Metro Holdings (Metro), through its wholly-owned subsidiary Metrobilt Construction, has entered into a unit purchase agreement with Perpetual Limited for the divestment of its 26% interest in the Boustead Industrial Fund (BIF). The sale comes ahead of Boustead Singapore’s proposed listing of UI Boustead REIT (UIB REIT).
BIF owns 15 industrial, business park, high-spec industrial and logistics properties across Singapore with a net lettable area of around 2.2 million square feet, which will be divested to UI Boustead REIT. The agreed property value relating to the 15 properties amounts to around $765.7 million.
Presently, Metrobilt Construction holds 26% of the units in the fund and 7.0% of the notes issued by Perpetual Limited, in its capacity as a trustee of BIF.
BIF is jointly held by Boustead, Metro and AP SG 21. Boustead holds a 25% interest in BIF through Boustead Projects, while AP SG 21 holds 49% interest.
With the divestment, BP-TN Pte Ltd, BP-SF Turbo LLP and BP-CA3 LLP have each entered into respective put and call option agreements for the sale of Rolls-Royce Solutions Asia at 10 Tukang Innovation Drive, 11 Seletar Aerospace Link and AUMOVIO Building Phase 3 at 84 Boon Keng Road.
BIF holds 49% of the shares in BP-TN Pte Ltd, and 49% of the interest in each of BP-SF Turbo LLP and BP-CA3 LLP.
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On completion of the divestment, 26% of the 7.0% notes subscribed by Metrobilt Construction will be fully redeemed.
The net proceeds that Metrobilt Construction will receive from the sale of its units, its share of the distribution and its share of the redemption, post-deduction of legal and professional fees and expenses is expected to be approximately $116.0 million.
The divestment is not expected to have a significant impact on either Metro Group’s consolidated net tangible assets per share or its consolidated earnings per share for the FY2026.
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Yip Hoong Mun, group CEO and executive director of Metro Holdings says: “The divestment of the BIF portfolio to UIB REIT will enable Metro to unlock value and recycle capital into strategic opportunities.”
As at 3.25 pm, shares in Metro Holdings are trading 2.5 cents higher at 56 cents.
