ESR-Reit secures two new tenants at 8 Tuas South Lane

ESR-REIT has secured two new tenants at 8 Tuas South Lane. Collectively, the new tenants have leased 284,700 square feet (sq ft) at the property, the industrial Reit's (real estate investment trust) manager said on Tuesday.

The tenants are global logistics provider Pacific Integrated Logistics, and Royal's Engineering & Trading (S), a local company in the construction industry specialising in plumbing and electrical works.

Pacific Integrated Logistics operates in 16 locations across 11 countries, tapping the fast-expanding Euro-Asia rail freight network to provide customised logistics solutions. It has leased around 206,000 sq ft of space which equates to an estimated 26.9 per cent of the total net leasable area (NLA) of 8 Tuas South Lane.

Meanwhile, Royal's Engineering & Trading (S) is occupying around 78,700 sq ft, which translates to an estimated 10.3 per cent of the total NLA of the property.

8 Tuas South Lane is a multi-tenanted general industrial property in the west of Singapore, positioned at the gateway to Tuas Megaport, the world's largest container terminal.

Hyflux Membrane Manufacturing (S), a subsidiary of beleaguered water treatment firm Hyflux, is one of the tenants at the property.

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With the new tenants, the property's committed occupancy is now around 90.3 per cent, 58.3 per cent of which is currently leased to sub-tenants.

Its rental income exposure to Hyflux Membrane will be reduced from 2.8 per cent to 1.6 per cent on a portfolio basis.

Adrian Chui, chief executive and executive director of ESR-Reit's manager, said the tenants were secured against the backdrop of the ongoing Covid-19 pandemic.

"This is also part of our repositioning exercise to extract synergies in anticipation of the scheduled completion of the first phase of the Tuas Megaport," he said.

Mr Chui added that to date, the property continues to receive strong leasing interest and enquiries due to its close proximity to the upcoming port.

ESR-Reit units closed at 39.5 Singapore cents on Tuesday, up one cent or 2.6 per cent.