Drew & Napier acting for Metro Holdings Limited in its investment of a 26% stake in the Boustead Industrial Fund
06 Jan 2021
Drew & Napier is acting for Main Board-listed Metro Holdings Limited (“Metro”) in its investment of a 26% stake in the Boustead Industrial Fund (“BIF”), which will comprise a portfolio of 14 quality industrial, business park, high-spec industrial and logistics properties. The transaction had various aspects, including the proposed acquisition of the real estate portfolio by the Boustead Industrial Fund and borrowings to be taken by the Boustead Industrial Fund for the proposed acquisition.
Metro’s investment in BIF was made through its indirect wholly-owned subsidiary incorporated in Singapore, Metrobilt Construction Pte Ltd, which entered into subscription agreements to initially subscribe for 26% of the Units and 7.0 per cent. Notes due 2031 to be issued by Perpetual (Asia) Limited (in its capacity as trustee of BIF) for an investment amount of up to S$76.6 million.
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.
The remaining 25% of the Units and Notes will be held by Boustead Projects Limited or its wholly-owned subsidiary and 49% by another third party institutional real estate investor.
You may read more in Business Times online here.
Advising Metro are Directors Julian Kwek, Gary Wan and Associate Ervin Seng. Co-Head of Real Estate and Corporate Real Estate Ho Soo Lih, Director Renu Menon, Senior Associate Shaun Ng and Associate Anmol Kaur Gill supported the real estate and financing aspects of the transaction.