Straits Trading sets up unit to trade real estate securities

Singapore

THE Straits Trading Company's real estate investment arm has set up a new subsidiary, SRE Capital, to form and manage funds invested in Reits, asset-backed trusts and corporate securities in the real estate and infrastructure sectors in the Asia-Pacific.

For a start, SRE Capital will manage a dividend-paying fund that trade real estate securities listed in the region, mainly Reits and to a lesser extent, infrastructure securities.

This move is in line with Straits Trading's plan to set up "Blackstone-like" funds as growth engines as it seeks to become a capital allocator in the real estate space.

Its real estate investment arm, Straits Real Estate Pte Ltd (SRE), has committed an initial seed capital of S$130 million to the fund, with a plan to raise capital from accredited investors including high net worth individuals, institutions and family offices globally. This open-ended fund, know…