Singapore-listed ESR-Logos REIT (E-LOG) has sold seven logistics assets, mostly in Singapore with one in Australia, raising a total of S$337m (€228m).
Adrian Chui, chief executive officer and executive director of the manager, said the divestment of the non-core asset was part of the real estate investment trust’s ongoing portfolio rejuvenation and capital recycling strategy.
The objective was “to strategically recalibrate” E- LOG to capitalise on emerging market opportunities specifically towards new economy assets, Chiu said.
Proceeds from the asset disposals would result in the vehicle’s gearing reducing to 33.6% from 41.8%.
“This significant debt headroom will facilitate E-LOG to recapitalise for growth in a very timely environment as asset valuations begin to correct, and to improve our portfolio quality with in-demand new economy assets,” he said.
The divestments marked a strategic move to unlock value for unitholders and to position the trust well for sustainable long-term growth, he added.
To read the latest edition of the latest IPE Real Assets magazine click here.