ESR Group’s subsidiary ESR China REIT (EST C-REIT) has completed its initial public offering (IPO) and is now listed on the Shanghai Stock Exchange.
ESR Group is the sponsor of several Singapore-listed REITs including ESR-LOGOS REIT (E-LOG) and Sabana Industrial REIT.
The IPO raised over RMB2.1 billion ($390 million), based on 800 million shares priced at RMB2.628 per share. ESR C-REIT has 12 cornerstone institutional investors for its IPO, with ESR retaining a 41% stake.
This is ESR’s first REIT in China, and comprises three stabilised logistics facilities that have retained an average occupancy rate of over 90% in the last five years.
The REIT’s assets span a total gross floor area of 427,000 sq m and are tenanted by companies in logistics, e-commerce, fast-moving consumer goods and the automotive sectors.
“These three seed assets are among our finest in China, and we are confident that this portfolio will lay a solid foundation for scaling ESR C-REIT’s growth and long-term value for investors. We look forward to deeper collaboration with onshore financial institutions and investors, as we continue to support the development of the supply chain and economy in China,” says Chang Rui Hua, managing director, business management and investment, ESR Hong Kong Limited.
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ESR manages close to 180 assets across China, with nearly 70% of ESR stabilised properties located in major economic hubs in the Yangtze River Delta and Greater Bay Area, according to the report.
ESR Group’s co-founder and co-CEO Stuart Gibson says that the listing of ESR C-REIT strengthens the group’s “new economy” leadership in logistics real estate, data centres, and infrastructure and renewables, while enhancing its channels for accelerated capital recycling.
