Pan-Asian logistics group ESR has deepened its footprint in Singapore in two transactions to increase its holding in Sabana REIT.
The Warburg Pincus-backed firm said it has purchased a 51.0% interest in the manager of Sabana REIT and a 9.9% interest in the listed vehicle itself from the Vibrant Group, the sponsor of the trust, for a total S$60.9m (鈧�39m).
The transaction would result in ESR holding indirectly about 93.8% in the manager of Sabana REIT, while ESR鈥檚 interest in the REIT itself would rise to 21.4%.
As previously reported by 麻豆映画 Real Assets, ESR over the past year has been progressively lifting its stake in Sabana REIT, which owns industrial properties worth more than S$880m.
Jeffrey Shen and Stuart Gibson, co-founders and co-CEOs of ESR, said: 鈥淭he investment in Sabana REIT and its manager is in line with ESR鈥檚 long-term strategy of investing in a broad range of real estate investment vehicles that would provide us with access to a portfolio of industrial properties in various stages of the property life cycle.鈥�
The transaction would allow ESR to enhance its income diversification and provide further opportunities for future growth, they said, adding that ESR was poised to leverage its Singapore platform as a gateway for expansion into ASEAN, expanding its Asia-Pacific footprint linking North Asia, India and Singapore to Australia.
