ESR Kendall Square REIT closes US$400M follow-on fundraising

ESR Kendall Square REIT's Bucheon Cold Logistics Park property located in Bucheon's Ojeong District in the Seoul metro area in South Korea. Credit: ESR Kendall Square REIT's websiteESR Kendall Square REIT's Bucheon Cold Logistics Park property located in Bucheon's Ojeong District in the Seoul metro area in South Korea. Credit: ESR Kendall Square REIT's website

ESR Kendall Square REIT, a logistics and industrial REIT listed in South Korea, has completed a fully taken up follow-on equity offering raising US$400 million, ESR Cayman said in a statement Tuesday.

“This marks the biggest follow-on offering for a listed REIT in Korea in terms of offering size, demonstrating investors’ strong interest and confidence in the quality of the assets and the management track record of ESR Kendall Square REIT,” ESR Cayman said in the statement.

ESR Kendall Square REIT is sponsored by ESR Kendall Square, a subsidiary of ESR Cayman.

Sanghwoi Bae, CEO of Kendall Square REIT Management, said the offering marked a major milestone since the December 2020 initial public offering (IPO), with the REIT set to become the country’s largest listed REIT by market capitalisation and asset size.

“As the only pure-play logistics and industrial REIT in Korea, our portfolio of prime assets provides public investors with a uniquely positioned platform to gain exposure to the logistics market in Korea, a major economy in APAC with one of the most impressive e-commerce growth rates in the world,” he said in the statement.

The new ESR Kendall Square REIT shares will be listed on the Korea Stock Exchange on 28 December, ESR Cayman said.

ESR Kendall Square REIT’s portfolio includes 18 prime-location logistics assets with a total asset value of around US$2.2 billion. At the time it was listed in late 2020, the REIT had a portfolio of 11 logistics assets valued at around US$1.3 billion.

In January 2021, it was reported that Canada Pension Plan Investment Board (CPPIB) owned around 24.85 percent of the REIT, with the majority of the stake converted from bonds in 2020.