ESR-Reit to divest Pioneer Road warehouse for S$32 million to GKE Corp
The deal is expected to be completed in Q4 2026
ESR Real Estate Investment Trust (Reit) has agreed to sell its 30 Pioneer Road warehouse property for S$32 million to GKE Corp. The four-storey warehouse, located within the Jurong Industrial Estate, also includes a seven-storey ancillary office and has a gross floor area of 26,114 square metres. The sale is set to be finalized in the fourth quarter of 2026, with the resulting net proceeds intended for outstanding loans, potential acquisitions, asset enhancement initiatives, and general working capital needs.
ESR-Reit's management believes the divestment aligns with its strategy to improve portfolio quality and returns by recycling capital from shorter-term leases in Singapore and deploying funds into asset enhancement and acquisitions in its international markets. Following the transaction, ESR-Reit's portfolio will consist of 66 properties in Singapore, Japan, and Australia, with its investments also including three property funds in Australia.
GKE Corp, the purchaser, currently utilizes the property for its business and will retain control over it until the end of its JTC lease in February 2037, thereby reducing rental obligations and avoiding potential relocation costs. The divestment is expected to have minimal impact on ESR-Reit's net asset value and distribution per unit for the fiscal year 2026.
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