ESR-REIT, announced on 14 December that it has acquired an 80% stake in 7000 Ang Mo Kio Avenue 5, an asset in Northeast Singapore, for SGD240 million.
The property, which has been described as a high-spec industrial property with a promising development potential, is the REIT’s largest acquisition to-date.
“Demand for high-specifications space has been on the rise, in tandem with the increasingly sophisticated requirements from industrial tenants and the government’s push towards the industry’s adoption of advanced manufacturing technologies”, said Adrian Chui, CEO of the REIT’s manager, in a statement on the acquisition.
“The acquisition of this strategically located asset will ensure that ESR-REIT is well-positioned to ride on the growth of high-specifications spaces and reinforces our ability to secure yield accretive properties that will create stable long-term value for our unitholders”, he added.
However since the announcement, units of ESR-REIT have languished in the SGD0.56-SGD0.55 range, outside the range of brokers’ target price estimates.