ESR-Logos REIT (E-LOG) is buying a distribution centre in Japan and a 51% interest in a warehouse/manufacturing complex in Singapore for a total of S$772.6m (€463m).
The Singapore-listed vehicle is buying ESR Yatomi Kisosaki Distribution Centre (DC) in Nagoya, Japan. It will also acquire a 51% interest in a manufacturing facility with new ramp-up logistics warehouses in Tuas in the west of Singapore.
ESR Kisosaki DC is being acquired at a 2.3% discount to its average valuation of JPY38.9bn (€238.8m) in the Nagoya area and E-LOG will outlay approximately S$444.6m for the Singapore property.
E-LOG said the acquisition of the assets developed by its sponsor, ESR Group, was part of the strategy to accelerate its transformation into a leading Asia Pacific New Economy real estate investment trust.
Adrian Chui, CEO and executive director of the manager of E-LOG, said these acquisitions would provide the next phase of growth for the trust and they “align seamlessly with E-LOG’s 4R Strategy” of rejuvenation, recapitalisation, recycling of assets and reinforcing its sponsor’s commitment.
“By integrating these high-quality assets, E-LOG’s portfolio will increasingly pivot towards future-ready green assets, reinforcing our commitment to sustainability and long-term value,” said Chui.
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