Singapore based Real Estate Investment Company, ESR-Reit has struck a conditional agreement with vendor Tampines Distrihub for the acquisition of a logistics facility of S$95.8mn worth.
The facility is a four-storey multi-tenanted building with subsidiary offices located within Tampines LogisPark, and had alone cost S$96.4mn. The acquisition totals to S$99.9mn including stamp duties of S$2.9mn and S$1.2mn in other transaction expenses.
Mr Adrian Chui, CEO of the Manager, said: “Logistics real estate needs have been revolutionised given the growing demand for high-quality modern ramp-up facilities in Singapore and the Southeast Asia region to support the Fast Moving Consumer Goods (‘FMCG’) and the e-commerce logistics sectors. The Singapore Government’s plan to transform and grow Singapore’s logistics sector through the Logistics Industry Transformation Map has also provided a conducive environment for the industry to enter the next stage of growth.
“The addition of this quality asset enables us to leverage on this demand and will provide further income diversification from a wider base of quality tenants by adding leading logistics companies to our existing tenant network. This is in line with our overall portfolio enhancement strategy of creating a more balanced, modern and diversified mix of assets in order to generate stable and recurring returns for our Unitholders.”