The transaction represents a strong commitment from ESR Group to further align its interests with the REITs’ unitholders and positions ESR-LOGOS REIT for long-term sustainable growth
SINGAPORE and HONG KONG, July 27, 2022 /PRNewswire/ — ESR Group Limited and its subsidiaries (“ESR” or the “Company”), has today, completed the acquisition of 654,546 shares in ESR-LOGOS Funds Management (S) Limited, the manager of ESR-LOGOS REIT (“E-LOG Manager”) from Mr. Tong Jinquan (held via his wholly-owned subsidiary, Shanghai Summit Pte. Ltd.). ESR is also in the process of acquiring 189.97 million ESR-LOGOS REIT (“E-LOG” or the “REIT”) units from Mr. Tong Jinquan (held via his wholly-owned subsidiary, Leading Wealth Global Inc). Following the acquisition, ESR remains the largest shareholder with more than a 90% stake in the E-LOG Manager and will also become the largest unitholder of E-LOG with a 14.4% stake in the REIT.
Mr. Jeffrey Perlman, Chairman of ESR, commented, “We are pleased to strengthen our commitment to E-LOG, a testament to the strategic merits behind the formation of this leading new economy, APAC-focused REIT post the merger earlier this year. As the Sponsor of E-LOG, ESR Group remains focused on leveraging its robust pipeline of high-quality infill logistics assets to continue to build upon the REIT’s size and scale. With this acquisition, we will continue to work to propel E-LOG towards an enhanced growth trajectory by accelerating its exposure to in-demand quality logistics and industrial properties while repositioning the portfolio quality by divesting non-core assets to continue to deliver long-term sustainable value to its unitholders.”
As a leading New Economy and future-ready Asia Pacific S-REIT, E-LOG has a portfolio of approximately S$5.5 billion of total assets located across the developed markets of Singapore and Australia, with a total gross floor area of approximately 2.3 million sqm, as well as investments in three property funds in Australia. E-LOG is currently ranked amongst the top 15 Singapore-listed real estate investment trust (S REITS) by free float market capitalization. Prior to ESR Group’s acquisition, Mr. Tong Jinquan was the largest unitholder of E-LOG and had been a shareholder of the E-LOG Manager since October 2018, following the merger between E-LOG (formally known as ESR-REIT), and Viva Industrial Trust.
Mr. Adrian Chui, Chief Executive Officer and Executive Director of the E-LOG Manager, said, “We would like to thank Mr. Tong for his support to the REIT over the past four years. Looking forward, with this acquisition, the shareholders of the Manager are now even more focused, dedicated and aligned, which will enable E-LOG to better leverage the ESR Group platform and pipeline in an increasingly scarce environment for high quality logistics and high-tech industrial assets to further grow E-LOG and enhance value to our unitholders.”
About ESR-LOGOS REIT
ESR-LOGOS REIT is a leading New Economy and future-ready Asia Pacific S-REIT. Listed on the Singapore Exchange Securities Trading Limited since 25 July 2006, ESR-LOGOS REIT invests in quality income-producing industrial properties in key gateway markets.
As at 30 June 2022, ESR-LOGOS REIT holds interests in a diversified portfolio of logistics properties, high-specifications industrial properties, business parks and general industrial properties with total assets of approximately S$5.5 billion. Its portfolio comprises 83 properties (excluding 48 Pandan Road held through a joint venture) located across the developed markets of Singapore (62 assets) and Australia (21 assets), with a total gross floor area of approximately 2.3 million sqm, as well as investments in three property funds in Australia. ESR-LOGOS REIT is also a constituent of the FTSE EPRA Nareit Global Real Estate Index.
For further information on ESR-LOGOS REIT, please visit www.esr-logosreit.com.sg.
ESR is APAC’s largest real asset manager powered by the New Economy and the third largest listed real estate investment manager globally. With US$140.2 billion in total assets under management (AUM), our fully integrated development and investment management platform extends across key APAC markets, including China, Japan, South Korea, Australia, Singapore, India, New Zealand and Southeast Asia, representing over 95% of GDP in APAC, and also includes an expanding presence in Europe and the U.S. We provide a diverse range of real asset investment solutions and New Economy real estate development opportunities across our private funds business, which allow capital partners and customers to capitalize on the most significant secular trends in APAC. ESR is the largest sponsor and manager of REITs in APAC with a total AUM of US$45 billion. Our purpose – Space and Investment Solutions for a Sustainable Future – drives us to manage sustainably and impactfully and we consider the environment and the communities in which we operate as key stakeholders of our business. Listed on the Main Board of The Stock Exchange of Hong Kong, ESR is a constituent of the FTSE Global Equity Index Series (Large Cap), Hang Seng Composite Index and MSCI Hong Kong Index. More information is available at www.esr.com.