“As such, I see that we have the key ingredients to
reposition our portfolio to be larger, stronger and more
resilient. We can also be future-ready for tomorrow’s
industrialists through the execution of our expansion
plans locally via acquisitions to scale up, as well as ensuring
our assets undergo rejuvenations and enhancements.”
Adrian acknowledges digitisation and automation
are having a big impact on Singapore’s industrial market.
“As a result of these, tenant demands for industrial
space with sophisticated features have increased, as they
seek buildings with specifications that are able to cater
to their business needs. Our portfolio needs to be flexible
and adaptable to meet the ever-changing requirements of
our tenants,” he explains. “Properties that were considered
modern, contemporary or state-of-the-art more than
10 years ago may not be able to cater to the requirements
of today’s new industrialists and emerging sectors. This has
an impact on the occupancy levels and rents that these
buildings can command. For example, cargo-lift warehouses
were in great demand during the early to mid-2000s. Today,
these have superseded by modern ramp-up warehouses
due to the need to provide flow efficiency on the movement
of goods.”
In another big milestone for the business, ESR-REIT
merged with Viva Industrial Trust in October last year.
“We could have started working on the merger in 2017,
but we decided not to rush. Instead, we got our deal-making
machinery restarted and gained credibility in the market
before undertaking the merger,” Adrian says.
“Since the merger, we have seen business partners more
willing to forge meaningful partnerships with the REIT
on various levels. We recognise that
a partnership is a two-way street and
we seek to form business partnerships
that are both beneficial to the REIT
and the service providers to achieve
a win–win situation,” he adds.
Although ESR-REIT is based
in Singapore, Adrian points out
that its scope extends much further.
“We do not see ESR-REIT as
a Singapore business, we see it
as a Pan-Asian business,” he says.
“So we are always on the lookout
for business partners, service providers
and talented potential employees to
join us. There’s so much potential for us to do a lot more
within our portfolio – there’s always room for improvement
and growth.”
A firm believer in empowering his team, Adrian tries
to give his employees space to do their jobs and trusts
them to make informed decisions. “People tend to think
the person above them is constantly watching to see if they
have made any mistakes,” he notes.
“Our philosophy is not to focus on who has done
what wrong. When there is a problem, we work together
to solve it. We don’t fault employees if there is a problem- unless it is a consistent problem” he says.
“This allows our staff to take some calculated risks
and constantly improve on how we do things without
feeling pressured or monitored. In this way, we build trust
among employees and they feel part of the overall decision-
making process.”
ESR-REIT’S PORTFOLIO
FEATURES 57 PROPERTIES
LOCATED ACROSS
SINGAPORE, WITH
A TOTAL GROSS FLOOR
AREA OF APPROXIMATELY
14 MILLION SQUARE FEET
(1.3 MILLION SQUARE
METRES) AND A VALUE
OF S$3 BILLION
(US$2.2 BILLION).
theceomagazine.com | 143“RHB is privileged to have been a part of ESR-REIT’s transformation
into a Top 5 Industrial S-REIT over the past few years. We look forward
to delivering holistic solutions to Adrian and his team as they continue
their growth journey.” – Goh Ken-Yi, Head, Corporate and Investment
Banking, RHB Bank Singapore
Interview | INVEST