ESR-REIT Annual Report 2024 47 Completed redevelopment of 21B Senoko Loop into a Green Mark Gold certified High-Specifications Industrial asset AEI works at 16 Tai Seng Street, expected to complete in 1H2025 Asset Enhancement Initiative and Redevelopment In FY2024, we successfully achieved Temporary Occupation Permit (“TOP”) for the Build-to-Suit redevelopment project at 21B Senoko Loop, developed specifically for NTS Singapore Pte Ltd (“NTS Singapore”). This transformation elevated the property from a dated General Industrial facility to a Green Mark Gold certified, High-Specifications Industrial property and is currently leased to NTS on a triple net basis for 15 years with built-in annual rental escalations. The redevelopment was completed on time and within budget, delivering a yield on cost of approximately 6.0%. The AEI at 16 Tai Seng Street is currently underway and is expected to complete by 1H2025 with an additional GFA of about 2,793 sqm for approximately S$32.0 million. The Rejuvenation works including façade upgrading, improvement of drop-off points and lift lobbies, addition of new lifts, toilet upgrading and a new covered external linkway connected to Tai Seng MRT station, are expected to elevate tenants’ user experience and attract new highvalue tenants. The AEI is expected to deliver an estimated yield on cost of up to 6.0% on a stabilised basis. The above AEIs and redevelopment are aimed at Rejuvenating the existing portfolio to unlock value and deliver net asset value growth, particularly in the New Economy portfolio as well as increase the attractiveness and efficiency of its assets to attract high-value tenants. ESR-REIT will continue to focus on organic growth initiatives by Rejuvenating its assets to position them to stay relevant to industrialists’ evolving space needs.
RkJQdWJsaXNoZXIy NTM2MDQ5