$38.5m allocated for build-to-suit facility redevelopment: ESR-REIT
The redevelopment is expected to be finished in two years.
Singapore-based real estate investment trust, ESR-REIT, allocated about $38.5m to redevelop a build-to-suit facility at 21B Senoko for construction firm, NTS Components Singapore Pte Ltd (NTS).
In its company announcement, ESR-REIT said the redevelopment will be conducted in two phases to turn the property into a high-specification structure.
The first phase is projected to be completed in the first half of 2023 whilst phase two will be finished in the first quarter of 2024.
Under the terms of the redevelopment, ESR-REIT said the property will be leased to NTS on a triple net basis for 15 years with annual rental escalations. NTS will also shoulder payment of utilities, maintenance expenses, property tax, and land rent.
ESR-REIT CEO Adrian Chui said the redevelopment will not only boost their relationship with NTS but also help expand the firm’s footprint.
“It also demonstrates our dedication in achieving organic growth by converting old and dated general industrial properties into high-specifications assets that are relevant to today’s industrialists,” he added.