[SINGAPORE] THE manager of ESR Real Estate Investment Trust (ESR Reit) has completed the divestment of two logistics properties in Singapore for S$6.8 million.
This represents a 3.5 per cent premium above their valuation of S$6.6 million as at Dec 31, 2024. The divestment is not expected to have any material impact on the Reit’s net asset value and distribution for the financial year ending Dec 31, 2025.
Net proceeds will be used to repay outstanding borrowings, finance potential acquisitions, asset enhancement initiatives and redevelopments, as well as fund general working capital requirements, the manager said earlier this year in announcing the divestment.
The two properties – 1 Third Lok Yang Road and 4 Fourth Lok Yang Road in Pioneer – have a 30-year lease that expires in December 2031. They are both multi-tenanted with a gross floor area of 10,601 square metres.
With the divestment, ESR Reit’s portfolio now consists of 71 properties across Singapore, Japan and Australia, the Reit manager said in a bourse filing on Monday (Mar 24). This excludes 48 Pandan Road, which is held through a joint venture. The Reit also has three property funds in Australia.
Units of ESR Reit closed at S$0.245, down 2 per cent or S$0.005 before the news.
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