ESR-REIT is acquiring a ramp-up logistics facility located at 15 Greenwich Drive for SGD95.8 million (USD72 million).
The property is a four-storey property with ancillary offices, and located within the Tampines LogisPark, a dedicated logistics park in Singapore.
15 Greenwich Drive is located next to the Kallang Paya Lebar Expressway and features a gross floor area (GFA) of approximately 455,396 square feet.
It was valued at SGD96.4 million by Savills as at 9 April 2018, and total acquisition costs are expected to reach SGD99.9 million including professional fees.
The property sits on a JTC leasehold land with a lease tenure expiring in 2041, has an occupancy of 100%, and is currently tenanted to two companies, said the REIT.
When completed, the acquisition is expected ESR-REIT’s exposure to the logistics and warehouse sector from 22.6% to 27.1%, and increasing its portfolio’s occupancy from 90.7% to 91.2%.