Acquisitions and disposals of assets :: Groupe Metro invests in high-quality industrial property via the Boustead Industrial Fund
METRO HOLDINGS LIMITED
(company registration number 197301792W)
GROUPE METRO INVESTS IN HIGH-END INDUSTRIAL REAL ESTATE VIA
BOUSTEAD INDUSTRIAL FUND
The board of directors of Metro Holdings Limited (“Metro“or the”Society“, together with its subsidiaries, the”Metro Group“) would like to announce the following:
As announced by the Company on December 31, 2020, Metro Group through its indirect wholly owned subsidiary, Metrobilt Construction Pte Ltd (“Métrobilt Construction“), deepens its presence in Singapore by investing in a quality portfolio of fourteen high-end industrial properties, business parks, industrial and logistics in Singapore by investing in Boustead Industrial Fund (“BIF“) by subscribing for 26% of the two Units (“Units“) and 7.0 percent. Bonds due 2031, for an investment amount of up to S $ 76.6 million.
BIF’s fund manager is Boustead Industrial Fund Management Pte. Ltd. (the “Director“), a wholly owned subsidiary of Boustead Projects Limited (“GLP“) and the trustee of BIF is Perpetual (Asia) Limited (the”Curator“). The sponsor of the BIF is BPL.
On October 22, 2021, the Trustee entered into a Sale and Purchase Agreement with the Seller, BP-Braddell LLP, a joint venture partnership between a subsidiary of BPL1 and an independent third party, to acquire a 100% leasehold interest in the property located at 351 Braddell Road, Singapore 579712 (the “Goods“), high quality industrial property via an asset deal (the”Investment“).
The investment will be financed by the issuance of shares in BIF, the issuance of 7.0 percent notes due 2031 (“Banknotes of the 001 series“) under a Singapore $ 1 billion note program (the”Program“) newly created by BIF on October 22, 2021, and the debts. The trustee is the issuer of the program. Metro Group has subscribed for 26% of the units and series 001 notes in BIF, for an investment amount of 17, 58 million Singaporean dollars.
With this acquisition, the total portfolio under BIF will be fifteen buildings, comprising six industrial buildings, one business park, five high-end industrial buildings and three logistics buildings (the “Wallet“) located in various parts of Singapore and close to transport nodes. The portfolio enjoys a high average occupancy rate of 97.2% with a weighted average lease term (“WALES“) of approximately 6.4 years and an average lease term of 32 years.
The investment of the Metro Group via BIF is part of the normal course of the investment and real estate development activities of the Metro Group.
The property, a high quality industrial property, is located at 351 Braddell Road, strategically located in the central region of Singapore, and within walking distance of Braddell MRT station. It obtained its Temporary Occupation Permit in March 2021 and has a residual land tenure of 27 years. The newly constructed 7 story multi-user smart industrial building with ancillary facilities has a net leasable area of 236,864 square feet. The building has major tenants such as NETs, Secretlab, Electrolux etc. The weighted average maturity of existing leases (“WALES“) is 4.1 years old.
1 For BPL announcements and information, please refer to the BPL website at www.bousteadprojects.com.
Metro Group’s consideration for the investment in BIF through the 26% subscription is S $ 3.28 million and 26% of the Series 001 notes amount to S $ 14.30 million , for a total of S $ 17.58 million. Consideration for the investment included the purchase price of the property, stamp duties and related acquisition costs and expenses and was established on the basis of a willing buyer willing to sell after taking into account, among other things, the expected net income to be derived from the property.
The counterpart of the Metro group for the investment in BIF will be financed from internal cash sources.
NTA / Financial effects
The investment of the Metro group via BIF is not expected to have a material effect on the consolidated net tangible assets per share and the consolidated earnings per share of the Metro group for the fiscal year ended March 31, 2022.
Interests of directors and controlling shareholders
To the knowledge of the Company, none of the Directors or controlling shareholders of the Company has any interest, direct or indirect, in the above matter other than through their participation in the Company.
By order of the board
Tan Ching Chek and Eve Chan Bee Leng
Joint company secretaries
22 October 2021
Metro Holdings Limited published this content on 22 October 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 22, 2021 10:03:35 AM UTC.