Brookfield Asset Management has agreed to acquire a 2.4m sqft portfolio of eight logistics and industrial properties in Singapore for S$338m (€223m) from ESR REIT.
The assets are located within Singapore’s premier logistics and manufacturing hubs, including Jurong, Tuas, Pioneer and Paya Lebar.
The facilities are located on leasehold land with an average remaining land lease of 22.4 years.
Andrew Burych, Brookfield managing partner and head of East Asia real estate, said: “With Singapore’s strategic location, connectivity and infrastructure, we have high conviction that demand for prime logistics and industrial space will continue to grow in Singapore, supported by long-term government policies.
“This investment also underlines our continued commitment to growing our logistics and industrial presence across Asia-Pacific.”
The portfolio, which is being acquired under the group’s opportunistic strategy, is Brookfield’s second real estate investment in the city state after completing the acquisition of three business parks and high-tech industrial assets in May for A$535.4m from Mapletree Industrial Trust.
SGX-listed ESR REIT, managed by ESR Group, said the assets would be transacted at 2% premium to the independent valuation at 30 November 2025.
Adrian Chui, CEO and executive director of ESR REIT’s manager, said: “The proposed divestment represents a disciplined and strategic step in our ongoing portfolio rejuvenation and capital recycling efforts.
“By realising value from non-core assets, we continue to reduce the impact of land lease decay in our net asset value. Through enhancing our balance sheet strength, ESR-REIT is better positioned to pursue new, value-accretive new economy opportunities through asset enhancement initiatives, redevelopments and acquisitions.”
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