A subsidiary of Boustead Projects has acquired the property at 28 & 30 Bideford Road from SC Aetas Holdings (also known as the Singapore subsidiary) after the latter was placed under creditors’ voluntary liquidation.
The consideration amount for the property is $515.0 million, excluding tax, and will be funded via external bank financing as well as shareholders’ loans.
The consideration was arrived at on the basis of a sale as part of the creditors’ voluntary winding up. Based on a valuation conducted by Savills Valuation and Professional Services on June 20, the property has a market value of $550 million.
SC Aetas used to own the property at 30 Bideford Road. The property has been developed as an 18-storey mixed development with a site area of 2,006.9 sqm with a gross floor area (GFA) of 14,637.89 sqm. The development comprises targeted hospitality, healthcare and commercial components.
The property was purchased by Bideford House, a 50%-owned joint venture (JV) of BP-Real Estate Investment, which is, in turn, a wholly-owned subsidiary of Boustead Projects.
The shareholders of Bideford House are BP-Real Estate Investment, Roark Capital and Lim Cher Meng Realty, who own a respective stake of 50%, 25% and 25%. The shareholders are not related to one another. Roark Capital Ltd and Lim Cher Meng Realty are investment holding companies of private investors.
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Boustead Projects intends to satisfy BP-Real Estate’s portion of the consideration through cash funded from its internal resources.
According to Boustead Projects in a June 24 filing, the acquisition will enable it to “expand and diversify its property portfolio, as well as increase its income streams through the ownership and management of the property”.
The acquisition is expected to have a material effect on the group’s earnings per share (EPS) for the current financial year (FY2023) ending March 31, 2023. It is not, however, expected to have a material effect on its net tangible assets (NTA) per share for the FY2023.
As at 3.45pm, shares in Boustead Projects are trading 3.5 cents lower or 3.80% down at 88.5 cents.
