Boustead Singapore will spin off its real estate solutions business by distributing up to 49 percent of the issued share capital of Boustead Projects Pte Ltd, according to the company’s filing to the local stock market.
The shares will be listed on the Main Board of the Singapore Exchange Securities Trading Ltd (SGX-ST). However, the parent company will retain the 51 percent stake in its real estate solutions arm, which will be renamed as Boustead Projects Ltd.
Following the completion of the restructuring exercise, Boustead Projects and its subsidiaries (BP Group) will continue to hold 14 wholly-owned properties with a combined book value of $162.5 million as of September 2014, while their estimated market value stands at $367.5 million.
At the same time, BP Group will own equity interests in the following partly-owned property investments: a 50 percent stake in BP-Ubi Development Pte Ltd which owns an industrial property located at 82 Ubi Avenue 4; a 35 percent interest in THAB Development Sdn Bhd which holds six plots of vacant industrial land in Iskandar; an effective interest of four percent in the first phase of the Beijing Tongzhou Integrated project; and finally a 5.5 percent stake in commercial property TripleOne Somerset.
Notably, BP Group has three core businesses, namely real estate investments, development of industrial properties for lease or sale, along with design and construction of industrial and commercial facilities tailored to a client’s needs.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
