ESR-REIT Completes Strategic Divestment of Hotel Strata Lot at 2 Changi Business Park Avenue 1, Singapore

ESR-REIT has announced the successful completion of the divestment of its leasehold interest in the hotel strata lot, including certain retail units, located at 2 Changi Business Park Avenue 1, Singapore 486015. The transaction was completed by Perpetual (Asia) Limited, acting as trustee of Viva Trust (a wholly owned sub-trust of ESR-REIT), for a sale consideration of approximately S\$101.0 million (exclusive of divestment costs and applicable GST).

Key Points for Investors

• Strategic Asset Disposal: The divestment was conducted at valuation, indicating the transaction price was aligned with independent assessments of the property’s market value.
• Portfolio Rationalization: With the divestment, ESR-REIT continues to own the business park, retail, and convention centre components of ESR BizPark @ Changi (4, 6 & 8 Changi Business Park Avenue), reinforcing its focus on core assets in the business park and industrial segments.
• Portfolio Composition Post-Divestment: ESR-REIT’s portfolio now consists of 70 properties (excluding 48 Pandan Road, held through a joint venture) across Singapore, Japan, and Australia, and maintains investments in three property funds in Australia.
• Portfolio Value and Scale: As of 31 December 2025, the REIT’s total assets were approximately S\$5.9 billion, with a diversified asset base spanning logistics, high-spec industrial, business park, and general industrial properties, amounting to a total gross floor area of around 2.4 million sqm.
• Credit Rating and Index Inclusion: ESR-REIT holds a ‘BBB’ rating (Stable outlook) from Fitch Ratings and is a constituent of the FTSE EPRA Nareit Global Real Estate Index, iEdge Singapore Next 50 Index, and iEdge Singapore Next 50 Liquidity Weighted Index.

Potential Share Price Impact

• Potential Re-rating Catalyst: The sale of the hotel strata lot at market valuation, for a substantial consideration of S\$101.0 million, could provide capital recycling opportunities. This may enhance the REIT’s financial flexibility for debt repayment, new investments, or return of capital to unitholders.
• Strategic Focus: By divesting non-core assets and concentrating on business park and industrial assets, ESR-REIT signals a clear strategic focus, which could improve operational efficiency and portfolio quality—factors that may be seen positively by investors and analysts.
• Risk Factors: As with any asset divestment, there may be a short-term impact on income if the disposed property was a significant contributor. However, the reinvestment or use of proceeds could offset this, depending on management’s capital allocation decisions.

About ESR-REIT and Its Sponsor

ESR-REIT is a New Economy S-REIT listed on the Singapore Exchange since July 2006, investing in income-producing industrial properties across Asia Pacific gateway markets. It is managed by ESR-REIT Management (S) Limited and sponsored by ESR, a leading Asia-Pacific real asset owner and manager focused on logistics, data centres, and energy infrastructure.

Contact Details for Investor Enquiries

• 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]

Important Notice & Disclaimer

The value of ESR-REIT units and the income derived from them may fluctuate and are subject to investment risks, including possible loss of principal. Past performance is not indicative of future results. Units are not deposits or obligations of the Manager, Trustee, or their affiliates, and are not guaranteed. Investors should consult their own advisers before making any investment decision. This article is for informational purposes only and does not constitute investment advice, an offer, or an invitation to buy or sell any securities.

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