A site visit with representatives from ESR-LOGOS REIT’s manager started with ESR@BizPark Changi. The property is situated at the exit from and entrance to the Expo MRT, an interchange station on the Downtown and East-West lines. Its location, virtually above the MRT station, is in the heart of the Changi Business Park. The property comprises a hotel, convention centre, office space and retail. Following the reopening of Singapore, the hotel has been more or less fully booked, while the office space is around 60% committed and occupied. The anchor tenant is NUTC Fairprice.
E-LOG took advantage of the lockdown during Covid for asset enhancement initiatives which were completed in 2021. Lifts have been modernized. Entry to the office towers are done digitally, and covered walkways to the MRT station have been built.
Next on the trip was the construction site that will be 7002 Ang Mo Kio Avenue 5 when it completes in 3Q2023 with temporary occupation permit expected in July 2023. The current property at 7000 AMK Ave 5 has gross floor area of around one million sq ft. The unused GFA is around 500 sq ft to 600 sq ft. The main tenants currently are AMS with 500,000 sq ft, a data centre occupies 170,000 sq ft and a precision engineering company is the third largest tenant. AMS is intending to renew its lease for five years, with positive rental reversions for the property.
E-LOG has announced a major AEI, building a 260,000 high-specification property on what was a carpark. The new building, 7002 AMK Ave 5 has high floor loading, high ceilings, and a power station that could deliver higher power supply if required. Hence, 7002 AMK is suitable for a data centre tenant or a high-tech tenant. According to the asset and property managers of 7000 AMK, E-LOG has received several inquiries for space. Hence, although 7002 AMK can be termed a speculative build – that is – it is being built without a committed tenant, it is likely to be well-committed by the time of TOP.
PTC Logistics Hub, situated at 48 Pandan Road is owned jointly by Poh Tiong Choon and E-LOG in a 51:49 ratio. In July 2019, E-LOG announced it had entered into a joint venture with Poh Tiong Choon to acquire 48 Pandan Road for $225.0 million. This was funded through a $40.2 million contribution by PTC, a $38.6 million contribution by E-LOG and debt of $146.2 million.
The property - PTC Logistics Hub is a 6-storey ramp-up warehouse with rooftop parking. The property includes an ancillary dormitory, a temporary ancillary canteen and an ancillary office which serves as PTC’s corporate headquarters. The property was originally a single-story warehouse that was redeveloped. It is operated mainly as a chemical warehouse that stores additives, operated partly by machines and a smattering of human beings.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
The land lease of the property is 24 years 4 months commencing from July 1, 2019. At the time of the acquisition in 2019, the property was accretive to distribution per unit (DPU) and neutral for net asset value (NAV).
