ESR-REIT signs new tenants at 8 Tuas South Lane

The two tenants have leased 26.9% and 10.3% of total net leasable area.

ESR-REIT has secured two news tenants as Pacific Integrated Logistics and Royal's Engineering & Trading collectively leased an aggregate 284,700 sqft of space at 8 Tuas South Lane, according to an announcement.

Global logistics provider Pacific Integrated Logistics has leased approximately 206,000 sqft of space which equates to an estimated 26.9% of the total net leasable area (NLA) of the property, whilst construction company Royal's Engineering & Trading will occupy approximately 78,700 sqft, or 10.3% of the total NLA.

With the new tenants, the committed occupancy for the 8 Tuas South Lane is now approximately 90.3%, of which 58.3% is currently leased to sub-tenants. Correspondingly, the rental income exposure to Hyflux Membrane Manufacturing will be reduced from 2.8% to 1.6% on a portfolio basis.

ESR-REIT manager’s CEO and executive director Adrian Chui said that the lease is a further testament to its proactive management to diversify the tenant concentration risks and strengthen the property’s tenant mix and quality.

“This is part of our repositioning exercise to extract synergies in anticipation of the scheduled completion of the first phase of the Tuas Megaport. To date, the property continues to receive strong leasing interest and enquiries due to its close proximity to the upcoming port,” he added.