ESR-LOGOS REIT is pressing on with the plan to reconstitute its portfolio for the ‘new economy’ sectors.

The REIT disclosed on 19 December that it is divesting 70 Seletar Aerospace View in Singapore for SGD7.1 million.

The divestment consideration represents a premium of 4.8% when compared to the valuation of SGD6.8 million as assessed by Knight Frank as at 1 December 2022.

70 Seletar Aerospace View is an aerospace training facility with a gross floor area of 4,992 square metres.

The asset is approximately 8 years old and has a remaining land lease tenure of about 19 years, said the REIT.

The divestment is not expected to have a material impact on ESR-LOGOS REIT’s net asset value and distribution per unit for the financial year ending 31 December 2022, it added.

Net proceeds from the divestment will be deployed to repay outstanding borrowings or fund general working capital requirements.

Upon settlement, ESR-LOGOS REIT’s portfolio will consist of 81 assets across Singapore, Japan and Australia, as well as investments in three property funds in Australia.

The divestment is expected to be completed in 2Q 2023.

ESR-LOGOS REIT was last recorded on the SGX at SGD0.375, which presently implies a distribution yield of 7.79% according to data on the Singapore REITs table.

Related: ESR-LOGOS REIT provides rationale behind current gearing levels