The manager of ESR-REIT has divested 28 Senoko Drive, a single-storey general industrial building, for a sale consideration of $12.0 million.
The REIT entered into an agreement with Tat Seng Packaging on Jan 10.
The divestment of the property represents an 8.4% discount to the fair value of the property at $13.1 million. It is not expected to have a material impact on ESR-REIT’s net asset value (NAV) and net property income (NPI) for the FY ending Dec 31.
The property was acquired by ESR-REIT in 2007 at the same sale consideration of $12.0 million. It has a leasehold tenure of 30 years from Dec 16, 2009, which means it currently has a remaining land lease tenure of around 18 years as at Dec 31, 2021. The property’s gross floor area (GFA) stands at around 159,338 sq ft.
Following the divestment, ESR-REIT will have 55 properties in its portfolio located across Singapore with a total GFA of 15.2 million sq ft.
The divestment is subject to approval by JTC Corporation and is expected to be completed by 1QFY2022.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
Units in ESR-REIT and shares in Tat Seng closed at 47.5 cents and 75.5 cents respectively on Jan 10.
Photo: The Edge Singapore
