The Straits Trading Company, via a real estate joint venture, has sold a logistics facility in Korea for KRW 432 billion, or $377.6 million.
Straits Trading holds an effective interest of 47.3% in the property, the Arenas Yeongjong Logistics Center, at Incheon.
Straits Trading says the sale is part of its strategy of capital recycling and it expects to book net proceeds of around KRW 95.4 billion, or $83.4 million.
On a project-level basis, the investment delivered an internal rate of return of more than 20% and an equity multiple of over 3 times in Singapore dollar terms.
“This transaction underscores our disciplined approach to capital allocation and our commitment to managing investments through the full lifecycle," says Chew Gek Khim, Straits Trading's executive chairman.
"With this divestment, we are realising the value of a matured asset and reallocating capital towards opportunities that support our long-term portfolio strategy,” she adds.
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Straits Trading shares closed at $1.70 on Jan 23. It is up 15.65% in the past year.
