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 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.
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.