Boustead Development Partnership
We established the Boustead Development Partnership (BDP) with a reputable Middle East Sovereign Wealth Fund. The BDP has a strategy to develop and redevelop modern logistics and high quality industrial facilities in Singapore, and will also be the proposed investor for future design–build–and–lease projects, development projects and redevelopment projects in the industrial property market that meet the BDP’s specified investment requirements. Boustead Projects will be the design–and–build partner for the BDP’s pipeline of projects.
Four development properties have been secured under the BDP so far. The completed properties comprise Safran Helicopter Engines’ new regional headquarters and GlaxoSmithKline (GSK)’s headquarters for Asia, named GSK Asia House. The developments under construction comprise Continental Building Phase 3, a research & development centre expansion, and a multi–tenanted business park development at Mediapolis, one–north, awarded under a JTC Corporation concept and price tender.
THAB is a joint venture that we formed with AME Construction Sdn Bhd, SGX–listed Tat Hong Holdings Ltd and SGX–listed CSC Holdings Ltd in 2013 to address our growing presence in Malaysia. THAB is developing iBP @ Nusajaya, a premier freehold clean and green business park located in the Southern Industrial & Logistics Clusters of Iskandar Malaysia (Flagship Zone B). Phase 1 of the development offered 50 units of flexibly-designed detached and semi–detached modern quasi–business and industrial facilities following a successful launch in October 2014. Boustead Projects holds the project management partner role for iBP @ Nusajaya.
In a further endorsement of THAB’s successful partnership, the joint venture embarked on a second development project in Iskandar Malaysia for a two–floor ramp–up logistics hub at the Port of Tanjung Pelepas (Flagship Zone C). Boustead Projects holds the design–and–build partner role for this joint development.
In China and Singapore, we have partnered consortia led by SGX–listed Perennial Real Estate Holdings Ltd.
At the centre of Beijing Tongzhou’s new Central Business District, we hold a 4% stake in Beijing Tongzhou Integrated Development Phase 1, a mixed–use Grade A iconic landmark development which is currently under construction along the famous Grand Canal and is due to be completed by 2020. Phase 1 of this development features a proposed 414,000 square metres commercial complex comprising a five–level retail podium and three towers of office and residential space.
In Singapore, we sold a 5.5% stake in TripleOne Somerset, a Grade A property within the Central Business District and prime Orchard precinct. On the final day of FY2017, we completed the S$27.5 million sale, recognising a net gain of S$8.9 million after deducting divestment fees.
Guangdong New Co-Op Development Partnership
We have signed a strategic framework agreement with Guangdong New Co–Operative Agricultural Products Wholesale Centre Investment Co, Ltd (Guangdong New Co-Op), a business unit of Guangdong Provincial Supply & Marketing Co–Operative Society (Guangdong Co-Op Society), for the purpose of jointly developing key agricultural and commodities logistics networks within Guangdong Province, China.
The Framework Agreement provides Boustead Projects and Guangdong New Co–Op with a formal structure to jointly invest, develop, construct and manage a series of key agricultural and commodities logistics networks within Guangdong Province. This includes the joint acquisition of land, development and construction of logistics infrastructure and parks, and subsequent management or sale of completed projects.
The development of logistics cities throughout Guangdong Province (Guangdong Logistics Cities Strategy) is a key component of China’s economic growth strategy that enjoys strong support from the Chinese Central Government. The advancement of the Guangdong Logistics Cities strategy is also a key mandate for the Guangdong Co–Op Society and its subsidiary, Guangdong Yuehe Investment Holdings Co, Ltd, the key shareholder and investor in Guangdong New Co–Op.
The Guangdong Logistics Cities agenda also falls within the advancement of the Chinese Central Government’s One Belt, One Road initiative, given the strategic importance of Guangdong Province. Guangdong Province has the largest provincial economy in China and represents more than 10% of China’s economic output. In 2014, trade volume between Guangdong Province and countries situated within the One Belt, One Road initiative reached US$131 billion, representing over 22% of trade volume between mainland China and these countries.