Straits Trading to acquire property in Victoria, Australia for A$24m

THE Straits Trading Company announced after trading hours on Wednesday that the Trust, an indirect 80 per cent-owned subsidiary of Straits Real Estate, is acquiring a mixed-use office and industrial property located in Mulgrave, Victoria for A$24 million (S$22.3 million).

The property is a multi-tenanted mixed-use office and industrial property with a total net lettable area of 12,157 square metres located approximately 21 kilometres south-east of the Melbourne Central Business District.

The company had previously announced the acquisition of a portfolio of five industrial properties across Australia, as well as a 37,970 sq m parcel of land for mixed-use office and warehouse facility development in South Australia. The proposed acquisition is an expansion of the portfolio.

The consideration will be satisfied by internal funds and bank borrowings.

An independent valuation of the property conducted by Jones Lang Lasalle concluded a value of A$24 million for the property as at Sept 4, 2019.

The acquisition is not expected to have a material impact on the earnings per share and net tangible asset per share of the group for the financial year ending Dec 31, 2019.