ESR-Reit redeveloping industrial property in Senoko Loop for $39m

ESR-Reit is redeveloping its 21B Senoko Loop general industrial property into a build-to-suit, high-specification facility for existing master tenant NTS Components Singapore.

The redevelopment will cost about $38.5 million and is expected to be completed by the first quarter of 2024, the real estate investment trust's (Reit) manager said in a press statement yesterday.

This will raise the number of high-specification assets in ESR-Reit's portfolio to nine, representing 18.4 per cent of its portfolio valuation as at Dec 31 last year.

Mr Adrian Chui, chief executive and executive director of the manager, noted: "The redevelopment will increase the proportion of resilient new economy assets in our portfolio, enabling us to continue delivering long-term sustainable value to our unit holders."

21B Senoko Loop is located in the Woodlands industrial estate, an area with a limited supply of high-specification properties. It comprises a seven-storey factory-cum-dormitory block and a four-storey warehouse block with a combined gross floor area of 195,823 sq ft.

The property sits on a plot spanning 80,241 sq ft with a remaining tenure of about 31.1 years as at Dec 31 last year, making it attractive to undergo this redevelopment, the manager added.

The redevelopment will be executed in two phases, the first to be completed in the first half of next year and the second to follow about 10 months later. This is to allow NTS to better plan and start its business expansion and operations with minimal delay, said the manager.

The 21B Senoko Loop property will be leased to NTS on a triple net basis for 15 years with annual rental escalations. NTS will pay utilities, maintenance expenses, property tax and land rent. The property will also house NTS' sister company, NTS Mechatronics.

NTS Components Singapore is a wholly owned subsidiary of NTS Group Asia, which specialises in complex mechatronic assemblies and the manufacture of high-accuracy frames and sheet metal for the high-tech industry.

THE BUSINESS TIMES