Straits Trading Building at Raffles Place sold for $450 million

The Straits Trading Company has agreed to sell its Raffles Place headquarters to the Sun Venture Group for $450 million. -- PHOTO: BUSINESS TIMES FILE
The Straits Trading Company has agreed to sell its Raffles Place headquarters to the Sun Venture Group for $450 million. -- PHOTO: BUSINESS TIMES FILE

SINGAPORE - THE Straits Trading Company has agreed to sell its Raffles Place headquarters to the Sun Venture Group for $450 million.

The 28-storey Straits Trading Building at 9 Battery Road has a distinctive trapezoidal shape that is designed to maximise the views.

Straits Trading Co said in a statement that the sale was in line with its strategy of redeploying capital from its portfolio of high-quality but low-yielding investment properties into potentially higher-return real estate opportunities.

The redeployment of the proceeds will also strengthen development of the group's real estate ecosystem, anchored by its 89.5 per cent interest in Straits Real Estate, its 20.1 per cent interest in ARA Asset Management and its 5.8 per cent aggregate interest in Suntec Reit, said the company.

Executive chairman Chew Gek Khim said the monetisation of the building was a significant step towards unlocking value from its property assets and transforming its real estate business into an engine of growth.

"In redeploying the proceeds, we will be able to pursue a wider spectrum of value-accretive real estate opportunities and also further the development of our real estate ecosystem," she said.

Straits Trading Co is expected to realise a capital gain of $39 million from the sale, based on its latest book value as at June 30.

Based on historical cost, the gain to the company would be $373 million.

Buyer Sun Venture is a Singapore-based property group that owns and manages commercial real estate, including an office building at 50 Scotts Road, four floors at Samsung Hub, Westgate Tower and Paya Lebar Square.

The transaction is expected to be completed by the end of the year.