[Asia Economy Reporter Park So-yeon] Mirae Asset Global Investments is considering temporarily halting the 460 billion KRW rights offering of 'Mirae Asset Global REITs' and postponing the new share listing process.
According to the investment banking (IB) industry on the 5th, Mirae Asset Global Investments inquired with financial authorities at the end of last month about the possibility of delaying the rights offering and new share listing procedures for Mirae Asset Global REITs.
An IB industry official said, "The procedure is being postponed due to unfavorable market conditions, but it is not related to any fundamental issues in the US logistics market."
Mirae Asset Global REITs is a REIT that invests in real estate leased long-term by high-quality tenants located in key regions of major advanced countries such as the US, managed by Mirae Asset Global Investments.
On the 15th of last month, Mirae Asset Global Investments submitted a securities registration statement to the Financial Supervisory Service and began the general public offering process for the rights offering to list new shares. The total offering amount was 460 billion KRW, with demand forecasting scheduled for the 14th of this month. Subscription was planned for the 19th to 20th, followed by the new share listing in early next month.
However, due to recent interest rate hikes, economic recession, and ongoing market shocks, institutional investors have been hesitant to invest. Additionally, REIT stocks, which showed good price trends until April this year, have fallen below the offering price, causing a rapid change in the situation.
Mirae Asset Global REITs, which entered the KOSPI market in December last year, is a perpetual listed REIT investing in logistics centers, data centers, offices, and other real estate in key regions of major advanced countries such as the US. It currently manages three logistics center assets leased to high-quality tenants such as Amazon and FedEx.
This rights offering plans to add 11 new assets. The newly added assets consist of five locations in California, the largest logistics market in the US; three locations in Utah, which has the fastest population growth rate in the US; two assets located in major cities and logistics markets in Texas and Nevada; and one asset in Connecticut, the logistics hub connecting New York and Boston on the East Coast.
Mirae Asset stated that even if the rights offering is delayed, there will be no issues with adding new assets. They have already completed the purchase of eight assets and plan to incorporate the remaining three assets as scheduled through consultations with securities firms and others. They have added tenants such as Amazon, a global e-commerce company; FedEx, a global logistics company; Academy Sports + Outdoors, a Nasdaq-listed company distributing sports and outdoor goods; and Foot Locker, a global footwear distributor that has also entered the Korean market.
They explained that the diversified portfolio, leased for over 10 years by high-credit tenants in prime locations, significantly enhances stability to minimize investment risks even during economic downturns. The goal of becoming a large REIT with a market capitalization of 630 billion KRW remains unchanged.
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