Singapore-based GLP became the first international company to list a real estate investment trust in China after its Chinese Reit started trading on the Shanghai Stock Exchange on Monday (June 21). GLP C-Reit also became the first logistics C-Reit to be listed on the bourse.
Its initial public offering raised more than 5.8 billion yuan (US$897 million) from the sale of 1.5 billion shares priced at 3.89 yuan apiece. The IPO attracted huge interest from institutional and retail investors, with the institutional tranche 6.7x oversubscribed and the retail tranche oversubscribed by almost 10x.
Ahead of the public issue, GLP C-Reit was 52% pre-committed by six cornerstone investors including Taikang Life (20%), Shoucheng Holdings (10%), Dajia Investment Holding (8.39%), CICC Wealth Management (8.33% ), CCB Trust (3.5%) and China Insurance Investment Fund (1.78%). GLP retains a 20% ownership interest in GLP C-Reit.
“The listing of China’s first infrastructure Reits is one of the most awaited events for the industry and GLP is proud and honoured to be the first international company to complete this landmark transaction,” says Teresa Zhuge, executive vice chairman of GLP China.
“The oversubscription of our C-Reit is a very encouraging sign. We continue to see robust investor demand for stable logistics and industrial assets and income streams in China and will continue to leverage our industry-leading team and portfolio to generate attractive returns for our shareholders.”
GLP C-Reit comprises a portfolio of seven modern logistics assets located in the core logistics hub areas of Beijing, the Yangtze River Delta, and the Greater Bay Area with over 700,000 square metres (7.5 million square feet) of gross floor area (GFA) and a lease ratio of 98.7% as of December 2020.
In China, GLP is the largest provider and developer of logistics real estate space with total GFA in excess 43 million sqm and assets under management across funds and balance sheet of more than US$40 billion.
GLP is also the sponsor, asset manager and property manager of GLP J-Reit, which was listed on the Tokyo Stock Exchange in December 2012 in one of Japan’s largest real estate IPOs. GLP J-Reit has a market capitalization of 703.7 billion yen (US$6.4 billion) as of December 2020, representing a compound annual growth rate of more than 25% since inception.