ESR Reit acquires Global Trade Logistics Centre in Jurong East for $112 mil

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/ EdgeProp Singapore
|
May 6, 2021 2:16 PM SGT
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SINGAPORE (EDGEPROP) - Real estate investment trust ESR-REIT has acquired a warehouse facility at 46A Tanjong Penjuru, called Global Trade Logistics Centre, from Montview Investments. CBRE Industrial & Logistics Singapore represented the seller in the transaction. According to an SGX filing by ESR-REIT, the purchase consideration amounts to $112 million.
The property is a five-storey industrial development with a gross floor area of about 524,000 sq ft. The space features flexible floorplates that cater to warehouse and logistics users.
Global-Trade-Logistics-Centre - EDGEPROP SINGAPORE
Global Trade Logistics Centre has a 30-year lease term from JTC commencing on 1 May 2006, and an option to renew for a further term of 14 years. (Picture: CBRE)
“Global Trade Logistics Centre is a highly specified ramp-up logistics facility that offers excellent connectivity to the existing Jurong and upcoming Tuas seaports, as well as the Central Business District. Underpinned by a fantastic tenant roster, GTLC is fully occupied and always enjoys strong demand from a wide variety of logistics users,” says Rimon Ambarchi, head of Industrial & Logistics, Singapore & Southeast Asia at CBRE, who was part of the team that brokered the deal.
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Demand for logistics assets has been growing over the past few months, says Ambarchi, boosted by the fact that occupancy rates for Grade A warehouse assets in Singapore has been close to 100% since early 2020.
“These assets generate superior defensive cash flows in a time of uncertainty and their appeal is further enhanced by the growing adoption of e-commerce and companies,” he says, and expects demand and rents of logistics assets to continue to climb over the foreseeable future.

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