Boustead Projects has, on May 5, entered into a strategic collaboration to acquire, develop and own a portfolio of logistics and industrial properties in Vietnam.
The collaboration was entered into by the company’s wholly-owned subsidiary, BP-Vietnam Development with Khai Toan Joint Stock Company (KTG).
According to Boustead Projects, KTG is a “strong and reputable local partner with a large industrial real estate footprint in key logistics regions within Vietnam and in particular, has developed and owns numerous industrial real estate assets in the Greater Hanoi and Greater Ho Chi Minh regions.”
The strategic collaboration will strengthen Boustead Projects’ business presence in Vietnam and is made in the ordinary course of its business.
In the same statement, the company adds: “It is Boustead Projects’ intention and objective to further bolster its cooperation and business relationship with KTG through exploring in future, other available and attractive opportunities presented by KTG’s other assets in Vietnam.”
Under the strategic collaboration, BP-Vietnam will acquire a 60% stake in KTG & Boustead Joint Stock Company (KBJSC), which will be transferred from KTG at a consideration of VND651 billion ($39.1 million).
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KBJSC is the parent company of KTG & Boustead Industrial Logistics Joint Stock Company, which owns the following logistics and industrial properties through special purpose vehicles (KBIL SPVs).
The properties held by the KBIL SPVs have a total market value of US$84.2 million ($116.3 million). The value is based on a valuation report by Jones Lang LaSalle Vietnam Co.
The properties comprise a total of 369,329 sqm of land and buildings over six plots in Vietnam.
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Boustead Projects had previously entered into an option agreement with KTG for the acquisition of 49.0% equity interest in KBJSC, for which BP-Vietnam had paid a deposit amount of VND289.25 billion. The deposit amount will be set off against the purchase price on completion.
The balance of VND362.56 billion will paid to KTG on the satisfactory rectification of any due diligence issues identified by BP-Vietnam.
Shares in Boustead Projects closed flat at 95.5 cents on May 5.
