Boustead Singapore

[weijian]

In the 2021 EGM FAQs, management mentioned that the remaining properties, valued at around S$0.7 million, are mainly held by the JV. It's possible they plan to monetize these assets. I think this could be the one they intend to monetise but i can't reconcile to the recent announcement on the pan asia UIB fund which i thought is to sell their remaining stakes.

hi hancheng08,

The current announcement is focused in Singapore assets and therefore, we can exclude foreign assets/JV (eg. some of the Vietnamese ones). Similarly, I am not able to reconcile this REIT announcement with the UIB fund sale, since there may be overlaps. My best guess is that this REIT announcement may be complimentary to the UIB fund sale --> ie. a conversion of private fund mgt/assets of BSL/UIB to a publicly traded REIT.

[jaco]

Is it thinkable that the new REIT is initiated by a third party, neither Boustead nor UIB related. The announcement contains no real news facts. It feels like the response to a discovery/suspicion of insider information leaked during the negotiation process. Such a leak is much more likely when you talk with third parties rather than working internally. 

Just a few days ago, The Fifth Person showed that small cap REITs don't do well: https://www.youtube.com/watch?v=9Ck6WJ6eNZA  A pure Boustead REIT would likely be a small cap for a while. It would need its own board, meet regulatory requirements, its own paperwork etc, etc. It would be another sister company like Boustead Projects which was ultimately delisted due to lack of inspiration. In that light, inclusion of the properties in a larger REIT of a third party seems like a more logical next step.

[hancheng08]

In the 2021 EGM FAQs, management mentioned that the remaining properties, valued at around S$0.7 million, are mainly held by the JV. It's possible they plan to monetize these assets. I think this could be the one they intend to monetise but i can't reconcile to the recent announcement on the pan asia UIB fund which i thought is to sell their remaining stakes.

hi hancheng08,
The current announcement is focused in Singapore assets and therefore, we can exclude foreign assets/JV (eg. some of the Vietnamese ones). Similarly, I am not able to reconcile this REIT announcement with the UIB fund sale, since there may be overlaps. My best guess is that this REIT announcement may be complimentary to the UIB fund sale --> ie. a conversion of private fund mgt/assets of BSL/UIB to a publicly traded REIT.

I think the Vietnam assets with KTG are part of the UIB transaction based on the announcement. It's likely that the seed assets for the REIT will come from the JV-held properties, like Alice@Mediapolis. We will see how it unfolds.

[hancheng08]

Is it thinkable that the new REIT is initiated by a third party, neither Boustead nor UIB related. The announcement contains no real news facts. It feels like the response to a discovery/suspicion of insider information leaked during the negotiation process. Such a leak is much more likely when you talk with third parties rather than working internally. 

Just a few days ago, The Fifth Person showed that small cap REITs don't do well: https://www.youtube.com/watch?v=9Ck6WJ6eNZA  A pure Boustead REIT would likely be a small cap for a while. It would need its own board, meet regulatory requirements, its own paperwork etc, etc. It would be another sister company like Boustead Projects which was ultimately delisted due to lack of inspiration. In that light, inclusion of the properties in a larger REIT of a third party seems like a more logical next step.

There could be various reasons, perhaps for transparency as well. 
Maybe an email to their IR team can clarify things. 

Ultimately, a REIT's success depends on asset quality and managerial competence. 
Poor decisions, like overpaying for assets while issuing equity at a discount, will likely lead to a trading discount. 

Boustead is aware they need to perform well, given the track record of other S-REITs, to build unitholder trust. They have got a strong selling point with their Singapore assets, unlike recent IPOs that feature foreign assets with FX risks, which might be unfamiliar to Singaporean investors.

[Curiousparty]

With Razer SEA HQ, ALICE@Mediapolis and 6 Tampines Industrial nearing asset stabilisation, Mr Wong Yu Wei reported that BP Group’s pipeline of stabilised assets were expanding. These would bring the Company’s pipeline of stabilised assets to approximately S$600 million and the amount would further increase with the redevelopment of 36TR and the Bideford property.

Under volatile global market conditions, the Company foresaw some softness in capital
markets. The Management would continue to explore options to syndicate, dispose or inject them into BIF.

(extract from 2023 AGM Minutes for Boustead Project)