Boustead flags potential sale of Tai Seng fund asset into JV; REIT IPO pathway remains uncertain
Summary:
-
Boustead Singapore says Boustead Industrial Fund’s trustee has signed a framework agreement with Jumbo Group’s JGOR to potentially sell 26 Tai Seng Street into a new SPV, with JGOR owning 30% and the fund trustee 70%.
-
The SPV would only be able to acquire the JTC leasehold interest after the assignment prohibition ends in 2033, via put and call options granted between the trustee and the SPV, and remains subject to regulatory approvals and clearances.
-
If the proposed UI Boustead REIT IPO proceeds and it acquires all units in Boustead Industrial Fund, the REIT would step into the fund’s position under this framework agreement for 26 Tai Seng Street.
-
Boustead reiterates that the REIT IPO and listing depend on market conditions, negotiations, regulatory approvals and asset acquisitions, and cautions there is no certainty the IPO or this fund asset transaction will proceed.