ESR-REIT has announced the proposed divestment of a portfolio comprising eight non-core properties, with CBRE representing the seller. This move comes amidst a backdrop of strong institutional investment interest in Singapore’s industrial sector, driven by the country’s economic and political stability and a robust currency. The recent decline in interest rates to their lowest levels since 2022 has further spurred acquisition appetite among investors.
CBRE’s Head of Singapore Industrial Capital Markets, Loh Lee Fen, noted the attractiveness of Singapore’s industrial market, stating, “Institutional investment interest in Singapore’s industrial sector has remained exceptionally strong throughout 2025.” She emphasised the country’s global appeal due to its stability and currency strength.
Dylan Chua, Director of Singapore Industrial Capital Markets at CBRE, added that industrial real estate in Singapore is seen as a “defensive growth sector,” benefiting from long-cycle demand and resilience against market volatility. He highlighted that occupiers in this space are typically large corporates and multinational companies with longer lease terms and strong credit profiles, resulting in predictable cash flows and deep liquidity even during market stress.
The divestment by ESR-REIT underscores the ongoing appeal of Singapore’s industrial sector to investors seeking stable and resilient investment opportunities. As interest rates remain low, the sector is likely to continue attracting significant attention from institutional investors.
