In a press release dated May 6, the manager notes that the acquisitions will strengthen ESR-REIT’s portfolio, including diversification into Australia and increased exposure to the logistics segment.
The manager of ESR-REIT is undertaking the purchase of a logistics building in Singapore, as well as the acquisition of a 10% stake in ESR Australia Logistics Partnership, for a total transaction cost of some $185 million. It also announced asset enhance initiatives (AEI) for two of its Singapore properties for an estimated total cost of some $80 million.
To help fund the acquisitions and the AEIs, it has launched a private placement of new units in the REIT to raise not more than $150 million in gross proceeds. ESR-REIT also obtained a A$68.5 million ($70.8 million) unsecured loan facility from RHB Bank.
