Carrying forward a Chinese REIT
ESR Group has received approval for its REIT application in China. As part of this real estate investment trust, the company is expected to raise over RMB 2.438 billion. The China securities regulatory commission approved the group’s application to register and list ESR China REIT (C-REIT). This includes three logistics facilities in Kunshan, Jiangsu Province, totalling 426,000 sqm.
Located just 45 minutes from Shanghai, the hubs are thus strategically positioned for last mile logistics and e-commerce. They will now continue to be managed by an ESR subsidiary. The group will subscribe to a 34% stake of the C-REIT while 66% will go to other investors.
With Avic Fund as its REIT manager and China Merchants Securities as its financial advisor, ESR is looking to grow this trust to RMB 2.438 billion and thus strengthen its network in China. The company already manages 170 assets, most of which are located in the Yangtze River Delta or Greater Bay Area. (mk)