ESR Reit to sell Tuas industrial building for S$9.9 million
THE manager of ESR real estate investment trust (ESR Reit) has entered into a contract to divest an industrial building for about S$9.9 million.
The consideration represents a 1.5 per cent premium above its valuation of S$9.7 million, said the manager in a bourse filing on Wednesday (Jan 15).
The divestment is expected to be completed in the first quarter of 2025, and is not expected to have a material impact on ESR Reit’s net asset value and distribution per unit for the financial year ending Dec 31, 2025.
The property, located at 79 Tuas South Street 5, is a general industrial building in the Tuas Industrial Estate, with a gross floor area of 6,312 square metres.
The manager said: “Net proceeds from the divestment will be deployed to repay outstanding borrowings, finance potential acquisitions, asset enhancement initiatives and redevelopments and/or fund general working capital requirements.”
Upon completion of the divestment, the Reit’s portfolio will consist of 71 properties in Singapore, Japan and Australia, as well as investments in three property funds in Australia. This excludes the property at 48 Pandan Road, which is held through a joint venture.
Units of ESR Reit closed Wednesday up 2 per cent, or S$0.005, to S$0.26, before the announcement.
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