GLP C-REIT makes history with $260 million follow-on offering on Shanghai Stock Exchange

Offering was supported by 16 domestic institutional investors and represents an important step towards greater securitization of the China real estate sector

Shanghai and Singapore, 19 June 2023 – GLP C-REIT (SSE: 508056) has completed a landmark follow-on equity offering of RMB 1.85 billion (~$260 million) and the new shares have started trading on the Shanghai Stock Exchange (SSE). The placement was supported by 16 leading domestic institutions including asset management firms, securities companies, and insurance companies.

GLP C-REIT is the first logistics warehousing onshore REIT to be listed on SSE and one of the first non state-sponsored C-REITs to participate in the growth of China’s publicly traded REIT program. In addition to being chosen as part of the inaugural listing batch in June 2021, GLP C-REIT demonstrated its growth potential by successfully completing a secondary offering in June 2023, a distinction shared by only three other C-REITs.

“This announcement marks an important first for us and the market overall. Logistics remains one of the pillar industries to support economic growth in China and we are honoured to contribute to the establishment of a significant instrument for real estate securitization which supports long-term growth of the market. As the C-REIT market continues to grow in size and liquidity, we are in a strong position to accelerate our asset monetization strategy and grow our AUM,” said Teresa Zhuge, Executive Vice Chairman and President, China at GLP Capital Partners Limited.

Proceeds of the secondary offering will be used to acquire three logistics facilities – GLP Park Qingdao Qianwan Port, GLP Park Jiangmen Heshan and GLP Chongqing Urban Distribution Logistics Centre, expanding GLP C-REIT’s portfolio to comprise 10 modern logistics assets with net leasable area of 1.16 million square meters and total installed solar capacity of 32.4 MW. The assets are located in core logistics markets of Greater Beijing, Yangtze River Delta region, Guangdong-Hong Kong-Macao Greater Bay Area and Chengdu-Chongqing Economic Circle. The average occupancy rate of the portfolio was 91.55% as of December 2022 and is leased to customers in biomedicine, manufacturing, third-party logistics services and e-commerce industries.