For the six months to end-June, its 1HFY2022, Straits Trading Corp reported a 3.9 times increase in Ebitda to $729.1 million. Profit after tax and non-controlling interest (PATNCI) increased 5.5 times to $673 largely due to the net gain on disposal of the group’s stake in ARA Asset Management to ESR Group.
Following the merger between ARA and ESR for a consideration comprising shares and cash, Straits Trading recognised a gain of $1,076.5 million. Of this, $142.5 million was in cash, and the remaining monies were paid via 214.7 million ESR shares. Straits Trading said in a press release that the gain represented an 18.2% IRR or 3.7 times equity multiple over its original cost of investment in ARA.
During the half-year period, Straits Real Estate or SRE acquired two office buildings in Docklands, Melbourne, and four retail warehouse parks in the United Kingdom. SRE is also in the closing stages of acquiring a portfolio of office, industrial buildings and several plots of development land in Gloucester Business Park in Gloucestershire, England.