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ESR-REIT Management has proposed the divestment of eight industrial properties in Singapore for an aggregate consideration of SGD 338.1 million. The proposed transaction is expected to result in a net gain of about SGD 2.2 million. The assets form part of the REIT’s local industrial portfolio, which spans logistics, business parks and general industrial facilities. The move reflects ESR-REIT’s ongoing capital management approach, focused on portfolio optimisation, recycling of mature assets and strengthening long-term income stability in a market facing cost and interest rate pressures.
ESR-REIT Management announced a proposal to divest eight industrial properties located in Singapore, with a combined sale consideration of SGD 338.1 million. The transaction is expected to generate a net gain of approximately SGD 2.2 million for the real estate investment trust. Advertisement
The properties identified for sale are part of ESR-REIT’s broader industrial portfolio in Singapore, which has historically formed a core component of its asset base. Over the years, the REIT has focused on owning and managing logistics facilities, business parks and industrial buildings that cater to manufacturing, warehousing and technology-related tenants.
The proposed divestment aligns with ESR-REIT’s strategy of active portfolio management. In previous years, the trust has periodically sold non-core or mature assets to recycle capital into higher-yielding opportunities, reduce leverage, or support balance sheet resilience. Such transactions have also been used to manage exposure to older assets amid evolving tenant requirements and regulatory standards in Singapore’s industrial real estate market.
Market conditions have remained cautious, with higher financing costs and selective tenant demand shaping investment decisions across the industrial segment. Against this backdrop, asset recycling has become an important tool for listed REITs to maintain distribution stability and manage funding needs without aggressive expansion.
Further details on the individual assets, buyers, or completion timelines were not disclosed in the announcement. The proposed divestment remains subject to customary approvals and conditions.
Source Reuters
5th Jun, 2025
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