Boustead Projects expands Vietnam presence

MAINBOARD-LISTED Boustead Projects Limited announced on Friday that it is expanding its presence in Vietnam through its wholly-owned indirect subsidiary.

Boustead Projects Land (Vietnam) Co Ltd (BPLV) is subleasing land from Thao Dien Real Estate Corporation (Thao Dien) for the development of industrial leasehold properties in Vietnam.

BPLV will sublease land from Thao Dien at Nhon Trach 2 - Nhon Phu Industrial Park in Dong Nai province.

The land will be taken over in two phases comprising 60,000 square metres in the first phase and 126,903 square metres in the second phase for a total area of 186,903 square metres for approximately 40 years up until February 2057.

Boustead Projects said that BPLV is entitled to further sublet the land or parts of the land and intends to develop industrial leasehold properties for multinational corporations.

The rent and infrastructure maintenance fees for the land will be payable by BPLV at pre-set intervals, with the ability to convert to a one-off payment for the land on a pre-set calculation from the fourth year onwards.

The land sublease contract is not expected to have any material impact on Boustead Projects Group's earnings per share or net tangible assets per share for the financial year ending Mar 31, 2018.

Boustead Projects closed 1.5 Singapore cents lower at S$0.87 on Friday.