Boustead Subsidiary strikes deal with Hankyu Hansin Express

Boustead Projects’ second design-build-and-lease contract in 2010 is the sixth in its industrial leaseback assets portfolio.

Boustead Singapore Limited (“Boustead” or the “Company”) is pleased to announce that its 91.7%-owned subsidiary, Boustead Projects Pte Ltd (“Boustead Projects”) has been awarded a design-build-and-lease contract from Hankyu Hanshin Express (Singapore) Pte Ltd (“HHE”) for a logistics facility (the “Facility”). Due to be completed in the second quarter of 2011, the Facility located at Changi International LogisPark will have a gross floor area of approximately 12,000 square metres, as mentioned in a Boustead report.

The Facility will rise up to four levels and be connected directly to Boustead Projects’ existing adjacent 23,800 square metres ramp-up logistics facility (the “CN Logistics Facility”) held under Boustead Projects’ wholly-owned subsidiary, CN Logistics Pte Ltd (“CN Logistics”). The Facility will be connected to the CN Logistics Facility at both the first and third levels, thus expediting traffic movement in and out of the Facility, especially for heavy container and passenger vehicles. Boustead Projects has greatly value-added to the overall efficiency of CN Logistics through the shared integrated ramp-up at the CN Logistics Facility, which is shared by HHE and also Panalpina World Transport (Singapore) Pte Ltd, which occupies an 11,200 square metres single-tenant logistics facility on the opposite side of the CN Logistics Facility. The integrated solution provided by Boustead Projects will provide HHE with: 1) a cost-competitive solution due to reduced construction costs; and 2) improved utilisation of the land area.

Including the Facility, the total industrial leaseback assets held directly under CN Logistics will be increased to three. This is the second design-build-and-lease contract secured by Boustead Projects in 2010, bringing the total number of industrial leaseback assets (both completed and under construction) in its portfolio to six industrial facilities with an expected gross floor area of 63,300 square metres.

Mr Thomas Chu, Managing Director of Boustead Projects said, “We are pleased to be given the opportunity to design, build and lease a logistics facility to Hankyu Hanshin, one of Japan’s leading logistics corporations. This cost-effective facility will provide additional value to Hankyu Hanshin by supporting its vast network of logistics operations in Asia.”