Boustead Projects acquires Minh Quang Industrial Development

December 15, 2023 | 18:09
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KTG and Boustead Industrial Logistics JSC (KBIL), a joint venture of Singapore's Boustead Projects Limited, agreed to purchase 3,300,000 ordinary shares of Minh Quang Industrial Development JSC on December 12.

KBIL is Boustead Projects’ strategic collaboration with Khai Toan JSC (KTG) and already owns a portfolio of logistics and industrial properties in Vietnam through various special purpose vehicles.

As of last March, KBIL had interests in eight completed properties with a total market valuation of almost $132 million, comprising over 260,000 square metres, and an overall committed occupancy rate of 76 per cent.

Boustead Projects acquires Minh Quang Industrial Development

Minh Quang had previously signed an agreement with a developer in relation to a land lot with an area of approximately 136,450sq.m in the district of Yen Phong in Bac Ninh province. The land is expected to be handed over to Minh Quang sometime in the second half of next year, with phased construction able to commence thereafter. The land has a tenure of about 45 years to 2069.

Through the acquisition of Minh Quang, the Singaporean firm aims to develop the land into industrial facilities for lease, adding to KBIL's growing portfolio.

Vietnam continues to stand out as one of the world’s fastest growing economies, with a proven track record in offering multinational corporations the ideal business environment for investment, manufacturing operations, and logistics networks.

Given its strategic location and long-term growth factors, Boustead Projects believes that this land purchase aligns with its prudent expansion strategy and will strengthen its presence in Vietnam, which it views as a key market.

The consideration for the purchase of the shares is equal to almost VND262 billion (equivalent to $10.7 million) and is expected to be funded by KBIL by way of issuance of equity to Boustead Projects and KTG in the proportion of their respective shareholding ratio in KBIL.

Boustead Projects, via its wholly owned subsidiary BP-Vietnam Development Pte Ltd, has agreed to subscribe for such number of shares at the aggregate subscription price of VND128.3 billion (equivalent to $5.2 million), representing 49 per cent of the purchase consideration.

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