UIB REIT Management Pte. Ltd., manager of UI Boustead REIT, announced on May, 22 2026 that the trust will co-invest in the development, design and construction of a build-to-suit aerospace facility at Seletar Aerospace Park, Singapore.
The project, managed through a newly formed limited liability partnership 51.0% owned by the REIT’s trustee and 49.0% by a subsidiary of Boustead Singapore Limited, involves a total development cost of approximately 104.0 million Singapore dollars. UI Boustead REIT’s effective share amounts to 53.1 million Singapore dollars.
The development will sit on a 29,986-square-metre leasehold site with an expected gross floor area of about 252,113 square feet. The lease on the land from JTC Corporation runs for roughly 24.5 years starting Jun, 30 2026, while a third-party global aerospace tenant has signed an agreement for a 22.5-year lease of the entire facility, featuring built-in rental escalations.
Under the partnership agreement, the REIT trustee will contribute up to 17.60 million Singapore dollars of the committed development funding, with the JV partner contributing up to 16.91 million Singapore dollars. The project includes an EPCM contract and construction award to Boustead Projects E&C Pte. Ltd., valued at 4.22 million and 38.25 million Singapore dollars respectively.
The estimated yield on cost for the development is about 8.6%, exceeding the 7.4% projected net property income yield for UI Boustead REIT’s Singapore portfolio in Projection Year 2027. Upon completion, the facility is expected to lift the REIT’s assets under management from 1.9042 billion to 1.9581 billion Singapore dollars and extend the portfolio WALE from 5.8 to 6.4 years.
The transaction is classified as a non-discloseable transaction under SGX Chapter 10 and does not require unitholder approval. The manager plans to fund its capital commitment of 17.9 million Singapore dollars through internal resources and/or existing debt facilities, which could raise aggregate leverage from 37.9% to 39.7% at completion.