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Bloomberg
Logistics real estate developer ESR Cayman Ltd is considering an initial public offering of a real estate investment trust consisting of South Korean assets, people familiar with the matter said, weeks after it raised $1.8 billion in a Hong Kong listing.
The Warburg Pincus LLC-backed company recently invited banks to pitch for the potential share sale in South Korea, which could raise at least $500 million, said the people, who asked not to be identified as the discussions are private. The listing could happen as soon as next year, the people said. The REIT could consist of ESR Cayman’s existing assets in South Korea and other properties, one of the people said.
The composition of the REIT and other details of the offering have not been finalised as deliberations are at an early stage, the people said.
Representatives for Warburg Pincus and ESR Cayman declined to comment.
ESR Cayman raised HK$14.1 billion ($1.8 billion) less than two months ago after shelving a first attempt in June, citing unfavorable market conditions. The developer of logistics warehouses has ridden the rapid growth of e-commerce in Asia, which has boosted demand for such properties. It bought a majority stake in Singapore’s Sabana Investment Partners Pte after pledging to invest more than $1 billion in a logistics park in Yokohama, Japan.
ESR Cayman’s portfolio spans across China, Japan, South Korea, Australia, Singapore and India, according to its website. It lists six assets in South Korea, including Bucheon Cold Chain Logistics Park, Gachang Logistics Park and Juksan Logistics Park.