We have established and invested in several strategic partnerships and platforms to enhance our competitive position and geographically expand across Asia. Working with like-minded and reputable partners on several fronts has allowed us to pool our complementary capabilities and expertise to take on larger-scale projects and broaden our offerings to clients, while simultaneously reducing commercial and operational risks related to a particular geographic market, industry cluster or real estate sector. Activities under strategic partnerships potentially feed into our design-and-build and real estate businesses.
Our current partnerships include the Boustead Development Partnership (BDP) in Singapore, Echo Base-BP Capital Pte Ltd (Echo Base) in Singapore, BP Malaysia Airports Subang Aerotech Sdn Bhd (Subang Aerotech Park) in Malaysia, a strategic partnership through investment in DSCO Group Holdings Pte Ltd (DSCO) in Singapore, THAB Development Sdn Bhd (THAB) in Malaysia and a consortium led by SGX-listed Perennial Real Estate Holdings Ltd (PREH) in China.
Boustead Development Partnership
Established in 2014, the BDP is our largest joint venture (JV) and a co-investment partnership with a reputable Middle East sovereign wealth fund. Under the BDP, we possess a strategic JV platform to undertake sizeable development and redevelopment projects in Singapore’s industrial real estate sector.
Six development properties have been secured under the BDP so far. These are:
During 2018, we launched Echo Base, a strategic JV real estate fund management and services platform focused on the development, investment and management of smart buildings and integrated developments across the Asia Pacific, specifically in selected global gateway cities. Echo Base is equally owned by us and Moor House Capital Pte Ltd, a company that is majority-owned by Razer’s co-founder. Echo Base’s maiden project under asset management is the Razer Southeast Asia Headquarters, a high-tech smart business park development under Snakepit-BP LLP, our JV with Razer’s co-founder and other private investors. With a mandate covering the Asia Pacific and technology-driven real estate, Echo Base is also expected to facilitate our entry into new real estate sectors across a wider geographical reach.
During 2019, we made a strategic investment in a 25% shareholding of DSCO, a provider of specialised building engineering consulting services in the Asia Pacific. Given DSCO’s strong reputation as a leading designer in data centres, we expect our investment in DSCO to support our future expansion and augment our construction and development capabilities in high-tech and high-value projects.
Subang Aerotech Park
During 2019, we established a strategic JV platform with Malaysia Airports Holdings Bhd (MAHB) to develop an aerospace and high-tech park at the Subang Aerotech Park in Selangor, to be leased to corporations serving the aerospace industry. MAHB has granted our JV the rights to sublease up to over 140,000 square metres of land next to the Subang Airport, subject to MAHB obtaining the relevant authority approvals for the sublease.
Malaysia, in particular Selangor, is expected to continue playing an important role in the Asia Pacific’s growing MRO market and the aerospace industry. Our JV with MAHB will allow us to further expand our overseas presence in a high value sector where we are able to add value, given our integrated and growing capabilities across design-and-build and development, and our experience and track record in delivering projects in the aerospace industry which currently stands at over 200,000 square metres in gross floor area (GFA).
Established in 2013, THAB is a strategic partnership that we formed with AME Construction Sdn Bhd, Tat Hong Holdings Ltd and CSC Holdings Ltd to address our growing presence in Malaysia. THAB has completed two developments, namely iBP@Nusajaya, a premier freehold business park located in the Southern Industrial & Logistics Clusters of Nusajaya; and a multi-tenanted logistics hub at the Port of Tanjung Pelepas, almost all of which has been successfully leased out.
Established in 2012, we joined a consortium led by PREH to develop Beijing Tongzhou Integrated Development Phase 1, a mixed-use Grade A iconic landmark development at the centre of Beijing Tongzhou’s Central Business District. We hold a 4% shareholding in this landmark development. Phase 1 features a proposed 414,000 square metres of GFA with an eight-level retail podium, two office towers and one residential tower. Construction of Phase 1 has begun and is expected to be completed by 2023.