ESR-Logos Reit to divest aerospace training facility for S$7.1 million, above valuation
Tessa Oh
ESR-Logos Reit will divest an aerospace training facility for S$7.1 million, a 4.8 per cent premium to valuation, the Reit manager announced in a bourse filing on Monday (Dec 19).
The net proceeds from the divestment will be deployed to repay outstanding borrowings and/or fund general working capital requirements, said the manager.
The divestment is not expected to have a material impact on ESR-Logos’ net asset value and distribution per unit for the financial year ending Dec 31.
The transaction is expected to be completed in the second quarter of 2023, subject to JTC Corporation’s approval.
Upon completion of the sale, ESR-Logos’ portfolio will consist of 81 properties across Singapore, Japan and Australia, as well as investments in three property funds in Australia.
The aerospace training facility is located at 70 Seletar Aerospace View and has a gross floor area of 4,992 square metres. It is about eight years old and has a remaining lease tenure of around 19 years as at Sep 30, 2022.
Units of ESR-Logos Reit closed 2.6 per cent or S$0.01 lower at S$0.375 on Monday.
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