Boustead Projects to acquire 49% stake in Vietnam industrial properties for 158.8b dong

Michelle Zhu

Published Mon, Feb 1, 2021 · 08:50 AM

BOUSTEAD Projects has agreed to acquire a 49 per cent stake in the sole owner and developer of two industrial land lots in Vietnam for 158.8 billion dong (S$9.2 million).

The properties are located within the Yen Phong Industrial Zone in Dung Liet Commune, Yen Phong District, Bac Ninh Province, Vietnam.

Both are well connected to civil infrastructure and enjoy good connectivity to the Noi Bai International Airport and major ports in Hanoi, said the real estate player in a bourse filing on Monday.

One land lot comprises 36,000 square metres (sq m) in land area and an aggregate net leasable area (NLA) of over 21,000 sq m across six ready-built factories, all of which are 100 per cent leased. It has been granted a lease of about 47 years and 11 months from Dec 4, 2018.

The other land lot spans a land area of 60,000 sq m with an aggregate NLA of 37,000 sq m across 10 ready-built factories, all also 100 per cent leased. It has been granted a lease of about 47 years and four months from July 15, 2019.

In its filing, Boustead said its proposed acquisition will be funded with existing cash resources, and comes in line with the group's existing strategies of growing its income-yielding leasehold portfolio and expanding regionally.

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Being located in the north of Vietnam, the acquired properties will extend Boustead's presence in the key market of Vietnam as the company's current properties are within the Dong Nai Province neighbouring Ho Chi Minh City in Vietnam's south.

Upon completion of the acquisition, Boustead said it expects to enter into asset management and property management agreements with a joint venture company of the vendor. These are expected to generate additional income for the group, it added.

Shares of Boustead Projects ended Friday S$0.01 or 1 per cent lower at S$1.01.