ESR Cayman files for Hong Kong IPO; ESR-Propertylink deal closes

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ESR Cayman Ltd. confirmed that it has filed the papers for its proposed IPO on the Hong Kong stock exchange.

The Asia Pacific-focused logistics real estate developer filed the application proof for the float March 1. Details of the IPO — such as the number of shares to be offered, target amount to be raised and expected timeline for the offering — have not been disclosed, but ESR Cayman said the proceeds from the IPO would be used to repay debt and redeem preference shares, develop properties and for pursuing M&A or strategic investments.

Earlier, ESR Cayman was reportedly targeting up to US$1.5 billion from the IPO.

As of Sept. 30, 2018, the developer’s completed properties were valued at about US$5.68 billion; properties under construction at US$3.43 billion; its 18 private third-party pooled investment vehicles at more than US$4.80 billion; and assets under management were at least US$14.0 billion.

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With about 11 million square meters of properties in various stages, ESR Cayman is the largest Asia Pacific-focused logistics property platform on a gross floor area basis. The company is focused on tier 1 and tier 1.5 cities in China, Japan, South Korea, Singapore, Australia and India.

Post IPO, ESR said it plans to further expand its presence in the region, enter new high-growth markets and expand its funds management platform.

CLSA and Deutsche Bank are the joint sponsors for the IPO.

Meanwhile, ESR Real Estate (Australia) Pty Ltd.’s A$723.3 million takeover of Propertylink closed March 8, with the ESR Cayman unit registering a voting power of 98.00% in the industrial real estate investment trust. The offer for Propertylink was first announced in September 2018

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