ESR Kendall Square REIT Raises $400M for Korea Logistics - MingtiandiHaving grown its portfolio by 50 percent since its $650 million IPO last December, ESR Kendall Square REIT, South Koreas first publicly-listed logistics trust, has sold 100 percent of a $400 million follow-on equity offering.The fresh capital raise marks the largest-ever follow-on offering for a KRX-listed REIT in terms of offering size, Hong Kong-based logistics giant ESR said Tuesdayin a release. The new shares will be listed on the Korea Stock Exchange on 28 December.After going public last year with a 12-asset portfolio, the REIT managed by ESR Korea unit Kendall Square has expanded its holdings to 18 logistics assets with a total asset value of $2.2 billion, including two Seoul-area properties acquired in mid-2021 and six assets to be added immediately after the new shares are listed.With the completion of the follow-on offering, ESR Kendall Square REIT is poised to become Koreas biggest listed REIT in terms of market capitalisation and asset size, further cementing our leadership position as the biggest logistics asset operator in the country and enjoying a clear lead over the next largest player, said Sanghwoi Bae, chief executive of the trusts manager.Rookie of the YearFollowing the latest equity raising, ESR Kendall Square REIT is expected to show 70 percent year-on-year growth or an $880 million increase in asset size within its first 12 monthssince listing, ESR said. That feat would make it the fastest-growing and largest REIT in Korea, with a post-offering market cap of about $1.2 billion.Sanghwoi Bae of ESR Kendall Square REITJeffrey Shen and Stuart Gibson, ESRs co-founders and co-CEOs, called the trust a great example of the continued financialisation of real estate in Asia Pacific and the emergence of a large and thriving REIT sector in the region.We are very pleased with the performance and growth of ESR Kendall Square REIT to date, they said. Korea is a core strategic market of ESR where we continue to see great potential and prospects driven by strong e-commerce and a limited supply of prime institutional-grade logistics assets.ESR Kendall Square REITs institutional investors include global names like ESR, BlackRock and the Canada Pension Plan Investment Board. The trusts recent acquisitions include the 43,045 square metre (463,333 square foot)Yongin BRIC facilitysoutheast of Seoul for $94.2 million and the 94,875 square metreAnseong Logistics Parksouth of the capital for $145 million, both announced in June.Listed-Trust TitanWith the planned $5.2 billion acquisition of Singapore-based ARA Asset Management, the enlarged ESR Group is set to become the biggest sponsor of REITs in APAC, Shen and Gibson said.We believe we are uniquely positioned to continue to capture the outsized growth of one of the largest secular trends in the region, the co-CEOs declared.In November, ESR shareholdersapproved the acquisition dealthat is expected to create the largest real asset manager in APAC and the third-largest listed real estate investment manager worldwide, with combined assets under management totalling $131 billion.More than half of the enlarged groups AUM will come from perpetual and core capital vehicles, including 14 listed REITs, according to ESR.In what it called a value-enhancing step for the enlarged group, ESR in October proposed themerger of ESR-REIT and ARA Logos Logistics Trustto form Singapore-listed ESR-Logos REIT with total assets of $4 billion. By market cap, ESR-Logos REITs S$2.5 billion free float would rank eighth on the Singapore Exchange, just behind OUE Commercial Trust and ahead of CapitaLand China Trust.

SEOUL/HONG KONG, 22 April, 2021 Canada Pension Plan Investment Board (CPP Investments) and ESR Cayman Limited (ESR; SEHK Stock Code: 1821) today announced an expansion of their Korea Income Joint Venture (Korea Income JV). CPP Investments and ESR will collectively upsize their investment in the vehicle by a further US$500 million, with CPP Investments contributing the majority of the capital. The new capital will effectively double the size of the venture to US$1 billion in total equity allocation.The Korea Income JV was established in 2018 to focus on investments in income producing logistics assets located in major metropolitan areas of South Korea. The portfolio, which is managed by ESR Kendall Square, consisted of 12 institutional-grade modern logistics facilities with an aggregate GFA of 774,666 sqm. Six of the 12 assets were divested to ESR Kendall Squares Korea Logistics REIT in December 2020.Jimmy Phua, Head of Asia Real Estate at CPP Investments, said, Korea is already one of the most developed e-commerce markets in Asia and the pandemic has accelerated the growth in the past year, further fuelling the demand for quality logistics facilities. By expanding our successful joint venture with ESR, we are able to meet the fast-growing demand and strengthen our leadership position in the market, ultimately delivering long-term value for CPP contributors and beneficiaries.Thomas Nam, CEO of ESR Kendall Square, ESRs South Korean platform, remarked, The upsize of the Korea Income JV is a reflection of the solid performance the vehicle has achieved in the past several years. The positive results demonstrate the strength of our investment strategy and asset management capability as well as the continued confidence of our long-standing capital partner, CPP Investments. The demand and long-term prospects of high quality logistics facilities continue to show stable growth, especially as e-commerce adoption and structural changes in supply chain management have been driven forward during the COVID-19 pandemic. With the increased capital commitment, we will be in an even better position to respond quickly and strategically to opportunities as they arise.CPP Investments and ESR have a well-established investment relationship and track record. In addition to the Korea Income JV, the two parties have collaborated on two other joint ventures focused on the Korean logistics sector since 2015.▣ 자료문의 :켄달스퀘어리츠 이동진 본부장 02) 6205-0467