Hong Kong real estate firm ESR gets nod for logistics REIT listing in China (updated)
24/06/2024 04:29
(Adds details, context in paragraphs 2-7)
June 24 (Reuters) - Real estate asset manager ESR Group
1821.HK 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 ESRO.SI 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.
($1 = 7.2614 Chinese yuan renminbi)
(Reporting by Megha Rani in Bengaluru; Editing by Rashmi Aich)
((Megha.Rani2@thomsonreuters.com;))