ESR-REIT Management announced a proposal to divest eight industrial properties located in Singapore, with a combined sale consideration of SGD 338.1 million. The transaction is expected to generate a net gain of approximately SGD 2.2 million for the real estate investment trust.
The properties identified for sale are part of ESR-REIT’s broader industrial portfolio in Singapore, which has historically formed a core component of its asset base. Over the years, the REIT has focused on owning and managing logistics facilities, business parks and industrial buildings that cater to manufacturing, warehousing and technology-related tenants.
The proposed divestment aligns with ESR-REIT’s strategy of active portfolio management.
In previous years, the trust has periodically sold non-core or mature assets to recycle capital into higher-yielding opportunities, reduce leverage, or support balance sheet resilience. Such transactions have also been used to manage exposure to older assets amid evolving tenant requirements and regulatory standards in Singapore’s industrial real estate market.
Market conditions have remained cautious, with higher financing costs and selective tenant demand shaping investment decisions across the industrial segment. Against this backdrop, asset recycling has become an important tool for listed REITs to maintain distribution stability and manage funding needs without aggressive expansion.
Further details on the individual assets, buyers, or completion timelines were not disclosed in the announcement. The proposed divestment remains subject to customary approvals and conditions.
