CLI’s flagship regional fund acquires newly-completed Grade A logistics property in South Korea for $112 mil
The property, Anseong Seoungeun Logistics Centre, comprises two four-storey structures with basement floors. The property has an overall of 60,407 sqm of net leasable area.
It is located in the north western area of Anseong, an emerging logistics hub in the Gyeonggi state. The location is said to be well-served by key expressways providing easy access to Seoul and even Greater Seoul. A new expressway, that is anticipated to be completed by 2024, will include better access to the building.
” This financial investment complements COREF’s occurring portfolio of 10 workplace and multifamily assets across Japan, Singapore including Australia and branches out the portfolio to the resistant South Korean logistics industry,” adds Simon Treacy, chief executive officer of nonpublic equity property at CLI. “Demand for quality logistics facilities in the country is durable and enhancing steadily on the rear of speeding up shopping development that has resulted in the nation having among the greatest ecommerce penetration prices worldwide. The transaction also coordinates with COREF’s key investment themes, which include capitalising on emerging submarkets in the fund’s target created nations and the growing dominance of e-commerce.”
” Leveraging our group’s deal sourcing and implementation capacities and even comprehensive 20-year record, we obtained this excellent property at an attractive price through an off-market exercise,” says Matthew Sohn, head of Korea for CLI. “We expect logistics supply to moderate significantly in the midterm provided increasing building and construction prices, campaign funding difficulties and also tighter project constraints. We see potential in this property as it has a prime place in the north-western region of Anseong, a promising submarket that has actually attracted major logistics firms to set up base and also several global investment firms to get into in logistics assets.”
CapitaLand Open End Real Estate Fund (COREF), the front runner local core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has recently obtained a newly finalized, Grade A logistics real property in South Korea for $112 million.
“Asia Pacific remains to take advantage of rapid urbanisation as well as robust economic growth. Ever since the start of COREF, we have developed a varied portfolio of 11 top quality investments throughout 4 countries in Asia Pacific that give clients eye-catching risk-adjusted returns. We will certainly remain to leverage our nation organizations’ on-the-ground proficiency to expand our exclusive funds,” Treacy proceeds.
Since its inception in September 2021, COREF has purchased assets in Australia, Japan and Singapore.
The acquisition will take COREF’s funds under management (FUM) to more than $1 billion.
