Source: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.
Source:ESR tops the lists of 2021 GRESB Assessment for second consecutive year (propertyfundsworld.com)ESR Cayman Limited (ESR), an APAC-focused logistics real estate platform, has secured outstanding scores and accolades across multiple categories in the 2021 Global Real Estate Sustainability Benchmark (GRESB) Assessment.In recognition of its Environmental, Social and Governance (ESG) leadership and commitment, ESR achieved outstanding results with the Groups funds in South Korea, Japan and China in particular, topping multiple GRESB ranking lists.In South Korea, ESR Kendall Square Development JV 1 was named Regional Sector Leader in the Development Benchmark, industrial real estate sector. The fund received the highest possible five Green Stars rating, scoring 93 points and topped five GRESB Development rankings.In Japan, all three funds: Redwood Japan Logistics Fund II LP, RJLF 3 Co-Investment Platform and PGGM RJLC LP topped several GRESB Development rankings in addition to receiving five Green Stars rating, each with a score of 91 points.In China, Redwood China Logistics Fund LP topped the China industrial distribution warehouse non-listed of GRESB Development category with 87 points in addition to receiving 1st of GRESB Score within industrial non-listed opportunistic category in the GRESB Standing Investments Benchmark assessment with a score of 73 points.The Groups funds across other regions also saw significant improvement. These included Indias ESR India Logistics Fund Pte Ltd receiving four Green Stars rating in the GRESB Development Benchmark with a score of 88 points, and the Groups Australia fund, POP III, receiving four Green Stars rating in the GRESB Standing Investments Benchmark with a score of 82 points.Jeffrey Shen and Stuart Gibson, Co-founders and Co-CEOs of ESR, says: We are proud that our commitment to ESG continues to benefit our stakeholders, and such efforts are once again recognised by the worlds most respected organisations, like GRESB.ESG is an essential element that drives our next stage of growth. As APACs largest real asset manager powered by New Economy real estate following the planned acquisition of ARA Asset Management, we strive to make a positive impact and create a better future for the communities and the world we operate and live in. We very much look forward to the broader impact the enlarged ESR group can deliver across our businesses and geographies.Emma Larsson, ESG Officer of ESR, says: ESG principles have long been rooted in the business of ESR. We are pleased that our convictions and the tremendous effort we have put into ESG are recognised by major industry organisations such as GRESB. In addition, MSCI recently reaffirmed the Groups ESG Rating of A for its continued sustainability excellence. To pursue the targets set out in our 2025 ESG Roadmap, we remain committed to ESG transparency, to continue improving our overall performance and to accelerate our efforts to create sustainable value for our people, the planet and our business.
Source:ESR Kendall Square REIT adds US$145 million logistic asset to portfolio Korea | RE Talk AsiaKoreas #1 industrial real estate investment trust, ESR Kendall Square REIT (365550 KS), has completed the acquisition of a modern logistics facility in greater Seoul suburban market for US$145 million (or KRW 160 billion). The asset, named Anseong Logistic Park (LP), was a committed dropdown asset planned for inclusion upon the companys IPO in last December. Anseong LP is currently 100% master-leased by Koreas leading e-commerce player Coupang (CPNG US) with a 4.5-year WALE (weighted average lease expiry), and GFA (gross floor area) of 94,875 sqm.Following its latest asset inclusion, ESR Kendall Square REITs total GFA has been boosted by c.16%, reaching 684,095 sqm. ESR Kendall Square REITs share price has risen 35.8% as of 1 June 2021, since it went public on 23 December 2020.The company plans to continuously seek growth through introducing prime logistic real estate assets to investors.
Source:CPPIB eyes long-term investing opportunities in Korea (koreaherald.com)South Korea is brimming with long-term investment opportunities as sustainability-driven innovations crystalize in Asias fourth-largest economy, a high-ranking official of public pension scheme Canada Pension Plan Investment Board said Wednesday.The pandemic has not only changed the way people live, but also prompted a technology-led transformation across the Asia-Pacific region, said Suyi Kim, head of Asia Pacific at CPP Investments during a virtual conference hosted by the Seoul-based Institute for Global Economics.We will continue to invest in Korea across public equities, private equities and real estate, said Kim, who oversees C$134 billion ($111.2 billion) assets deployed to the Asia-Pacific region. This takes up 27 percent of CPP Investments total assets under management.Technologies in the field of e-commerce, telehealth, educational technology and financial technology are thriving, but its investment opportunities will not be limited to such sectors, and instead to infrastructure that enables seamless operations of such companies.The latest example is CPP Investments decision to double its investment in its joint venture with ESR to $1 billion, which goes to the portfolio of 12 income-producing logistics assets in the Greater Seoul area. The basket of assets are publicly traded in the form of a real estate investment on the Korea Exchange, as the first listed REIT in Korea solely targeting industrial assets. Other than the joint venture, Korea Income JV, CPP Investments and ESR have collaborated on two other joint ventures focused on the Korean logistics sector since 2015.This stems from an idea that Korea was thriving in sectors that are enabling these innovative companies, such as industrial real estates like warehouses, which are supporting e-commerce businesses including companies in Korea, Kim said.The investment veteran also said that Koreas financial regulator has been playing a critical role in nurturing an environment to promote green finance and gender diversity of listed companies, distinguishing itself from peers across the Asia Pacific region.I understand that FSC convened the meeting of its green finance task force last year and really developed a great finance regulatory environment, which is great to see, Kim said.Kim added that she was pleased to learn that the state regulator Financial Services Commission, is looking at further changes of the stewardship code to strengthen fiduciary duties especially related to environmental, social and governance factors.Gender diversity is also building in Korea, as new regulations are requiring Korean companies with more than 2 trillion won ($1.8 billion) in assets to have more than one gender on their board.Last year, we voted against more than 300 public portfolio companies for failing to have women on board. Ninety-five percent of them were in Asia Pacific, Kim said. I think investors can expect new opportunities from the regions climate changes initiatives, and from more access to green finance market and to the green economy.CPP Investments was overseeing C$497.2 billion-worth of assets across the globe as of March.
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.▣ Head of IR, ESR KendallSquare REITDongjin LEE / +82-2-6205-0467