Real estate asset manager ESR Group said 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.
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.
