Boustead Development Partnership, a joint venture between the Abu Dhabi Investment Council and Singapore-listed developer Boustead Projects, has agreed to commit S$250 million in equity to be invested into the development and re-development of new industrial facilities in Singapore.
Once fully invested and leveraged, the investment portfolio will be worth in excess of S$800 million, said UBS Asset Management in a press statement.
The latter’s real estate and private markets business will be managing the deal. This is the second award to the banking unit by the sovereign wealth fund.
Of the S$250 million, S$119 million has already been committed across four projects, two of which have been completed.
One of the initial investments was the new regional headquarters for GlaxoSmithKline, which was completed in November last year. The 14,350 sq m asset is located in the 200ha One North precinct, which is designed to host research facilities and business park space.
The two latest investments, agreed this month, include a 39,487 sq m mixed-use development at Mediapolis, also in Singapore’s One North precinct, and Continental Building Phase 3, a 11,151 sq m research and development (R&D) centre in Kallang iPark, which will be developed for Continental Automotive Singapore, an R&D hub owned by global automotive supplier Continental Corporation.
Both are targeted to be completed next year.
Earlier in the month, Boustead Projects had already announced the co-investment and development contract for Continental Building Phase 3. It also said Continental Building Phase 3 will adjoin the hub’s existing Continental Building at 80 Boon Keng Road within Kallang iPark.
Continental Building Phases 1 and 2 were also developed by Boustead Projects under design-build-and-lease arrangements and completed in 2012 and 2014, respectively.
Graham Mackie, head of real estate Asia-Pacific at UBS, said his unit continues to see strong interest for real estate investment in its priority markets of Japan, Australia, China and Singapore, as well as demand from Asia-Pacific investors seeking exposure to Europe, the US and emerging markets such as Brazil.
The mandates team in Singapore is now managing over US$1.3 billion of committed equity on behalf of institutional and private wealth clients, which equates to a total portfolio value of around US$3 billion once fully invested.
Adapted from: The Business Times, 21 January 2017