ESR Group proposes listing of logistics assets on Shanghai Stock Exchange

ESR Group is mulling the listing of its three logistics projects in Kunshan, Jiangsu Province, China through a publicly offered infrastructure securities fund on the Shanghai Stock Exchange.

Named Jiangsu Friend I, II and III, the trio of leasehold projects are wholly owned by the group’s project company named Jiangsu Friend Warehouse.

According to the group’s 2021 annual report, Jiangsu Friend I has a gross floor area (GFA) of 135,081 square metres (sq m) and its lease expiry is in 2054. Jiangsu Friend II and III have GFAs of 85,674 sq m and 206,418 sq m, respectively, and both have lease expiries in 2056.

The proposed spin-off of the three projects is in line with a pilot programme launched by China’s National Development and Reform Commission and the China Securities Regulatory Commission, said the group on Tuesday (Dec 13).

Formerly known as ESR Cayman, ESR Group owns a majority stake in the manager of ESR-Logos Real Estate Investment Trust (Reit). It is also the SGX-listed Reit’s largest unitholder.