ESR-REIT Divests Hotel Strata Lot at ESR BizPark @ Changi for S\$101 Million

Key Highlights and Strategic Implications for Investors

ESR-REIT Management (S) Limited has announced a significant portfolio move with the divestment of its hotel strata lot (including some retail units) at ESR BizPark @ Changi, Singapore, for a sale consideration of approximately S\$101.0 million. The sale price is in line with the most recent independent valuation of S\$100.9 million, reflecting a market-aligned transaction.

Transaction Details

• Buyer: Coliwoo Project Ace Pte Ltd
• Location: 2 Changi Business Park Avenue 1, Singapore 486015
• Asset: Leasehold estate in the hotel strata lot (including select retail units)
• Sale Consideration: ~S\$101.0 million (excluding divestment costs and GST)
• Valuation: S\$100.9 million (as at 31 December 2025, Savills Valuation And Professional Services (S) Pte Ltd)
• Completion: Option fee paid upon signing; balance upon completion

Strategic Rationale and Portfolio Impact

• Sharpening of Portfolio Focus: The hotel component has been identified as non-core within ESR-REIT’s portfolio. Its divestment allows the REIT to concentrate on its industrial strengths, which include logistics and high-specifications industrial assets.
• Non-Contributing Asset: The hotel component had delivered no income since September 2025, following the expiry of the master lease agreement. This means the property has been vacant and incurring property-related expenses, impacting the REIT’s earnings.
• Retention of Core Assets: Post-divestment, ESR-REIT will retain ownership of the business park, retail, and convention centre components at ESR BizPark @ Changi, representing approximately 81% of the total gross floor area of the integrated development.
• Capital Recycling: Proceeds from the sale will provide ESR-REIT with greater financial flexibility. The funds are intended to be redeployed towards accretive acquisitions, asset enhancement initiatives, redevelopments, or debt repayments, all aimed at enhancing unitholder value.
• Expected Value Enhancement: Management expects these actions to improve portfolio quality, resilience, and earnings visibility, while leveraging growth trends in logistics and high-specifications industrial real estate.
• No Material Impact on FY2025 Financials: The divestment is not expected to have a material impact on ESR-REIT’s net asset value or distribution per unit for the financial year ending 31 December 2025.
• Portfolio Diversification Maintained: Upon completion, ESR-REIT will own 70 properties (excluding 48 Pandan Road, held via JV) across Singapore, Japan, and Australia, in addition to investments in three Australian property funds.

Management Commentary

Adrian Chui, Chief Executive Officer and Executive Director of ESR-REIT, stated, “The hotel component is a non-core asset within our portfolio, and its divestment enables us to further sharpen our strategic focus while meaningfully enhancing the overall quality, resilience, and earnings visibility of our portfolio. Importantly, the proceeds will provide us with greater financial flexibility, allowing capital to be more effectively redeployed into potentially accretive acquisitions, asset enhancement initiatives, and redevelopments within our core sectors such as logistics and high-specifications industrial assets, which are deeply embedded in our DNA and continue to benefit from structurally supported demand and attractive long-term growth prospects. These actions are expected to enhance value accretion for our Unitholders.”

About ESR-REIT

• Leading Asia-Pacific S-REIT listed on the Singapore Exchange since July 2006.
• Portfolio: 70 properties (excluding 48 Pandan Road JV), ~2.5 million sqm GFA, S\$5.9 billion AUM as of 30 June 2025.
• Geographic Footprint: Singapore (50 assets), Australia (18), Japan (2), plus three Australian property funds.
• Managed by: ESR-REIT Management (S) Limited, sponsored by ESR.
• Strategy: Focused on logistics, high-spec industrial, business parks, and general industrial properties.

About ESR (Sponsor)

ESR is a leading Asia-Pacific real asset owner and manager, focused on logistics real estate, data centres, and energy infrastructure that support the digital economy and supply chain. ESR operates across Australia, New Zealand, Japan, South Korea, Greater China, Southeast Asia, India, and Europe, offering integrated real asset fund management and development solutions.

Key Points for Investors and Potential Share Price Implications

• Price Sensitive: The divestment of a non-core, vacant, and non-income-contributing asset at market valuation will eliminate related expenses and could improve future earnings quality and visibility.
• Portfolio Quality: Transition toward core industrial assets aligns with long-term growth trends in logistics and high-specification industrial real estate, potentially enhancing future distributions and REIT valuation.
• Capital Flexibility: Proceeds provide the REIT with resources for debt reduction, strategic acquisitions, or asset enhancements—all of which could positively impact unitholder returns and support future distribution growth.
• Risk Considerations: While the divestment itself is not expected to materially impact FY2025 NAV or DPU, execution of redeployment plans will be key to realizing the expected accretion for unitholders.

Contact Information

• Lyn Ong, Senior Manager, Capital Markets and Investor Relations. Tel: +65 6222 3339, Email: [email protected]
• Sua Xiu Kai, Manager, Corporate Communications. Tel: +65 6222 3339, Email: [email protected]

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation regarding any securities. Investing in REITs involves risks, including possible loss of principal. The value of units and distributions may fluctuate, and past performance is not indicative of future results. Investors should consult their own financial advisors regarding any investment in ESR-REIT. This article is based on public information as of 30 January 2026 and may contain forward-looking statements subject to risks and uncertainties.

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