Boustead Singapore releases details on property arm spinoff

ENGINEERING and technology group Boustead Singapore will spin off its property arm by distributing up to 49 per cent of its Boustead Projects (BP) segment to its shareholders and by listing BP on the Singapore Exchange (SGX) mainboard. Boustead will hold on to at least 51 per cent of BP.

The 14 wholly-owned properties that BP will retain are currently valued in its books at S$162.5 million. They would, however, have an estimated market value of S$367.5 million, the company said.

These details, among others, were released by Boustead in an SGX announcement on Tuesday evening.

Boustead is currently proposing to hive off its real estate solutions business, which designs and builds industrial properties for clients, and then leases the properties to them.

Boustead said that through this demerger exercise, it aims to unlock shareholder value, enable management to focus on their respective core businesses, allow direct access to capital markets for BP, and create investment flexibility for shareholders.

Boustead shares closed at S$1.715, up one cent, before the announcement.