[SINGAPORE] The manager of ESR-Reit on Tuesday (Jul 28) announced that it has entered into a contract of sale to divest 12 Ang Mo Kio Street 65 for S$33.3 million, excluding divestment costs and applicable goods and services tax.
The sale consideration represents a 2.1 per cent premium over the property’s independent valuation of S$32.6 million as at Jun 30. The valuation was conducted by Edmund Tie & Company (SEA), utilising both the income capitalisation method and discounted cash-flow analysis.
The manager stated that the divestment is not expected to have a material impact on the real estate investment trust’s (Reit) net asset value and distribution per unit for the financial year ending Dec 31, 2026.
The net proceeds from the transaction will be deployed to repay outstanding borrowings, finance potential acquisitions, fund asset enhancement initiatives and redevelopments, and support general working capital requirements, said the Reit’s manager.
Property overview
Located at 12 Ang Mo Kio Street 65, the high-specifications industrial building spans a gross floor area of 16,754 square metres. The property, which has a building age of about 30 years, is zoned as “Business 1” under the Master Plan 2025.
As at Jun 30, the site has a remaining land lease of about 24 years.
The divestment is slated for completion in the third quarter of 2026.
Upon completion, ESR-Reit’s diversified portfolio will be reduced from 62 to 61 properties, excluding 48 Pandan Road, which is held through a joint venture. These properties are spread across the developed markets of Singapore, Japan and Australia, in addition to investments in three Australian property funds.
Currently, ESR-Reit holds interests in a diversified portfolio of logistics properties, high-specifications industrial properties, business parks and general industrial properties, with total assets amounting to about S$5.6 billion.
Units of ESR-Reit closed 1.2 per cent or S$0.03 higher at S$2.48 on Monday.