ESR-LOGOS REIT has divested a property at 2 Jalan Kilang Barat for $35.3 million, which is at a 21.7% premium to the asset’s valuation.
Edmund Tie & Company values the property at $29.0 million as at Sept 29. It has a gross floor area of 7,679 sqm and a remaining land lease tenure of about 39.8 years.
“The divestment of 2JKB is in line with our strategy to continue unlocking value from E-LOG’s non-core properties,” says the CEO of the REIT manager Adrian Chui.
“This provides us with greater financial flexibility to realise our growth aspirations, recalibrate E-LOG’s portfolio quality towards modern, in-demand and scalable assets, and optimise returns to our Unitholders over the longer term,” he adds.
The net proceeds from the divestment will be used to repay outstanding borrowings, finance upcoming asset enhancements, redevelopments and, or fund general working capital requirements.
Upon completion of the divestment, E-LOG’s portfolio will consist of 80 properties located across Singapore and Australia.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
E-LOG shares closed at 36 cents on Sept 29, unchanged for the day and down 26.04% year to date.
