Straits Trading launches investment product offering fractionalised exposure to Chatsworth Park GCB

INVESTMENT company Straits Trading has launched a new product that provides fractionalised exposure to real estate as it seeks to improve accessibility to properties that have high barriers to entry.

The mainboard listed company said on Sunday (Sep 10) that it has launched two new property investment products under its Fractionalised Investment Real estate-Straits Trading (FIR-ST) programme.

The underlying properties being offered are a freehold Good Class Bungalow (GCB) at 8A Cable Road, Chatsworth Park, and a 999-year leasehold condominium unit in Duchess Residences at Bukit Timah.

Under the FIR-ST programme, investors will gain exposure to the residential properties at a fraction of their value through preference shares. The underlying properties will continue to be owned by the existing owners during the investment period, Straits Trading said.

The minimum investment amount into the Duchess Residences condominium is S$200,000, while investors who want to invest in the GCB will need to set aside a minimum sum of S$500,000.

Straits Trading noted that preference shareholders “may receive dividends, which will be paid on a semi-annual basis”.

It added that “preference shareholders may enjoy returns which reflect a share in the potential appreciation in value of the underlying property via a special payout” at the end of the expected investment period of five years.

Straits Trading said the dividends and special payout are non-guaranteed and subject to performance.

Both investments are offered to Straits Trading Shareholders’ Club registrants only. Shareholders who hold at least 100 shares of Straits Trading can register with the shareholders’ club.

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Straits Trading said it worked with advisers including Dentons Rodyk & Davidson, Deloitte, EY, Cushman & Wakefield, and Knight Frank to come up with the investment products.

Shares of Straits Trading fell 0.5 per cent on Friday to close at S$1.97.