Straits Trading to invest in fund managed by Savills

THE Straits Trading Company will be investing in a fund managed by international property fund manager Savills Investment Management, via an indirect subsidiary.

Straits Trading announced on Tuesday that its subsidiary, Straits Real Estate Pte Ltd (SREPL), through its wholly-owned subsidiary, SRE Venture 7 Pte Ltd (SRE Venture 7), has agreed to subscribe for the Savills Investment Management Japan Value Fund II, LP.

SRE Venture 7 will commit up to 8.0 billion yen (S$97.4 million).  

The fund will be managed by Savills Investment Management Japan Value Fund II GP,  a wholly-owned subsidiary of Savills Investment Management Overseas Holdings which is, in turn, a subsidiary of Savills Investment Management.  

The fund is a limited partnership established in Singapore that focuses on acquiring office assets in the Greater Tokyo area and other cities in Japan, Straits Trading's announcement said.

Straits Trading added that this subscription is in line with its previously articulated strategy of redeploying capital from its existing property portfolio of high-quality, but low-yielding investment properties into potentially higher return real estate opportunities via SREPL.