Metro Holdings acquires 26% of 14-property industrial portfolio

The investment made was about $76.7m.

SGX-listed property investment and development group Metro Holdings has expanded its presence in Singapore through the acquisition of a 26% stake in a portfolio of 14 business parks and high-spec industrial and logistics properties.

The investment, amounting up to $76.7m, was made by subscribing to units and notes to be issued by Perpetual (Asia), in its capacity as trustee of Boustead Industrial Fund (BIF).

“The investment marks Metro’s entry into the highly sought-after industrial real estate market in Singapore for long term investment growth and represents the first collaboration and strategic partnership with the sponsor of BIF, Boustead Projects Limited (BPL),” the firm said in a media release.

Meanwhile, BPL or its wholly owned subsidiary, would hold 25% of the units and notes, whilst 49% would be in the hands of third party institutional real estate investors.

“The total portfolio of 14 properties comprises six industrial properties, one business park, four high-spec industrial properties and three logistics properties are located in various parts of Singapore and within proximity to transportation nodes,” Metro added. In addition, the portfolio has a total net lettable area of 1,748,105 sq ft, an average occupancy rate of 99%, and an overall weighted average lease expiry of about 7.7 years.