Key ESR-Logos Reit tenant renews lease at 20% increase

THE manager of ESR-Logos Real Estate Investment Trust (ESR-Logos Reit) : J91U 0% on Friday (Apr 14) said that Ceva Logistics Singapore renewed its property’s lease for a three-year term, at an increased rate of 20 per cent.

The logistics company, the anchor tenant of the property located at 15 Greenwich Drive, occupies 31,230 square metres (sq m) – three-quarters of the property by net lettable area. This is Ceva’s largest leased facility across its eight sites in Singapore.

The logistics company remains one of the top 20 tenants by effective gross rent in ESR-Logos Reit’s portfolio. 

“The strong positive rental reversion of 20 per cent from Ceva’s lease renewal demonstrates the continued resilience and growth in the logistics sector, reinforcing our strategy for ESR-Logos Reit to pivot towards new economy assets,” said Adrian Chui, chief executive and executive director of the Reit’s manager.

He added that the leasing market for new-economy assets remained robust during the first quarter of this year, and he expects the logistics and warehouse segment to continue driving positive rental reversion for the Reit’s portfolio.

The property at 15 Greenwich Drive is located in Tampines LogisPark. It is multi-tenanted, fully occupied and has a gross floor area of 42,307 sq m.

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Units of the Reit closed flat at S$0.33 on Thursday.