This boosted the REIT’s exposure to the logistics sector to 27.1%.
Industrial property firm ESR REIT bought 15 Greenwich Drive, a modern ramp-up logistics facility, for $95.8m.
According to an announcement, the acquisition is expected to boost ESR-REIT’s portfolio, expanding the REIT’s exposure to the Logistics/Warehouse sector from 22.6% to 27.1%, and increasing its portfolio’s occupancy from 90.7% to 91.2%.
The four-storey facility is 455,395 sqft in size, has ancillary offices, and is located within Tampines LogisPark, which is “one of the key industrial zones where there is limited supply and available space,” the REIT said.
The facility has 30-year lease tenure expiring in 2041. The property has an occupancy of 100% and is currently tenanted to two tenants.
The site also has easy access to Seletar Aerospace Park and Changi Airport via major expressways. It is also near Paya Lebar Airbase.
ESR REIT CEO Adrian Chui commented, “The addition of this quality asset enables us to leverage on this demand and will provide further income diversification from a wider base of quality tenants by adding leading logistics companies to our existing tenant network. This is in line with our overall portfolio enhancement strategy of creating a more balanced, modern and diversified mix of assets in order to generate stable and recurring returns for our Unitholders.”
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