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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.

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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.