ESR China REIT debuts on Shanghai Stock Exchange, raising over RMB 2.1 billion

SHANGHAI / HONG KONG, 24 January 2025 – ESR Group Limited (“ESR” or the “Company”, together with its subsidiaries as the “Group”; SEHK Stock Code: 1821), Asia-Pacific’s (“APAC”) leading New Economy real asset manager, today announced that its logistics-focused ESR China REIT (“ESR C-REIT”, SSE Stock Code: 508078) has completed its initial public offering (“IPO”) and is now listed on the Shanghai Stock Exchange.

The IPO raised more than RMB 2.1 billion, based on 800 million shares priced at RMB 2.628 per share. Reflecting strong investor interest, ESR C-REIT attracted 12 cornerstone institutional investors for its IPO, with ESR retaining a 41% stake.

As ESR’s first REIT in China, ESR C-REIT offers domestic institutional and retail investors a focused and differentiated opportunity to leverage ESR’s high-quality logistics asset portfolio and deep in-market expertise, to participate in the growth of the country’s logistics real estate sector.

The successful listing benefited from the Pilot Project for Infrastructure Real Estate Investment Trusts initiated by China’s National Development and Reform Commission and China Securities Regulatory Commission.

Jeffrey Shen, ESR Group Co-founder and Co-CEO, commenting on the listing noted, “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, “As one of Asia’s largest REIT managers, we are committed to delivering sustainable growth and value to our investors, customers, and communities. The listing of our ESR C-REIT strengthens the Group’s New Economy leadership in logistics real estate, data centres, and infrastructure and renewables, while enhancing our channels for accelerated capital recycling.”

ESR C-REIT comprises three stabilised logistics facilities that have retained an average occupancy rate of over 90% in the last five years. Featuring top-tier specifications and design, the seed assets – Jiangsu Friend Phase I, Phase II, and Phase III spanning a total gross floor area of over 427,000 square metres – are tenanted by leading multinational companies in logistics, e-commerce, fast-moving consumer goods, and the automotive sectors.

Chang Rui Hua, Managing Director, Business Management and Investment, ESR Hong Kong Limited, who oversees the C-REIT initiative, said, “These 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. We look forward to deeper collaboration with onshore financial institutions and investors, as we continue to support the development of the supply chain and economy in China.”

As sponsor of the ESR C-REIT, ESR provides investors with a pipeline of high-quality assets for acquisition from its industry-leading portfolio of assets under management and development workbook. ESR manages close to 180 assets across China, with nearly 70% of ESR’s stabilised properties located in major economic hubs in the Yangtze River Delta and Greater Bay Area, where demand is driven by robust activity in renewable energy industries and cross-border e-commerce.