Commercial & General and Straits Real Estate launch new logistics partnership

Featured — 20 September 2018

Commercial & General has teamed up with leading Singapore-based investment company, Straits Real Estate Pte. Ltd. (a wholly owned subsidiary of SGX-listed The Straits Trading Company Limited SGX:S20) to launch a new Australian logistics fund.

The Fund has been seeded with several of Commercial & General’s existing assets including Coca-Cola’s SA/NT Distribution Centre and a recently completed development for Incitec Pivot. The initial WALE of the portfolio exceeds 9 years.

Commercial & General CEO Trevor Cooke said the partnership with Straits Real Estate was another important milestone in the company’s continued growth.

“We have put a lot of work into establishing a deep pipeline of development opportunities across the Australian logistics space and we are proud to have the opportunity to deliver that with an organisation the calibre of Straits Real Estate.

Straits Real Estate is the real estate investment arm of The Straits Trading Company Limited and the John Lim Family Office, the investment holding group of companies founded by Mr John Lim, Group CEO of ARA Asset Management Limited. This partnership is Straits Real Estate’s first push into the Australian logistics sector and expands on the company’s footprint in the country.

The joint venture includes a new investment manager led by Commercial & General’s Mark Brammy who will be responsible for acquisitions, development, management and asset management for the Fund’s existing and pipeline assets.

“Target markets include South Australia, Victoria and Queensland given the underlining prime yields and fundamental economic drivers of this sector in these markets. Existing tenant relationships within the seed asset portfolio also provide enhanced exposure into these target markets nationally”, Mr Brammy said.

Mr Desmond Tang, CEO of Straits Real Estate, 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. We are 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. With the team’s experience and familiarity with the market, we believe we have an excellent platform to tap into more opportunities in the Australian logistics sector.” Mr Tang added.


About The Straits Trading Company Limited
Incorporated in 1887, The Straits Trading Company Limited is an investment company with stakes in real estate, hospitality, resources and investments that span the Asia Pacific region. It owns a 89.5% stake in Straits Real Estate, a co-investment vehicle that seeks out real estate related investments & opportunities globally. It also owns a 20.95% stake in ARA Asset Management Limited, one of the largest real estate fund managers in the region, and has a 30% interest in Far East Hospitality Holdings, an established international hospitality owner and operator. Straits Trading also engages in tin mining and smelting through its 54.8%-owned subsidiary, Malaysia Smelting Corporation Berhad that is dual listed on Bursa Malaysia and the SGX-ST.


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