ESR-LOGOS REIT (E-LOG) has signed a new 20-year master lease with PharmaGend Global Medical Services Pte. Ltd. at 3 Tuas South Ave 4.
PharmaGend is a Singapore-based integrated drug products manufacturing platform while 3 Tuas South Ave 4 is a general industrial property that’s located at the entrance of Tuas Biomedical Park. The property, which has a remaining land tenure of 35.3 years, has three storeys of pharmaceutical manufacturing facility comprising production, laboratory, warehousing spaces, canteen with ancillary office. The property has a gross floor area (GFA) of 29,449 sqm (316,986.4 sq ft) and sits on a land area of 59,708 sqm. The site also has an unutilised plot ratio which could yield an additional 19,000 sqm of space for future expansion plans.
The newly-signed lease comes with built-in rental escalations and represents a contribution of about 1.0% of E-LOG’s portfolio rental income as at Sept 30, 2023. It also extends the REIT’s weighted average lease expiry (WALE) to 3.5 years from 3.4 years previously. Furthermore, the lease represents a positive rental growth of over 35% over the previous contract.
“We would like to extend a warm welcome to PharmaGend into E-LOG’s growing network of partners. This landmark agreement is a testament to E-LOG’s commitment to fostering enduring partnerships and underscores our dedication to provide best-in-class facilities with high-specifications tailored to the evolving needs of the pharmaceutical and life sciences industry,” says Adrian Chui, CEO and executive director of the manager.
“The agreement not only signifies the longevity of our commitment but also highlights the confidence our valued tenants have in our ability to provide an environment which is conducive to their innovation and business growth,” he adds.
“Thanks to the invaluable support and expertise provided by E-LOG, our establishment in this strategically significant location has been remarkably smooth and efficient. Our partnership with E-LOG’s extends beyond a simple lease agreement as it serves as a vital platform for our global expansion plans,” says Danian Zhu, president of PharmaGend.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
“We are determined to grow our business in Singapore and aspire to position PharmaGend as a leading provider of pharmaceutical development and formulation services, a key technique to develop innovative and complex drug products,” he adds. “Leveraging E-LOG’s support and our shareholders’ extensive network, we aim to extend our reach to new customers across different continents and regions, such as Europe, the United States, Southeast Asia and Greater China.”
As at 9.15am, units in E-LOG are trading flat at 32 cents.
