1 Interesting Fact About EC World Real Estate Investment Trust That You Need To Know

EC World Real Estate Investment Trust (SGX: BWCU) is the first Chinese specialised logistics and e-commerce logistics real estate investment trust (REIT) that was listed here in July 2016. It owns properties mainly used for e-commerce, supply-chain management and logistics. The REIT’s sponsor is Forchn Holdings Group, which holds at 41.7% stake in the REIT.

With that, let’s take a look at one interesting fact about the China-focused logistics trust that you might want to know now.

The Basics: Portfolio and Location

Source: EC World REIT’s Website

The REIT owns six properties located in Hangzhou, with a net lettable area of 698,478 square metres and a remaining land tenure of 39 years. The assets are worth around S$1.3 billion in total.

According to a presentation from the REIT, Hangzhou had more than 470,000 online businesses and RMB268 billion in online retail sales two years ago. This accounted for 55% of the total retail sales of consumer goods in the city.

The global headquarters of e-commerce giant, Alibaba Group Holding Ltd (NYSE: BABA), and regional headquarters of Baidu, JD.Com and Tencent Holdings Ltd (HKG: 0700) are also located in the city.

Source: EC World REIT’s Presentation (Dated 18 May 2017)

In 2015, Hangzhou was the fourth Chinese city for express delivery volume growth at 411.4 million units. The top city was Guangzhou at 561.8 million units. But there’s still room for growth, as seen below.

There is a plan to construct a second channel at the Grand Canal in five years. This will connect the waterway systems in Northern China to Hangzhou. The Government of Hangzhou forecasts port throughput to go up by 59.1% from 2016 to 2035.

Source: EC World REIT’s Presentation (Dated 18 May 2017)

Foolish Takeaway

With a unique portfolio and location in China, EC World REIT offers investors who are interested in the e-commerce and logistics space in the growing country a chance to partake in the growth.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.