Straits Trading Building to be sold to Sun Venture Group

SGX-listed Straits Trading Company plans to sell its Straits Trading Building to Sun Venture Group for S$450 million.

In a filing to the Singapore Exchange on Friday (Sep 5), the company said the sale is in line with its strategy of redeploying its low-yielding investment properties into potentially higher return real estate opportunities.

Straits Trading is expected to realise an estimated capital gain of S$39 million from the sale based on the building’s latest book value.

The company’s executive chairman, Ms Chew Gek Khim, said: “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.”

Meanwhile, Sun Venture is a Singapore-based real estate developer and investor which currently owns and manages various commercial properties in the country. These include an office building at 50 Scotts Road, four floors at Samsung Hub, Westgate Tower and Paya Lebar Square.

Straits Trading said the transaction is expected to be completed by the end of 2014.

Source : Channel NewsAsia – 5 Sep 2014