SINGAPORE (Oct 1): BP-TPM, a 51%-owned joint venture of Boustead Projects, has entered into a sale and purchase agreement to acquire the leasehold interest of an industrial building at 6 Tampines Industrial Avenue 5 for a purchase price of $77.4 million, excluding stamp duty and GST.
The property is held on a 30-year lease granted by JTC Corporation, which commenced on May 10, 2009, with an option to renew for a further 30 years at the prevailing market rent as determined by JTC.
The purchase price will be financed via a combination of equity and bank borrowings.
Boustead Projects’ share of equity contribution is $14.2 million.
Upon completion of the deal, the company says BP-TPM intends to award a contract for asset enhancement works to the property to Boustead Projects subsidiary Boustead Projects E&C.
The company intends to derive long-term leasing income from the property, which is sold with vacant possession.
Shares in Boustead Projects closed 1.5 cents lower, or down 1.6%, at 92 cents on Monday.
