ESR has raised RMB2.2bn (€290m) for its first China logistics-focused real estate investment trust (REIT) which has been listed on the Shanghai Stock Exchange.
ESR China REIT’s (C-REIT) initial public offering attracted 12 cornerstone investors, with ESR retaining a 41% stake.
ESR C-REIT’s seed portfolio comprises three logistics facilities that have retained an average occupancy rate of over 90% in the last five years.
ESR C-REIT can acquire assets from ESR’s pipeline of managed and development assets, part of ESR’s portfolio of nearly 180 assets across China.
Jeffrey Shen, ESR Group co-founder and co-CEO, said: “The strong support from our investors, partners, and regulators for ESR C-REIT’s listing is testament to the confidence and demand for high- quality logistics assets.
“Our new ESR C-REIT, along with our proven portfolio of REITs in the logistics and industrial sectors across APAC, creates viable capital market fundraising vehicles for investors and drives positive impact on the broader economy.”
Stuart Gibson, ESR Group co-founder and co-CEO, added said the listing of ESR C-REIT strengthened the group’s new economy leadership in logistics real estate, data centres, and infrastructure and renewables, while enhancing its channels for accelerated capital recycling.”
Chang Rui Hua, managing director, business management and investment, ESR Hong Kong, who oversees the C-REIT initiative, said ESR C-REIT’s three seed assets “are among our finest in China, and we are confident that this portfolio will lay a solid foundation for scaling ESR China REIT’s growth and long-term value for investors”.
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