CLI’s flagship regional fund acquires newly-completed Grade A logistics property in South Korea for $112 mil
The real estate, Anseong Seoungeun Logistics Centre, comprises two four-storey structures with cellar floors. The real estate has an overall of 60,407 sqm of net leasable area.
It is located in the north western region of Anseong, an emerging logistics hub in the Gyeonggi province. The place is said to be well-served by main expressways providing easy accessibility to Seoul and even Greater Seoul. A new expressway, that is expected to be completed by 2024, will certainly include higher availability to the property.
The purchase will certainly bring COREF’s funds under management (FUM) to more than $1 billion.
Since its kickoff in September 2021, COREF has invested in properties in Australia, Japan and even Singapore.
“Asia Pacific continues to take advantage of rapid urbanisation and sturdy business growth. Ever since the start of COREF, we have constructed a diversified portfolio of 11 high quality assets across 4 countries in Asia Pacific that provide capitalists appealing risk-adjusted returns. We will certainly remain to leverage our nation organizations’ on-the-ground knowledge to grow our confidential funds,” Treacy proceeds.
” This investment complements COREF’s occurring profile of 10 workplace along with multifamily assets throughout Japan, Singapore and even Australia and branches out the portfolio to the durable South Korean logistics industry,” adds Simon Treacy, CEO of private equity real estate at CLI. “Interest for quality logistics facilities in the country is durable and boosting progressively on the rear of increasing shopping progression that has actually resulted in the nation getting among the highest possible ecommerce penetration prices worldwide. The purchase additionally lines up with COREF’s essential financial investment motifs, which include capitalising on arising submarkets in the fund’s target created countries and the growing prominence of shopping.”
CapitaLand Open End Real Estate Fund (COREF), the front runner local core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has already obtained a newly finalized, Grade A logistics property in South Korea for $112 million.
” Leveraging our team’s special offer sourcing and implementation capabilities and extensive 20-year performance history, we obtained this excellent possession at a desirable price by means of an off-market exercise,” says Matthew Sohn, head of Korea for CLI. “We expect logistics produce to moderate significantly in the midterm provided ascending building expenses, project financing difficulties and tighter property development limitations. We see possible in this asset as it has a prime location in the north-western region of Anseong, an up-and-coming submarket that has attracted significant logistics firms to set up base and also numerous global investment company to get into in logistics assets.”