Boustead Singapore Limited Announces Framework for Major Fund Asset Transaction and IPO Update

Key Highlights of the Announcement

• Boustead Singapore Limited (SGX:F9D) has disclosed a potential transaction involving Boustead Industrial Fund (BIF), in which it holds 25% of the units via Boustead Projects Limited.
• Perpetual (Asia) Limited, as trustee of BIF, has entered a framework agreement with Jumbo Group of Restaurants Pte. Ltd. (JGOR), a subsidiary of Jumbo Group Limited.
• The agreement concerns a potential future investment in 26 Tai Seng Street, Singapore, a property currently owned by BIF.
• A special purpose vehicle (SPV) will be set up, with JGOR holding 30% and BIF Trustee holding 70%. The SPV aims to acquire 26 Tai Seng Street after its capitalisation.
• The sale of 26 Tai Seng Street is subject to multiple regulatory approvals and the expiry of an assignment prohibition period imposed by JTC Corporation, which ends in 2033.
• The BIF Trustee will get an option to sell, and the SPV an option to buy, the leasehold interest in the property once the prohibition period ends.
• This framework agreement is linked to the proposed IPO and SGX listing of UI Boustead REIT. Should UI Boustead REIT acquire all BIF units as part of the IPO, it will assume BIF’s position under the framework agreement.

Important Shareholder Information & Price Sensitive Issues

• Potential for Share Price Movement: This announcement is price sensitive because it involves a material transaction for Boustead Singapore Limited and its related entities, including the potential divestment of a major property asset and an upcoming IPO.
• The IPO and REIT listing are not guaranteed: The company clarifies that the IPO and listing depend on market conditions, commercial negotiations, regulatory approvals, and agreement from other property investors. These processes are ongoing and may affect the company’s valuation, future earnings, and investor sentiment.
• There is no certainty or imminence about the IPO and listing of UI Boustead REIT, making this a speculative but potentially significant development.
• Shareholders and investors are explicitly cautioned to exercise prudence in trading Boustead shares due to the uncertainty and complexity of these transactions. Professional advice is recommended if unclear about the course of action.
• The company commits to making further announcements on material developments as required by SGX-ST rules.

About Boustead Singapore Limited

Boustead Singapore Limited, established in 1828, is Singapore’s oldest continuous business organisation and a progressive global Infrastructure-Related Engineering and Technology Group. Boustead focuses on niche engineering and real estate solutions, with divisions in energy infrastructure, eco-sustainable developments, geospatial technology, and healthcare. With projects in 95 countries and numerous awards, Boustead is a notable player in Singapore’s corporate landscape.

For investor and media enquiries, contact Mr Dominic Seow, Senior Manager, Corporate Marketing & Investor Relations, at [email protected] or +65 6747 0016 / +65 6709 8111.

Potential Impact for Investors

• The possible sale of 26 Tai Seng Street and related transactions could unlock significant value for Boustead Singapore Limited, depending on the final terms and market response.
• The linkage to the proposed IPO of UI Boustead REIT adds another layer of potential upside, but is subject to material risks and uncertainties.
• Investors should closely monitor further company announcements as developments may have direct implications on Boustead’s share price and strategic direction.

Disclaimer

This article is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. The information is based on company announcements and is subject to change as further details emerge. Investors should consult professional advisers before making investment decisions. Boustead Singapore Limited’s proposed transactions and IPO are subject to regulatory, market, and operational risks and may not proceed as described.

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