ESR-LOGOS REIT buys assets in Japan, Singapore for $576 mln (updated)

ESR

31/07/2024 24:26

(Updates with further details from paragraph 2 onwards)
       July 31 (Reuters) - Singapore-based ESR-LOGOS REIT
 ESRO.SI  said on Wednesday it has bought the entire stake in a
Japanese logistics facility and a 51% interest in a
manufacturing facility in Singapore, in a deal valued at S$772.6
million ($575.75 million).
    The acquisitions were made at attractive net property income
yields and at a 2.3% discount to the average valuation of each
facility, the company said. 
        ESR-LOGOS REIT expects the assets to be accretive for
distribution per unit to unitholders. 
  
        The Singaporean facility is located close to the Tuas
Mega Port. "Its strategic location will benefit from the
increased activity and development in the area, providing us
with a quality asset that is well-positioned to capitalise on
the growth of the logistics and industrial sectors as port
activity increases," the company said in a statement. 
  
        Meanwhile, the Japanese acquisition will increase the
company's logistics asset in Japan from 3.7% to 8.9%. 
  
        The acquisition will be financed by a mix of green debt
financing and proceeds to be raised via a preferential offering
of new units backstopped by ESR Group  1821.HK , the company
added.  
        
  

($1 = 1.3419 Singapore dollars)

 (Reporting by Sneha Kumar; editing by Alan Barona)
 ((Sneha.Kumar@thomsonreuters.com))