ESR-REIT Management (S) Limited has announced the divestment of a hotel strata lot at ESR BizPark @ Changi, Singapore, for approximately S$101m. The transaction, executed through a put and call option agreement with Coliwoo Project Ace Pte Ltd, aligns with ESR-REIT’s strategy to focus on its industrial core by offloading non-core assets.
The hotel strata lot, located at 2 Changi Business Park Avenue 1, includes a hotel block with over 250 rooms and retail space. The sale proceeds will be used to finance accretive acquisitions, asset enhancement initiatives, and debt repayments. Adrian Chui, CEO of ESR-REIT, stated, “The hotel component is a non-core asset within our portfolio, and its divestment enables us to further sharpen our strategic focus whilst meaningfully enhancing the overall quality, resilience and earnings visibility of our portfolio.”
Following the divestment, ESR-REIT retains ownership of the business park, retail, and convention centre components at ESR BizPark @ Changi, which constitute 81% of the total gross floor area. The divestment is expected to complete in Q1 2026 and will not materially impact ESR-REIT’s net asset value or distribution per unit for the financial year ending 31 December 2025.
This strategic move is part of ESR-REIT’s broader plan to enhance its portfolio’s value and resilience, focusing on logistics and high-specifications industrial assets. The divestment also eliminates operating expenses and capital expenditure associated with the hotel component, which has not contributed income since September 2025.
