SRE, said: “With this venture, we are attracted to the strong and immediate cashflow, backed by good-credit tenants such as Coca-Cola Amatil and Incitec Pivot. It obviously helps that Australia is a vibrant and large market, offering tremendous potential for growth.
Tang said the group is constantly seeking out opportunities that will add depth and breadth to SRE’s business, and this certainly fits the bill.”
“We have a strong partner in Commercial & General and we plan to tap on our joint venture to ramp up our Australia strategy,” he said.
Stuart McCann, the head of JLL’s international capital for Australia acted as advisor on behalf of Commercial & General to establish the platform.
McCann said Commercial and General had retained development and management rights, and would jointly fund major development pipelines with Straits Real Estate into the future.