Singapore REIT makes it largest ever acquisition

ESR-REIT has acquired an 80 percent stake in an entity that owns a leasehold interest in a Singapore office building for S$240 million ($178.2 million), marking its largest acquisition to date.

The remaining 20 percent interest in 7000 Ang Mo Kio Ave 5 is held by the seller, Ho Lee Properties.

The property is a high-specifications building located in the north-eastern part of Singapore and has an independent valuation of S$303 million ($225 million).

The property totals approximately1.07 million square feet, a net lettable area of about 834,783 square feet, and has an occupancy rate of 91.9 per cent.

ESR Cayman, a sponsor, will undertake to the manager.

Concurrently, the manager also proposed to undertake an equity fund-raising to issue up to 263.0 million new units in ESR-Reit to rebalance the Reit's capital structure.

The acquisition follows ESR purchase of 8 Tuas South Lane from Hyflux Membrane for S$111 million ($82 million). The seller was water treatment specialist Hyflux.