Asia Digest: ESR Kendall Square REIT Lists In Korea; Frasers Divests Anchorpoint Stake

Logistics real estate firm ESR has listed ESR Kendall Square REIT on the Korea Exchange, while Frasers Centrepoint Trust is divesting its stake in Anchorpoint Shopping Centre for a consideration of $82 million.

ESR Kendall Square REIT listed on Korea Exchange

Global logistics real estate firm ESR has announced the successful listing of ESR Kendall Square REIT Co., Ltd on the KRX KOSPI Market of the Korea Exchange.

This is the first publicly-listed, institutional-quality, logistics-assets-focused real estate investment trust (REIT) in Korea.

With the completion of the global offering, ESR Kendall Square REIT’s portfolio will have a total asset value of around $1.3 billion and around $650 million market capitalisation. ESR Kendall Square REIT is sponsored by ESR Kendall Square, a subsidiary of ESR, and has prime logistics facilities in Korea as its underlying assets.

The initial portfolio consists of 11 modern, institutional-grade logistics facilities mainly located in the Greater Seoul Metropolitan Area, with a total gross floor area (GFA) of 684,095 square metres.

ESR Kendall Square is the dominant logistics real estate platform in Korea with over $7.2 billion of AUM.

ESR Kendall Square REIT is expected to have opportunities to acquire additional properties managed by ESR Kendall Square and its affiliates.

Citigroup Global Markets Korea Securities Limited, Morgan Stanley & Co. International Plc, Seoul Branch and Korea Investment & Securities Co., Ltd. were the joint global coordinators and underwriters. Other co-managers and underwriters taking part in this global offering include NH Investment & Securities Co., Ltd., KB Securities Co., Ltd. and Samsung Securities Co., Ltd.

Frasers Centrepoint Trust to divest Anchorpoint stake for $82m

HSBC Institutional Trust Services,  the trustee of Frasers Centrepoint Trust (FCT), has entered into a sale and purchase agreement with unrelated third parties for the proposed divestment of FCT’s ownership in Anchorpoint Shopping Centre for a consideration of S$110 million ($82 million).

The announcement was made by Frasers Centrepoint Asset Management (FCAM), the manager of FCT.

The net proceeds from the divestment — around S$108.8 million, after taking into account divestment expenses — may be used to repay debt or for working capital purposes.

The divestment of the Property is expected to be completed by March 22, 2021.

Post divestment, FCT’s Singapore retail portfolio consists of 10 retail malls with approximately 2.3 million square feet of net lettable area and more than 1,500 leases with a strong focus on essential trades and services. FCT is a developer-sponsored retail real REIT.

FCT became one of the largest suburban retail mall owners in Singapore with total assets of S$6.7 billion after acquiring the remaining interest in AsiaRetail Fund on October 27, 2020. FCT’s enlarged Singapore portfolio comprises 11 retail malls and an office building located in the suburban regions of Singapore.