ESR-LOGOS REIT to eye new markets: ALOG minutes

ESR-REIT property near Singapore’s Tai Seng MRTESR-REIT property near Singapore’s Tai Seng MRT

ESR-LOGOS REIT, or E-LOG, is set to look at acquisitions in countries outside its current markets of Singapore and Australia after ARA LOGOS REIT (ALOG) and ESR-REIT complete their merger, according to minutes from ALOG’s extraordinary general meeting (EGM).

The EGM was held 21 March, and the minutes were filed to SGX Friday. 

Karen Lee, CEO of ALOG’s manager, said that while considering expansion overseas, E-LOG would focus on markets where the sponsor, ESR Cayman, has an operating platform. 

That would include Southeast Asia, China, South Korea, Japan, India, and Australia, she said, according to the minutes.

“This would provide tangible benefits including access to a global tenant network, the ability to leverage on a local presence to de-risk new market entry, improving its deal sourcing network, potential partnership opportunities for new acquisitions and the ability to leverage on ESR Group’s capital sourcing network and its capital commitment to E-LOG to fund growth,” she said, according to the minutes.

Lee said the enlarged REIT would first focus on integrating the existing ALOG and ESR-REIT teams, and finding synergies with the sponsor’s platform and tenant network. 

“ELOG would then focus on the initial pipeline of approximately US$2.0 billion of visible and executable Asia Pacific New Economy assets from the ESR Group to accelerate the enlarged REIT’s growth,” she said. 

“With the enlarged scale of the REIT allowing more competitive sources of capital and greater funding flexibility, the manager was confident that E-LOG would have a competitive edge to supercharge its growth in an environment where quality New Economy properties are becoming increasingly scarce,” Lee said, according to the minutes.

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