In addition to owning a prime investment property portfolio, Straits Trading's real estate interests consist of an 89.5% stake in Straits Real Estate Pte. Ltd. and a 20.1% stake in ARA Asset Management Limited.
STRAITS REAL ESTATE PTE. LTD. ("SRE")
Straits Real Estate Pte. Ltd. is a real estate investment vehicle, 89.5% owned by Straits Trading, that was incorporated in November 2013 with an aggregate initial capital of S$200M and a capital commitment of up to an aggregate amount of S$950 million. Its business will include providing seed capital or sponsor capital commitments to support new product launches by ARA. In May 2014, SRE, through its wholly-owned subsidiary, made a capital commitment of US$80 million towards ARA's Summit Development Fund I L.P. as the lead and anchor investor. The fund is mandated to invest in real estate development projects and projects with value enhancement potential in Australia and South East Asia.
For more information on SRE, please visit www.straitsrealestate.com
SRE CAPITAL PTE. LTD. ("SRE CAPITAL")
SRE Capital Pte. Ltd. ("SRE Capital") is a Singapore-based asset management company that specialises in investing in publicly listed real estate and infrastructure related securities within the Asia Pacific region. SRE Capital was incorporated in February 2015 and received its Capital Services Market Licence from the Monetary Authority of Singapore in March 2015.
With the strong commitment and support of its parent company, Straits Real Estate Pte. Ltd., SRE Capital launched its first fund on 1 April 2015 and is also managing a separate account mandate.
The SRE Asian Asset Income Fund ("SAAIF") was launched on 1 April 2015 with an initial seed capital commitment of SGD130 million from Straits Real Estate. SAAIF is a dividend paying income fund that invests in a diversified portfolio of real estate related equities listed in Asia Pacific. The fund predominantly invests in real estate investment trusts ("REITs") and has a limited allocation to infrastructure securities.
For more information on SRE Capital Pte. Ltd., please visit www.srecapital.com
ARA ASSET MANAGEMENT LIMITED ("ARA")
In January 2014, Straits Trading acquired a 20.1% stake in ARA Asset Management Limited ("ARA") in November 2013 from Cheung Kong Holdings and Mr John Lim, CEO and founder of ARA, and became its largest shareholder. Established in 2002 and listed on the Singapore Exchange in 2007, ARA is one of the largest real estate fund managers in the region with total assets under management of S$25.4 billion (as at 31 March 2014). It manages listed REITs and private real estate funds in the Asia Pacific region and also provides real estate management services. Straits Trading's existing investment property portfolio will also be managed by ARA as a separate account.
With ARA's privatisation completed on 12 April 2017, Straits Trading will be the only publicly-listed entity in Singapore to hold a significant stake in the privatised ARA.
For more information on ARA Asset Management Limited, please visit www.ara-asia.com
AN INTEGRATED REAL ESTATE PLATFORM
Straits Trading's acquisition of the ARA stake and the formation of the SRE co-investment vehicle, coupled with its existing property portfolio, has enabled it to create an integrated ecosystem to tap on more lucrative growth opportunities in the real estate sector. The investment property portfolio will be gradually divested and the proceeds redeployed into SRE. By leveraging on ARA's well-established fund management franchise to complement the real estate investment expertise of SRE, the Straits Trading will now have access to a greater diversity of investment opportunities through this real estate ecosystem and transform its real estate business into a dynamic engine of growth.