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Straits Trading unit to invest in Japan real estate fund

the Straits Trading Company announced on Thursday that it will be investing in a Japanese real estate fund to be managed by Savills IM Japan Residential Fund GP Pte Ltd.

Straits Trading will participate in the fund, Savills IM Japan Residential Fund, via its indirect subsidiary, SRE Japan 11 Pte Ltd.

The fund is a limited partnership established in Singapore that will acquire residential properties located in the Greater Tokyo area and other key markets in Japan.

Straits Trading said that this investment is in line with its strategy, which it has stated before, of "redeploying capital from its existing property portfolio of high-quality but low-yielding investment properties into potentially higher return real estate opportunities".

SRE Japan 11, as a limited partner of the fund, will commit nine billion yen (S$106.5 million).

Straits Trading added that this transaction is not expected to have a material impact on the earnings per share and net tangible asset per share of the group for the current financial year ending Dec 31, 2018, nor will it have any impact on the issued share capital of the company.