ESR-REIT has completed its asset enhancement initiatives (AEI) at 16 Tai Seng Street, creating an additional 2,793 square metres (sqm) of industrial space.

The AEI has increased the property’s plot ratio to 3.50 from 3.08 previously, bringing the total gross floor area to 22,800 sqm.

ESR-REIT says that the transformation included an extensive building facade upgrade, the addition of two new passenger lifts and one new fire lift, refurbishment of toilets and new lift lobbies, a new passenger drop-off point and a new external covered linkway to Tai Seng MRT station.

Including the additional lettable area created post-AEI, the property will achieve an occupancy rate of about 40%. ESR-REIT’s manager is currently in advanced negotiations with both new and existing tenants, including anchor tenants from the pharmaceutical and food production sectors who are exploring expansion within the property. These leasing activities are expected to improve occupancy to about 47% by 3QFY2025 and contribute positively to ESR-REIT’s income performance in the near term.

Units in ESR-REIT closed 2 cent higher or 0.784% up at $2.57 on July 24.