ESR, a prominent Pan-Asian logistics company, has achieved a significant milestone by introducing the first-ever Real Estate Investment Trust (REIT) in China on the prestigious Shanghai Stock Exchange. This groundbreaking move marks a pivotal moment for ESR as it ventures into the Chinese market with its China REIT, known as ESR C-REIT. The launch of this REIT is projected to generate approximately RMB 2.44 billion (€319 million) in funds, with ESR holding a substantial 39.4% stake, while the remaining 66% is allocated for cornerstone investors, public institutional investors, and retail investors.

The announcement of the REIT offering on November 29, 2024, was a significant development for ESR, as confirmed in a statement to the Hong Kong Stock Exchange. This initiative follows the approval granted in June by the China Security Regulation Commission (CSCR), with the listing delayed due to prevailing market conditions at that time. The establishment of ESR C-REIT aligns with a pilot program initiated by the National Development and Reform Commission and the CSRC, reflecting a strategic move within the Chinese real estate landscape.

ESR C-REIT encompasses a seed portfolio comprising three assets collectively named Jiangsu Friend Warehouses, boasting a total gross floor area exceeding 427,000 square meters. In China, ESR Group oversees a vast portfolio of over 170 assets, managing assets valued at more than US$31 billion (€29.4 billion). This foray into the Chinese REIT market underscores ESR’s strategic growth and diversification strategy within the real estate sector.

The listing of ESR C-REIT on the Shanghai Stock Exchange not only underscores ESR’s strong foothold in the Asian logistics and real estate markets but also signifies the company’s commitment to expanding its presence in China’s burgeoning real estate sector. This move is poised to attract a diverse range of investors, including institutional and retail investors, offering them an opportunity to participate in China’s dynamic real estate market through a reputable and established player like ESR.

The introduction of the first China REIT by ESR on the Shanghai Stock Exchange is a testament to the company’s vision and strategic acumen in navigating the complex real estate landscape in China. With a robust track record and a diverse portfolio of assets, ESR is well-positioned to capitalize on the vast potential of the Chinese market through this innovative investment vehicle. This milestone not only signifies ESR’s expansion into new territories but also heralds a new era of investment opportunities in China’s real estate market.