Metro Holdings says ‘no definitive agreement’ entered on Boustead Singapore’s proposed divestments

[SINGAPORE] Property investment and development group Metro Holdings said on Thursday (Sep 18) that it has not made any decision nor entered into any agreement with respect to the proposed transactions behind Boustead Singapore’s Thursday announcement.

This concerns the valuation of Boustead Singapore’s proposed real estate investment trust (Reit) listing UI Boustead Reit at around S$1.9 billion, and the divestment of its stake in four Singapore properties through Boustead Projects to the Reit.

Boustead Projects sold its 51 per cent stakes in the properties located at 29 Media Circle, and 8 and 12 Seletar Aerospace Heights, respectively. It also divested its 62.25 per cent of its stake in a property at 84 Boon Keng Road, and a 37.75 per cent interest in a fourth property at 11 Seletar Aerospace Link, reported The Business Times previously.

The company, through its indirect wholly owned subsidiary Metrobilt Construction, holds 26 per cent of the units in the Boustead Industrial Fund and the 7 per cent notes due 2031 issued by Perpetual (Asia).

In its Thursday statement, Metro Holdings noted that there is no certainty that any definitive agreement will be entered into and/or that any possible transaction will materialise in respect of the group’s interests from these discussions.

“Shareholders are accordingly advised to exercise caution when dealing in the shares of Metro Holdings and to refrain from taking any action in respect of their shares in the company which may be prejudicial to their interests,” wrote joint company secretaries Tan Ching Chek and Eve Chan in the release.

The counter closed flat at S$0.53 on Thursday.