Metro Holdings Announces Divestment of 26% Stake in Boustead Industrial Fund
Metro Holdings to Divest 26% Stake in Boustead Industrial Fund Portfolio Worth S\$765.7 Million
Key Highlights
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Divestment Announcement: Metro Holdings Limited, through its indirect wholly-owned subsidiary, Metrobilt Construction Pte Ltd, will divest its entire 26% stake in Boustead Industrial Fund (BIF), including related notes, to Perpetual (Asia) Limited (as trustee of the soon-to-be-listed UI Boustead REIT).
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Portfolio Details: The divestment involves a portfolio of 15 industrial, business park, high-spec industrial, and logistics properties, with an aggregate agreed property value of approximately S\$765.7 million.
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Strategic Rationale: The divestment enables Metro Holdings to unlock and realize the value of its investment, recycle capital for strategic opportunities, and was agreed upon after arm’s length negotiations at market value.
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Expected Proceeds: Metro Holdings expects to receive approximately S\$116.0 million in net proceeds from the sale of units, redemption of notes, and its share of distribution, after deducting transaction expenses.
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Completion Timeline: The divestment is set to complete upon the listing of UI Boustead REIT on the Singapore Exchange, anticipated by March 2026.
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Financial Impact: The divestment is not expected to have a significant impact on the Group’s consolidated net tangible assets per share or earnings per share for FY2026.
Detailed Transaction Overview
Metro Holdings, through Metrobilt Construction, currently holds 26% of the units in BIF and 26% of S\$341 million in 7.0% Notes due 2031 issued by Perpetual (Asia) Limited. The BIF portfolio comprises 15 properties, including 12 properties directly held under the Unit Purchase Agreement (UPA) and 3 properties under Put and Call Option Agreements (PCOAs), with BIF holding a 49% interest in each of these three entities.
Properties Involved
| Property Name |
Agreed Value (S\$ million) |
| 12 Changi North Way |
66.0 |
| 16 Changi North Way |
36.8 |
| 10 Changi North Way |
36.0 |
| GSK Asia House |
128.0 |
| 351 Braddell Road |
131.0 |
| 26 Tai Seng Street |
105.0 |
| AUMOVIO Building Phase 1 and 2 |
72.0 |
| Edward Boustead Centre |
29.5 |
| Jabil Circuit |
48.0 |
| 85 Tuas South Avenue 1 |
25.7 |
| 10 Seletar Aerospace Heights |
24.4 |
| 26 Changi North Rise |
19.7 |
| AUMOVIO Building Phase 3 (49% interest) |
12.5 |
| Rolls-Royce Solutions Asia (49% interest) |
25.3 |
| 11 Seletar Aerospace Link (49% interest) |
5.8 |
Total Portfolio Value: S\$765.7 million
Important Shareholder Information
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Completion Condition: The divestment is contingent upon the successful listing of UI Boustead REIT on SGX, expected by March 2026. Any delay or failure in the listing could impact the completion of this divestment.
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Price Sensitive Information: The realization of approximately S\$116.0 million in cash proceeds will provide Metro Holdings with increased liquidity and the ability to pursue new investments, potentially impacting future earnings and strategic direction.
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Cautionary Note: There is no certainty at this stage that the divestment will complete or that no changes will be made to the terms. Shareholders are advised to monitor further announcements closely.
Financial Effects
The divestment is not expected to have a material impact on Metro Holdings’ consolidated net tangible assets per share or consolidated earnings per share for the financial year ending 2026.
Conflicts of Interest
The company has confirmed that, to the best of its knowledge, none of the directors or controlling shareholders has any interest, direct or indirect, in the transaction, aside from their shareholdings in the company.
Conclusion
This divestment is a significant transaction for Metro Holdings, as it allows the Group to unlock the value of a sizable real estate portfolio, recycle capital, and position for new opportunities. The transaction could be a meaningful driver for the company’s capital allocation strategies and future growth, and thus, is a potentially price-moving event for Metro Holdings’ shares.
Disclaimer
This article is for information purposes only and does not constitute financial advice. Investors should exercise caution, monitor official announcements from Metro Holdings, and consult with qualified financial or legal advisors before making investment decisions.
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