SINGAPORE (Oct 19): The manager ESR-REIT has entered into a sale and leaseback deal with Hyflux.

ESR Funds Management will acquire 8 Tuas South Lane for a total of $111 million and lease back a majority of the space to Hyflux Membrane Manufacturing for 15 years once the deal is completed.

The property comprises of five detached factories, one block of eight-storey warehouse and four blocks of dormitory buildings.

It is located near to Tuas Biomedical Park, off Tuas South Avenue and is accessible via the Pan Island Expressway, Kranji Expressway and Ayer Rajah Expressway.

The property has a Gross Floor Area (GFA) of 72,569 sqm and a remaining land tenure of 20 years with an option to renew for a further term of 15 years.

The appraised value of the property, based on a valuation conducted by Edmund Tie & Company (SEA) using the capitalisation approach and discounted cash flow analysis, was $115 million inclusive of upfront land premium payable for the unexpired lease term of 35.4 years.

As at 10.36am, units in ESR-REIT are trading 1 cent lower at 57 cents.