ESR-LOGOS REIT divests 2 Tuas South Avenue 2 for $53m

It will use net proceeds from the divestment to repay outstanding borrowings, amongst others.

ESR-LOGOS REIT has divested its general industrial building at  2 Tuas South Avenue 2 for $53m.

In a bourse filing, the REIT’s manager said the sale consideration represents a 35.2% premium above its valuation of $39.2m.

The REIT will deploy the net proceeds from the divestment to repay outstanding borrowings, finance potential acquisitions, asset enhancement initiatives and redevelopments, and/or fund general working capital requirements.

Upon completion of the divestment, E-LOG’s portfolio will consist of 75 properties, excluding 48 Pandan Road held through a joint venture, located across Singapore, Japan and Australia, as well as investments in three property funds in Australia. 

The divestment is expected to be completed in 4Q2023 and is subject to JTC Corporation’s approval.  It will not have a material impact on E-LOG’s net asset value and distribution per unit for the financial year ending 31 December.