ESR-Logos Reit sells Pandan Logistics Hub above valuation

The logistics hub will sell for $43.5m.

The manager of ESR-Logos Reit announced that it will be divesting Pandan Logistics Hub in Singapore.

According to the announcement, HSBC Institutional Trust Services (Singapore) Limited, as a trusty of ALOG Trust, a sub-trust of ESR-Logos Reit, has entered into a contract of sale to divest the property to ST Logistics Pte, Ltd for a sale consideration of $43.5m

This represents a 15.1% premium to the valuation of the property with a valuation of $37.8m. It has a land lease balance of 17.2 years as of 29 July.

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ESR-Logos Reit said the divestment of the property will have no material impact on its net asset value and distribution per unit for the financial year ending 31 December 2022. Net proceeds will be used to repay outstanding borrowings, finance upcoming assets enhancements or redevelopments, and fund general working capital requirements.

The divestment is expected to be completed in Q4 2022. Completion of the sale of the property is subject to approval by JTC Corporation.