UI Boustead REIT’s preliminary prospectus is likely to be lodged on Feb 26, following Boustead Singapore’s EGM on Feb 25. UI Boustead REIT’s IPO portfolio is likely to comprise 23 properties of which 21 are in Singapore and two in Japan. Total gross floor area is estimated at 5.9 million sq ft with 5.3 million sq ft of net lettable area.
According to Boustead’s circular, the agreed property value of $1,904.2 million as at Sept 30, 2025, is on a 100.0% basis.
The agreed property value of excluding Japan is $1,355.7 million on a 100% basis.
The total transaction price payable by UI Boustead REIT is $1,122 million because it represents the equity component of this amount raised through the IPO proceeds with the balance being effectively financed by debt, according to answers to shareholders by Boustead posted on SGXnet.
All existing equity partners in the 23 properties intend to sell 100.0% of their economic interests in the initial portfolio to the REIT. For instance, Metro has announced it will be divesting its 26% stake in Boustead Industrial Fund which owns 15 of the 23 properties in UI Boustead REIT.
According to the Q&A posted on the SGXnet, Boustead has said that most of the divestment proceeds will be reinvested to subscribe for units in UI Boustead REIT.
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“With the remainder of the proceeds, the board will consider a payment of a special dividend, although the quantum has not been decided at this point in time,” the company says.
Boustead adds that it has decided to subscribe for units in UI Boustead REIT as the initial DPU yield of the units is expected to be attractive and the investment in the units may produce further upside for Boustead's shareholders.
"The divestment is not a one-time cash-out exercise for the company. Rather, the REIT will continue to be a strategically important vehicle for the company in terms of potential co-investments or potential acquisition of the company’s industrial investments," Boustead says.
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The current rents of the properties are below market rents with rental upside. According to market observers, business parks have a potential 8% to 16% upside, hi-spec industrial 1% to 13% and general industrial 7%.
Projected DPU yields range from 6.5%-6.8% in FY2026 to 7%-7.3% in FY2027, the market observers said.
