SINGAPORE - ESR-Logos Reit is divesting a logistics property in Australia for A$65.5 million (S$57.9 million).

On April 11, the real estate investment trust’s (Reit) manager said its sale consideration represents a 7.4 per cent premium to its independent valuation of A$61 million as at Dec 31, 2023.

It also excludes divestment costs and applicable goods and services tax, and is subject to the terms and conditions of the contract.

Sitting on freehold land, the logistics property is located at 182-198 Maidstone Street in Altona, Victoria. It has a total net lettable area of 37,862 sq m.

Net proceeds from the divestment will be used to repay the Reit’s outstanding borrowings, finance potential acquisitions, and for asset improvement and redevelopment, in addition to potentially funding general working capital needs.

The manager noted that the divestment is not expected to have a material impact on the Reit’s net asset value and distribution per unit for the financial year ending Dec 31, 2024.

Upon completion of the divestment, the Reit’s portfolio will consist of 71 properties across Singapore, Japan and Australia, alongside investments in three property funds in Australia. This excludes the 48 Pandan Road property, which is held by ESR-Logos Reit’s joint venture.

Units of the Reit closed 0.5 cent, or 1.67 per cent, higher at 30.5 cents on April 11. THE BUSINESS TIMES