REIT Oracle

ESR Raises Equity, Continues Portfolio Improvement

in Company news

ESR REIT has issued multiple announcements :

  1. Investment into a new industrial property at 48 Pandan Road, Singapore ; through a 49% investment in a joint-venture. The property is a 6 storey general warehouse with a land tenure of 24 year leasehold. The aquisition cost for the trust is about S$44.4 millions and the manager expects it to be DPU accretive.

  2. An asset enhancement initiative on two existing properties, at a cost of about S$45.7 millions

  3. An equity raise of about $S150 millions to finance the above operations and repay some debt, with about S$75 million through a preferential offering to existing unit holders and S$75 million (with a S$25 millions upsize option) via private placement.

The manager expects the followings to decrease leverage from 42.0% to 40.3%.