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ESR-Reit to buy warehouse, enhance 2 assets and raise funds

It will invest S$38.6m to fund purchase of warehouse, S$45.7m to spruce up assets and sell units to raise up to S$150m

Fiona Lam

Fiona Lam

Published Mon, Jun 17, 2019 · 09:50 PM

Singapore

ESR-REIT opened the new week by unveiling a slew of initiatives: It will acquire a warehouse for S$225 million under a newly formed joint venture (JV) and undertake asset enhancement initiatives (AEIs) at two of its existing assets; it will also raise up to S$150 million in an equity fundraising to finance these transactions and to service existing debt.

The mainboard-listed real estate investment trust's (Reit) manager said in a filing on Monday that the warehouse acquisition will be made through PTC Logistics Hub, a limited liability partnership (LLP) in Singapore. ESR-Reit holds 49 per cent of the partnership interests in the joint-venture, and third-party logistics firm Poh Tiong Choon Logistics (PTCL), the other 51 per cent.

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