Boustead Singapore to acquire Ausgroup property for S$39.36m

Property has an area of 29,893.1 sq m.

In a release, Boustead Singapore Limited announced that its wholly-owned subsidiary, Boustead Trustees Pte. Ltd. as trustee of Boustead Real Estate Fund, has on 10 July 2013, entered into a conditional put and call option agreement with Ausgroup Singapore Pte. Ltd., for the proposed acquisition of the property at 36 Tuas Road, Singapore 638505 together with the (i) building(s) and structure(s) constructed on the Property; and (ii) the mechanical and electrical equipment located in the Property.

On completion of the Acquisition, the Purchaser will lease the Property back to the Vendor for a term commencing on the date of Completion up to 14 May 2025.

The Property, an industrial workshop with ancillary office, is located at Lot 2772C of Mukim 7, 36 Tuas Road, Singapore 638505 and has an area of approximately 29,893.1 square metres. The Property is held under a lease issued by Jurong Town Corporation for a term of 30 years commencing on 16 May 1995 with a covenant by JTC to grant a further term of 30 years subject to the terms and conditions of the lease.

Under the terms of the Put and Call Option Agreement, the Purchaser has been granted a call option to require the Vendor to sell the Property and the Vendor has been granted a put option to require the Purchaser to purchase the Property. Under the terms of the Put and Call Option Agreement, the Purchaser and the Vendor will be deemed to have entered into a sale and purchase agreement for the Property upon the exercise of the Call Option, or the Put Option, as the case may be.

The purchase price of the Property is S$39,360,000, which was arrived at on a willing-buyer and willing-seller basis and after taking into account the open market valuation of the Property.

The open market valuation of the Property is S$44,600,000 based on a valuation dated 28 June 2013 commissioned by the Purchaser and conducted by Colliers International Consultancy & Valuation Pte Ltd. The valuation was based on the Income Capitalisation Approach and the Discounted Cash Flow Analysis.