May 7, 2021
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The five-storey modern ramp-up logistics facility at 46A Tanjong Penjuru acquired by ESR-REIT has a gross floor area (GFA) of around 523,689 sq ft. Source: ESR-REIT

ESR-REIT is acquiring a logistics building in Singapore for S$119.6 million as well as a 10% stake in ESR Australia Logistics Partnership for A$60.5 million (S$62.4 million). It is also conducting a S$79.2 million asset enhancement initiatives (AEI) for two of its Singapore properties.

The Singapore acquisition will see ESR REIT purchase a five-storey modern ramp-up logistics facility at 46A Tanjong Penjuru.

With a land lease tenure of about 29 years, the facility has a gross floor area (GFA) of around 523,689 sq ft and is fully committed, with six tenants.

“Following the acquisition of 46A Tanjong Penjuru, ESR-REIT’s diversified portfolio will consist of 58 properties located across Singapore with a total GFA of approximately 15.6 million sq ft,” said ESR Funds Management (S) in an SGX filing on Thursday (6 May).

On the Australia acquisition, ESR Funds Management (S) revealed that ESR Australia Logistics Partnership is a private fund managed by ESR Asset Management (Australia), an indirect subsidiary of ESR-REIT’s sponsor, ESR Cayman Limited. Currently, ESR Queensland Hold Trust holds a 20% interest in the fund, while the remaining 80% is held by GIC.

It added that the fund has “33 income-producing properties, two land parcels for future development and another two properties which are currently under development”. The properties are located across New South Wales, Queensland, Victoria, South Australia and Western Australia,

Including professional and other fees and expenses, the total acquisition cost for the fund stands at around $64.9 million.

“Following the Australia acquisition, ESR-REIT and ESR Queensland Hold Trust will each hold a 10% interest in the fund, with GIC holding the remaining 80% interest in the fund.”

Meanwhile, ESR REIT’s manager has also identified 16 Tai Seng Street and 7000 AMK for asset enhancement to develop un-utilised plot ratio to increase GFA.

To fund the acquisitions and the AEIs, ESR Funds Management (S) has launched a private placement of new units in the REIT to raise over $150 million in gross proceeds. It also obtained a A$68.5 million ($71.1 million) unsecured loan facility from RHB Bank.

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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: 

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