Hong Kong real estate firm ESR Group gets nod to list logistics REIT in China

Hong Kong real estate firm ESR Group gets nod to list logistics REIT in China

Photo: ESR

Real estate asset manager ESR Group said on Monday it received the Chinese securities regulator’s approval to list its logistics real estate firm in the country and expected to raise around 2.44 billion yuan ($336.02 million) from the listing.

In December 2022, the Hong Kong-based company that has sponsored multiple Singapore-listed REITs including ESR-LOGOS REIT and Sabana Industrial REIT, had proposed a spin off and separate listing of its logistics assets through a publicly offered infrastructure securities investment fund, or C-REIT, on the Shanghai Stock Exchange.

The ESR C-REIT comprises three currently self-owned logistics facilities in Kunshan, Jiangsu Province, China, it said.

Post the listing of ESR C-REIT, ESR‘s subsidiary Shanghai Yizhishang Enterprise Management Services Co will continue to manage the three assets.

“We are confident this portfolio will set the foundation for us to continue to grow the C-REIT…and bring more opportunities for us to collaborate with onshore financial institutions and investors in China,” Stuart Gibson, ESR Group co-founder and co-CEO said.

The final offer price of the REIT offering has not yet been disclosed, though, the annualised cash distribution rate by the REIT is projected to be 4.5% and 4.62% for 2024 and 2025, respectively.

ESR will subscribe to 34% stake of the C-REIT IPO, while cornerstone investors, public institutions, and retail investors will subscribe for the remaining 66%, the company said.

Reuters

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