ESR-Logos Reit to divest Pandan Logistics Hub above valuation

ESR-Logos Reit has announced that it will divest Pandan Logistics Hub for S$43.5 million, a 15.1 per cent premium to valuation, to ST Logistics.

The property, located in the west of Singapore, is 5-storey ramp-up warehouse with a total gross floor area of 30,576 square metres. The warehouse has a land lease balance of 17.2 years.

This divestment is not expected to have a material impact on ESR-Logos Reit’s net asset value or distribution for FY 2022. The net proceeds will be used to repay outstanding borrowings, finance upcoming asset enhancements and redevelopments, and fund general working capital.

The sale is expected to be completed by Q4 2022, and is subject to approval by JTC Corporation.

“As we continue our portfolio rejuvenation efforts to focus on modern and in-demand New Economy assets, this non- core asset divestment will provide us with additional financial flexibility to pursue value opportunities with potentially higher total returns and deliver long term sustainable value to our unitholders,” said Adrain Chui, chief executive officer and executive director, ESR-Logos Reit manager.

Units of ESR-Logos Reit closed unchanged at S$0.42 on Jul 29.