The Straits Trading Co., via an indirect subsidiary, has entered a subscription agreement to invest up to 60 million British pounds, or around S$110 million, into Savills IM UK Value Boxes Fund FCP-RAIF, the company said in a filing to SGX Tuesday.
Savills IM UK Value Boxes Fund FCP-RAIF, will be managed by Savills Investment Management (Luxembourg) S.À R.L., the filing said.
The fund, a closed-end common fund – reserved alternative investment fund established in Luxembourg, focuses on acquiring convenience-led discount retail park assets in the U.K., the filing said, adding Savills Investment Management’s team has an established track record of investing in and managing U.K. retail park assets.
The investment will be made via SRE Venture 18, a wholly owned subsidiary of Straits Real Estate (SREPL), which is a subsidiary of Straits Trading, the company said.
“The company has previously articulated to shareholders its 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. The subscription is in line with this stated strategy,” Straits Trading said in the statement.