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Boustead inks contract to develop new production and warehouse facility

BOUSTEAD Development Partnership (BDP) has secured a new development contract for an integrated production and warehouse facility in Singapore, to be leased on a long-term basis to Amcor Flexibles Singapore, Boustead Projects announced on Wednesday morning.

BDP is a co-investment partnership between Boustead Projects and the Abu Dhabi Investment Council.

Meanwhile, Amcor Flexibles Singapore is a unit of Amcor Limited, which is listed on the Australian stock exchange. The group produces packaging for a variety of consumer products including F&B (food and beverage) and pharmaceutical items, among others. 

The new Amcor facility will have a gross floor area (GFA) of about 6,922 square metres, and is expected to be completed by the third quarter of 2019. Amcor Limited will carry out the design development and manufacturing of packaging for medical devices in the new facility. 

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Separately, Boustead Projects' wholly owned subsidiary, Boustead Projects E&C, has been appointed a design-and-build partner in this project. 

While the value of the new contract was not disclosed, the company said the deal raises Boustead Projects Group's order book backlog to S$242 million. This amount includes unrecognised project revenue at the end of March, plus the total value of new orders secured since then, the group said. 

The addition of the Amcor facility also brings Boustead Projects' leasehold portfolio to 20 properties with over 275,000 square metres in expected GFA.

The company added that the new contract is not expected to have a material impact on the profitability, earnings per share or net tangible asset value per share of the Boustead Projects Group in the current financial year ending March 31, 2019.

Boustead Projects is an industrial real estate solutions provider, and a 53 per cent-owned subsidiary of fellow mainboard-listee Boustead Singapore. 

As at 11.55am on Wednesday, shares in Boustead Projects were down 0.6 per cent to 90 Singapore cents, while shares in Boustead Singapore fell 2.4 per cent to 80.5 Singapore cents.