Boustead Singapore's stock plummeted 3.67% during intraday trading on Tuesday, as the market digested a series of corporate announcements regarding a major real estate restructuring.
The investment holding firm announced it had received approval from the Singapore Exchange to list UI Boustead REIT on the mainboard. As part of this process, Boustead will divest its interests in 15 properties, including 12 industrial assets and three other Singapore properties such as the Razer SEA headquarters and the Rolls-Royce Solutions Asia facility. The company is expected to receive approximately S$218.7 million from these property sales.
Boustead plans to reinvest S$202.8 million to acquire about 16.9% of the newly listed REIT, with the overall transaction projected to generate a gain of around S$154.6 million. The proposed REIT's initial portfolio will consist of 23 properties valued at approximately S$1.9 billion, focusing on logistics and industrial assets primarily in Singapore.