ESR-REIT Divests 28 Senoko Drive For S$12 Million (US$8.86 Million)
January 11, 2021 – The manager of ESR-REIT announced that RBC Investor Services Trust Singapore Limited (in its capacity as trustee of ESR-REIT) has entered into an agreement with Tat Seng Packaging Group Ltd to divest 28 Senoko Drive , a general industrial building, for a sale consideration of S$12 million (US$8.86 million) (excluding divestment costs and applicable goods and services tax).
Mr. Adrian Chui, Chief Executive Officer and Executive Director of the Manager, said, “In line with our portfolio optimization strategy, this Divestment represents an opportunity for us to divest one of our dated and non-core assets where there are limited redevelopment and/or asset enhancement opportunities due to the short remaining land lease.:
“The Divestment allows ESR-REIT to free up capital for growth and higher value opportunities, thus improving the quality of ESR-REIT’s portfolio while optimising Unitholders’ returns.”
The divestment of the Property, which was acquired in 2007 at the same Sale Consideration of S$12.0 million, represents an 8.4% discount to the fair value of the Property at S$13.1 million, and is not expected to have a material impact on ESR-REIT’s net asset value and net property income for the financial year ending 31 December 2022.
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