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KUALA LUMPUR (April 10): Star Media Group Bhd (KL:STAR) said it has subscribed to A$35.5 million (RM99.4 million) worth of units in a private closed-end unit trust fund that focuses on Australian commercial office assets.
This is part of the group's efforts to diversify its revenue base and support sustainable long-term growth, the media group said in a bourse filing on Friday.
"The subscription provides the group with an alternative avenue to enhance its investment income, complementing the group’s existing placements in money market funds," Star Media said.
The group said its wholly-owned subsidiary, Star Publications (Singapore) Pte Ltd, entered into the subscription agreement with TrustCapital Advisors Investment Management Pte Ltd, the manager of TrustCapital Australian Office Fund No 3.
The fund, constituted in Singapore, seeks to generate returns from investments in office properties located in Sydney, Melbourne, Canberra, Brisbane, and Perth that are tenanted by quality corporate tenants and government tenants.
Star Media said the investment will be funded entirely through internally generated funds, adding that the group will form an investment committee to oversee the fund.
Star Media shares closed unchanged at 31 sen on Friday, valuing the group at RM229 million. In over a year, the stock is down by 12.4%.
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