Harvest, JD.com issue China’s first private warehousing logistics REIT

Harvest, JD.com issue China’s first private warehousing logistics REIT

Baker McKenzie FenXun and Han Kun Law Offices advised parties in issuing China’s first private enterprise warehousing logistics real estate investment trust (REIT).

JD.com’s storage infrastructure REIT managed by Harvest Fund, Harvest JD Storage Infrastructure REIT, was issued on the Shanghai Stock Exchange at a price of RMB3.514 per share, raising a total of RMB1.757 billion (USD259 million). This is the third warehousing logistics REIT in China, and also the first warehousing logistics REIT issued by private enterprises.

Baker McKenzie Fenxun advised JD.com, with partners Wang Jianzhao, Yang Guangshui and Bao Zhi leading the team. Han Kun advised Harvest Fund.

The underlying assets of Harvest JD Storage Infrastructure REIT are three logistics parks located in the core cities of Chongqing, Wuhan and Langfang, with a total area of 350,000 square metres and a total value of RMB1.565 billion.

Warehousing logistics REITs are among core investment products in the international market with a strong ability to resist risks and offer high yields.

According to Bloomberg, the issuance ratio of industrial/logistics REITs ranks second in Singapore, and third in the United States and Japan as of August 2022.

At present, infrastructure REITs are the main choices in China, but only two of the 23 publicly offered REITs issued from scheme launched to December last year were warehousing logistics REITs.