SINGAPORE - The trustee of ESR-Reit is borrowing $150 million in two unsecured loans from CIMB Bank Berhad, Singapore branch, said the trust manager late Wednesday night (May 29) in an exchange filing.

RBC Investor Services trust Singapore, as trustee of the mainboard-listed real estate investment trust (Reit), entered into a $150 million unsecured loan facility agreement with the lender on May 29.

The facility consists of a $100 million unsecured term loan due 60 months from May 29, and a $50 million unsecured revolving loan due 36 months from the same date.

ESR-Reit will use the loans to refinance existing debt and to fund further asset acquisitions, enhancements and improvement of assets owned by ESR-Reit and its subsidiaries "for the time being", the manager said.

The loans will also go into other general working capital purposes.

ESR-Reit invests in income-producing industrial properties. As at March 31, it has a diversified portfolio of 57 properties across Singapore with a total gross floor area of about 14.1 million square feet and an aggregate property value of $3.03 billion.

Units of ESR-Reit closed down 0.5 cent or 0.9 per cent at 53.5 cents on Wednesday.