SGX–listed ESR-Logos REIT is divesting an asset in Singapore to ST Logistics for S$43.5m (€31m).

The sale price of the asset, located at 49 Pandan Road, in Singapore’s west, has been struck at a 15.1% premium to the valuation of the property, which carries a balance of 17.2 years left on its land lease.

ESR-Logos REIT said the net proceeds from the sale would be deployed to repay outstanding borrowings, finance upcoming asset enhancements/redevelopments and/or fund general working capital requirements.

ESR-Logos REIT’s CEO Adrian Chui said the divestment of the non-core asset would provide the REIT with the additional financial flexibility to pursue value opportunities with potentially higher total returns.

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