Metro divests industrial investment or net profit of 116 million yuan to layout retail brand management | Lianhe Zaobao

Metro Holdings is adjusting its business layout and accelerating its "downsizing," announcing the divestment of its industrial real estate investment and the establishment of a company focused on international retail brand management, planning to introduce new brand concepts to Singapore.

According to a statement released on Tuesday (February 10), Metro Holdings announced that it has signed an agreement with relevant buyers to sell its 26% stake in the Boustead Industrial Fund, with the buyer being the trustee of UI Boustead REIT under Boustead Singapore, and fully redeem all notes originally due in 2031 with a coupon rate of 7%.

Through this divestment and note redemption, Metro Holdings is expected to receive a net cash benefit of approximately SGD 116 million after deducting legal and professional service fees. The transaction is expected to be completed when UI Boustead REIT is listed on the Singapore Exchange, or by no later than March 2026.

The Boustead Industrial Fund's portfolio directly holds 12 assets, including GSK Asia House located at Rochester Park, projects at 351 Braddell Road and 26 Tai Seng Street; there are three locally joint-venture real estate projects.

Metro Holdings entered the industrial real estate market in 2020 by subscribing to equity and notes at a price of SGD 76.6 million through its wholly-owned subsidiary Metrobilt Construction Pte Ltd via the Boustead Industrial Fund; it subsequently invested SGD 17.58 million and SGD 15.8 million to subscribe for newly issued shares and notes at a 26% ratio.

Metro Holdings Group CEO Ye Kangwen said, "Since 2020, Metro has obtained stable and continuous income through its investment in the Boustead Industrial Fund, allowing us to invest in industrial and logistics real estate in Singapore."

Further Reading

Metro Holdings reports a loss of SGD 12.9 million in the first half of FY 2026 Metro divests a joint retail asset in Western Australia, expected net income of approximately SGD 4.1 million

The group believes that this divestiture allows the company to realize the value of its investment in Boustead Industrial Fund, freeing up capital for reinvestment in other strategic initiatives. Additionally, the divestiture is expected to have no significant impact on the group's consolidated net asset value per share or earnings per share for the fiscal year 2026.

On the other hand, Metro also announced the establishment of a new subsidiary, Grand Brands Asia Pte Ltd, to engage in the management and operation of international retail brands.

The announcement stated that Metro has reached an agreement with international market brand wholesaler EUT Solutions, and the new subsidiary will focus on selecting and managing a range of contemporary international retail brands, with plans to introduce new brand concepts to Singapore at the appropriate time.

Ye Kangwen said, "Today's consumers are increasingly seeking diversity, quality, and brands that reflect their lifestyle. We will expand international retail brand channels through the new subsidiary to provide consumers with more brand choices."

Metro's stock price rose after the market opened on Tuesday, reporting SGD 0.56 as of 10:39 AM, an increase of 4.67%