ESR-LOGOS REIT to divest 7 non-core assets worth $337m
Six assets are in Singapore whilst one is in Australia.
ESR-LOGOS REIT proposed to divest six non-core assets in Singapore and one in Australia with a total value of $337m.
In a disclosure, the ESR-LOGOS REIT manager said the portfolio to be divested in Singapore includes five non-core assets worth $313.5m and the property at 22 Chin Bee Drive which is valued at $13.8m.
The property in Australia is located at 51 Musgrave Road and is worth around $9.8m (A$10.8m).
The net proceeds from the proposed divestment is expected to be around $322.4m.
“The net proceeds of the Proposed Divestments will provide E-LOG with the flexibility to optimise its capital structure and recycle capital towards higher quality New Economy assets and to finance upcoming asset enhancement initiatives and/or redevelopment works given the favourable secular trends impacting how goods are produced, delivered and consumed, in particular driving the demand for logistics facilities,” the statement read.
Post-divestment, this will reduce ESR–LOGOS’ gearing to 33.6% for the financial year.
$0.9065 = A$1