ESR-LOGOS REIT has entered into a contract of sale to divest 2 Tuas South Avenue 2 for SGD53.0 million.

The sale consideration represents a 35.2% premium above its valuation of SGD39.2 million.

The asset is a general industrial building within the Tuas Industrial Estate.

It has a gross floor area of 20,192 square metres.

The divestment is not expected to have a material impact on the REIT’s net asset value and distribution per unit for the financial year ending 31 December 2023.

Net proceeds from the divestment will be deployed to repay outstanding borrowings, finance potential acquisitions, asset enhancement initiatives and redevelopments or fund general working capital requirements, said the REIT.

The divestment is expected to settle by 4Q 2023.

Upon settlement, ESR-LOGOS REIT’s portfolio will consist of 75 properties across Singapore, Japan and Australia.

ESR-LOGOS REIT was last done on the Singapore Exchange at SGD0.27, which presently implies a distribution yield of 10.21% according to data on the Singapore REITs table.