August 2, 2022 – ESR- LOGOS REIT announced that HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of ALOG Trust, a sub-trust of ESR-LOGOS REIT, has entered into a contract of sale to divest 49 Pandan Road, Singapore to ST Logistics Pte. Ltd. for a sale consideration of S$43.5 million (excluding divestment costs and applicable goods and services tax).
The Sale Consideration represents a 15.1% premium to the valuation of the Property of S$37.8 million1 with a land lease balance of 17.2 years.
The divestment of the Property is not expected to have a material impact on ESR-LOGOS REIT’s net asset value and distribution per unit for the financial year ending 31 December 2022.
The net proceeds from the Divestment will be deployed to repay outstanding borrowings, finance upcoming asset enhancements/redevelopments and/or fund general working capital requirements.
Mr. Adrian Chui, Chief Executive Officer and Executive Director of the Manager, said, “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.”
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