ESR Kendall Square REITs to List on KOSPI Market on the 23rd

[Asia Economy Reporter Eunmo Koo] ESR Kendall Square REITs, the first logistics-specialized REITs (Real Estate Investment Trust) in Korea, will be listed on the KOSPI market on the 23rd.

The Korea Exchange announced on the 22nd that ESR Kendall Square REITs will begin trading from the 23rd. ESR Kendall Square REITs is a REIT based on logistics centers as underlying assets. It conducted a pre-IPO equity investment last October, with participation from prominent domestic and international institutions such as the Canada Pension Plan Investment Board (CPPIB), the Military Mutual Aid Association, and Korean Re.

From the 25th of last month to the 2nd of this month, 106 institutional investors participated in the demand forecast, showing a competition rate of 8.75 to 1. The public offering price per share was a single price of 5,000 KRW, with a total public offering amount of approximately 357.2 billion KRW.

From the 4th to the 8th, the subscription for public shares targeted at general investors received about 59.97 million shares for the subscription volume of 17.86 million shares, recording a competition rate of 3.36 to 1. Subscription deposits amounted to 149.9 billion KRW.

In the non-face-to-face era caused by the novel coronavirus disease (COVID-19), the e-commerce market is rapidly growing. It is evaluated that the fact that over 80% of tenants are e-commerce and third-party logistics positively influenced the demand forecast by institutional investors and the public subscription by general investors.

Recently, changes have been occurring to revitalize the domestic REITs market, such as tax benefits for individual investors in public REITs and allowing housing and urban pensions and retirement pensions to invest in REIT products. ESR Kendall Square REITs, leading the domestic logistics platform industry, is highly expected to grow based on positive market revitalization and is expected to become a representative REIT leading the REITs market.

Yoon Wonseop, CEO of Kendall Square REITs Management, said, “We thank the investors who recognized the assets and business value of ESR Kendall Square REITs,” and added, “As a leader in the logistics industry, we will strive to revitalize logistics industry investment and increase investors’ asset value.”