ESR Reit to sell Tuas industrial building for S$9.9 million
It expects the divestment to be completed in Q1 2025
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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 – excluding one at 48 Pandan Road, which is held through a joint venture – in Singapore, Japan and Australia, as well as investments in three property funds in Australia.
Units of ESR Reit closed Wednesday up 2 per cent, or S$0.005, at S$0.26, before the announcement.
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