ESR REIT to buy 8 Tuas South Lane for $95m

It wants to tap on its proximity to the future Tuas Megaport.

ESR-REIT will buy 8 Tuas South Lane from Hyflux Membrane Manufacturing Singapore Pte. Ltd. (Hyflux) for $95m.

According to an announcement, ESR-REIT wants to tap on the property's proximity to the future Tuas Megaport, which is expected to be the largest container terminal globally.

"Logistics, warehouse operators and manufacturers located near the megaport are expected to benefit from faster turnaround time. The transformation of the Tuas area for port development is also expected to increase the attractiveness of the Property to enjoy upside potential," ESR-REIT said.

8 Tuas South Lane has five detached factories, one block of eight-storey warehouse and four blocks of dormitory buildings. It has a gross floor area (GFA) of 72,569 sqm and a remaining land tenure of 20 years.

Hyflux will leaseback a majority of the space for 15 years once the acquisition is completed.