ESR-LOGOS REIT is divesting seven assets across Singapore and Australia for a total consideration of approximately SGD337.0 million.

The assets are a portfolio of five non-core assets in Singapore, 22 Chin Bee Drive in Singapore, and 51 Musgrave Road in Australia.

The non-core assets are being divested at a discount to valuation, while 22 Chin Bee Drive and 51 Musgrave Road are being sold at premiums.

CEO of the REIT’s manager, Adrian Chui, has described the divestments as another milestone in its pivot towards ‘new economy’ assets.

The proposed divestments will result in the REIT’s gearing reducing to 33.6% from above 40% presently.

Accordingly, its weighted average lease expiry (WALE) will also increase from 3.2 years as at 31 March 2023 to 3.3 years.

ESR-LOGOS REIT was last done on the Singapore Exchange at SGD0.32, which presently implied a distribution yield of 9.38% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.