ESR secures CSRC approval for China logistics REIT

The initial portfolio includes three logistics assets in Kunshan, Jiangsu Province.

ESR Group has secured the approval of the China Securities Regulatory Commission (CSRC) for its application to list its logistics Real Estate Investment Trust (REIT).

The firm expects to raise around RMB 2.44b from the listing of ESR China REIT (ESR C-REIT), with ESR, as the sponsor, subscribing to a 34% stake in the REIT’s IPO, leaving the remainder 66% to cornerstone investors, public institutions and retail investors.

It said it already secured cornerstone investors such as unnamed leading financial institutions and securities firms.

ESR C-REIT’s initial portfolio will include the three phases of Jiangsu Friend logistics facilities in Kunshan, Jiangsu Province, China.

Collectively known as the “Jiangsu Friend Warehouses”, they have a total GFA of over 426,000 sqm and an average occupancy rate of more than 90% in the past five years.

As the trust’s sponsor, ESR said it could provide the REIT a pipeline of assets for acquisition from its existing asset portfolio and a strong development pipeline. 

The real estate giant currently manages more than 170 properties worth over US$30.7b in total AUM and span 14.9 million sqm in gross floor area.