KUALA LUMPUR (April 10): Star Media Group Bhd has taken a strategic step to diversify its income streams by subscribing A$35.5 million (approximately RM99.4 million) into a private closed-end unit trust fund focused on commercial office properties in Australia.
The investment is part of the group’s broader strategy to strengthen long-term financial sustainability by generating alternative income beyond its core media operations. According to its filing, the move is expected to enhance investment returns while complementing existing placements in money market funds.
The subscription was made through its wholly-owned subsidiary, Star Publications (Singapore) Pte Ltd, which entered into an agreement with TrustCapital Advisors Investment Management Pte Ltd, the manager of the TrustCapital Australian Office Fund No. 3.
The fund, established in Singapore, targets office assets across major Australian cities including Sydney, Melbourne, Canberra, Brisbane, and Perth. These assets are primarily leased to established corporate and government tenants, providing a stable and potentially recurring income stream.
Importantly, the investment will be fully funded through internally generated funds, reflecting the group’s financial capacity and disciplined capital management. To ensure proper oversight, Star Media will also establish an internal investment committee to monitor the fund’s performance and strategic direction.
Despite this proactive move, the company’s share price remained unchanged at 31 sen at the close of trading, giving it a market capitalisation of RM229 million. Over the past year, the stock has declined by approximately 12.4%, underscoring the importance of diversification efforts like this.
This development illustrates how traditional media companies like Star Media are increasingly diversifying into property-backed investment funds to secure more stable and recurring income streams. By investing in commercial office assets with strong tenant profiles, the group reduces reliance on its core business, which can be more cyclical. It also highlights the growing appeal of international real estate investments, particularly in mature markets like Australia, where demand for quality office space from corporate and government tenants can provide consistent returns.
Malaysia