ESR selling logistics assets worth over 2 billion yuan to a GIC-ESR China income venture
HONG KONG-LISTED ESR Group said on Sunday (Jul 3) that it will be disposing its stake in 9 companies holding logistics and warehousing faciilities in China to a new China income venture – ECN IV Offshore Holdings – owned by subsidiaries of GIC and ESR.
The aggregate consideration for the assets being bought by the subsidiary of ECN IV Offshore Holdings is around 2.2 billion yuan (S$458 million), according to the filing on the Singapore Exchange.
Wholly-owned subsidiaries of ESR and GIC entered into an investment agreement on Sunday, agreeing to respectively contribute 10 per cent and 90 per cent to the capital of the new China income venture, which is in proportion to their shareholding percentages.
The proceeds of the investment in ECN IV Offshore Holdings would be used to acquire the assets being sold by ESR, and funding other projects in accordance with the terms of the investment agreement.
ESR Group noted that it will continue to maintain an indirect interest in the assets being disposed through its minority interest in ECN IV Offshore Holdings. The group added that it will also act as the investment manager of the China income venture, and asset manager of its property assets and earn management fees for such services.
ESR Group shares in Hong Kong rose 1.2 per cent on Thursday (Jun 30) to close at HK$21.20.
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Meta releases early versions of its Llama 3 AI model
Seatrium unit ordered to pay US$108 million in arbitration over equipment supply contracts
TSMC estimates losses of US$92.4 million due to Taiwan earthquake
Marina Bay Sands Q1 profit surges 51.5% to US$597 million on tourism boom
US: Wall St opens higher as some chip stocks bounce back after selloff
Blackstone reports 1% rise in Q1 earnings