ESR-Reit divests two "non-core" assets for $53m

ESR-Reit divests of an industrial building and a warehouse for additional funds.

ESR Funds Management Limited, the manager of ESR-Reit, has announced the divestment of two properties from its portfolio.

In a bourse disclosure, ESR said these properties, general industrial building 11 Serangoon North Avenue 5, and multi-tenanted warehouse 3C Toh Guan Road East, would net the company an approximate $53m.

"This divestment is in line withour ongoingportfolio optimisationstrategy to monetise non-core assets which can be channelled towards value creation opportunities. The Divestmentwill allow us toimprove the quality of ESR-REIT’s portfolio andoptimise returns for Unitholders," said ESR Reit CEO and Executive Director Adrian Chui.

Following the divestment, ESR-Reit's porfolio will consist of 55 Singaporea properties with a total gross floor of 14.8 million square feet.

The divestment is expected for completion in the second half of the year, or as soon as JTC Corporation grants the necessary approval for the proposed sale.