SG brief: ESR-REIT

An artist's impression of ESR-REIT's planned re-development of 21B Senoko Loop in Singapore, announced in April 2022. Credit: ESR-REITAn artist's impression of ESR-REIT's planned re-development of 21B Senoko Loop in Singapore, announced in April 2022. Credit: ESR-REIT

ESR-REIT is benefitting from geopolitical risks and the U.S.-China trade tension, which caused manufacturers to shift global supply chain management to Just-in-Case instead of Just-in-Time, Adrian Chui, CEO and executive director of ESR-REIT’s manager, said at the annual general meeting (AGM) in late April, according to minutes filed to SGX Saturday.

The Just-in-Case model means stocking up and diversifying the global supply chain for both raw materials and finished goods, Chui said.

“This has resulted in strong demand for high-specs space and logistics space, which has a positive effect on our rental reversion. A case in point is the broad based positive rental reversion achieved in 4Q2021 and 1Q2022,” Chui said.

ESR-REIT has merged with ARA LOGOS Logistics Trust to form ESR-LOGOS REIT, or E-LOG.