ESR Kendall Square REITs, Pursuing Listing on KOSPI Market

Public Offering Price 5,000 KRW, Expected Offering Amount 357.3 Billion KRW
Korea's First Logistics Center REIT... Aiming for KOSPI Market Entry Within the Year

[Asia Economy Reporter Eunmo Koo] Kendall Square REIT Management, a subsidiary of global logistics company ESR, is set to launch the first logistics center REIT (Real Estate Investment Trust) listing in South Korea.

On the 23rd, ESR Kendall Square REIT announced that it has officially begun the initial public offering (IPO) process for listing on the KOSPI market, starting with the effectiveness of the securities registration statement on the 22nd.

ESR Kendall Square REIT is a REIT established by Kendall Square REIT Management based on domestic logistics centers. The logistics centers included are assets that Kendall Square has either directly developed or acquired through funds.

As of the securities registration statement submission date, the logistics assets scheduled for inclusion consist of a total of 11 assets, totaling 684,094m², mainly located in the Gyeonggi-do region including Goyang, Yongin, and Bucheon. The total asset size is approximately 1.4 trillion KRW. This portfolio, centered on the metropolitan area, boasts geographic advantages as a logistics hub due to its proximity to transportation infrastructure and areas with concentrated cargo volume. Moreover, companies benefiting from the expansion of the e-commerce market account for a high proportion of tenants.

Logistics centers are gaining attention as a sector alongside the activation of online business, with demand continuously increasing due to the surge in e-commerce. Especially in the post-COVID-19 era, the increased use of e-commerce platforms has further emphasized the importance of logistics facilities, which is why ESR Kendall Square REIT is attracting attention as the first logistics center REIT in South Korea. Going forward, the company plans to continuously strive to increase investment value by carefully considering location, tenants, and expected returns to include additional assets.

ESR Kendall Square REIT recently succeeded in raising approximately 360 billion KRW through a pre-IPO. Participants included the Canada Pension Plan Investment Board (CPPIB), the Military Mutual Aid Association, and Korean Reinsurance Company, with ESR Group also making an additional investment of 70 billion KRW.

The number of shares to be offered by ESR Kendall Square REIT is 71,459,000, with a desired public offering price of 5,000 KRW per share, making the expected public offering amount approximately 357.3 billion KRW. From the 25th of this month to the 2nd of next month, demand forecasting will be conducted targeting domestic and foreign institutional investors, followed by a public subscription for general investors from the 4th to the 8th of next month. The lead underwriters are Korea Investment & Securities, Citigroup Global Markets Securities, and Morgan Stanley International.

This content was produced with the assistance of AI translation services.