ESR-REIT reduces exposure to Hyflux-related company with new leases

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ESR-REIT has further reduced its exposure to Hyflux Membranes, by securing two new leases at 8 Tuas South Lane.

Hyflux Membranes is linked to embattled environmental solutions company Hyflux Limited, and previously occupied the property.

Related: ESR-REIT details possible impact from Hyflux default

The new leases have been signed with Pacific Integrated Logistics and Royal's Engineering & Trading.

The companies have collectively leased an aggregate of 284,700 square feet of space at the property.

Pacific Integrated Logistics is a global logistics provider operating in 16 locations across 11 countries.

It has leased approximately 206,000 square feet of space which equates to an estimated 26.9% of the total net leasable area (NLA) of the property.

Meanwhile, Royal's Engineering & Trading is a local company in the construction industry specialising in plumbing and electrical works.

It has leased approximately 78,700 square feet, with an estimated 10.3% of the total NLA of the property.

With the new tenants, the committed occupancy for the property is now approximately 90.3% of which 58.3% is currently leased to sub-tenants.

Correspondingly, rental income exposure to Hyflux Membranes will be reduced from 2.8% to 1.6% on a portfolio basis.

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