BOUSTEAD Projects : AVM 0% will be redeveloping a logistics and manufacturing facility in Tuas with two accredited investors, who were not named in the bourse filing it made on Friday (Jun 23).

The real estate solutions provider said the redevelopment of the facility, with a gross floor area of 59,800 square metres, will allow it to tap the logistics and selected manufacturing market where there is good demand and limited supply for high quality logistics and warehousing facilities.

The redevelopment, upon expected completion in the first half of 2025, will also maximise the plot ratio of the property which had previously been under utilised.

For the purposes of the joint redevelopment, Boustead Projects has entered into an agreement with the two investors to sell them units in the Boustead Real Estate Fund for S$8.9 million.

The transaction was on a willing-buyer, willing-seller basis and took into account factors such as the net book value of the units, the business potential of Boustead Real Estate Fund and prevailing market conditions.

Boustead Real Estate Fund was established in 2013 as a private trust with the objective to invest in, administer and manage investments relating to the Tuas property so as to achieve a stable flow of recurring income and capital improvement for unitholders.

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The fund is a private trust and therefore its securities are not available for subscription by the public, including Boustead Projects shareholders. Any offer of securities of the fund is made to restricted classes of institutional and sophisticated investors.

Boustead Projects has entered into a subscription agreement to commit up to S$33.15 million for issued units in Boustead Real Estate Fund, with the amount being the estimated proportionate funding from it for the redevelopment.

Also, the two investors have entered into a subscription agreement to subscribe for their respective proportions of units in the Boustead Real Estate Fund to fund the redevelopment.

Boustead Projects shares have been suspended since Mar 28 as the public float slid to below 10 per cent when Boustead Singapore : F9D 0%’s offer to take it private closed with it holding 95.5 per cent of its shares.