CLI’s flagship regional fund acquires newly-completed Grade A logistics property in South Korea for $112 mil
It is located in the north western region of Anseong, an emerging logistics hub in the Gyeonggi state. The place is said to be well-served by key expressways providing easy access to Seoul and even Greater Seoul. A brand-new expressway, which is anticipated to be completed by 2024, will add greater access to the building.
The commercial property, Anseong Seoungeun Logistics Centre, consists of two four-storey buildings with basement levels. The property has an overall of 60,407 sqm of net leasable area.
“Asia Pacific remains to benefit from quick urbanisation as well as robust business growth. Ever since the release of COREF, we have indeed built a varied portfolio of 11 top quality assets throughout four countries in Asia Pacific that offer clients attractive risk-adjusted profits. We will certainly remain to leverage our country organizations’ on-the-ground proficiency to grow our confidential funds,” Treacy continues.
Since its creation in September 2021, COREF has already invested in possessions in Australia, Japan and even Singapore.
” Take advantage of our group’s deal sourcing along with implementation capabilities and even substantial 20-year track record, we secured this excellent asset at an appealing price by means of an off-market exercise,” claims Matthew Sohn, head of Korea for CLI. “We assume logistics supply to moderate significantly in the midterm given rising building costs, campaign financing difficulties and tighter property development limitations. We see possible in this property as it has a top area in the north-western region of Anseong, a promising submarket that has lured significant logistics business to set up base and also several global investment company to get into in logistics properties.”
CapitaLand Open End Real Estate Fund (COREF), the front runner regional core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has already acquired a freshly completed, Grade A logistics real estate in South Korea for $112 million.
The procurement will bring COREF’s funds under management (FUM) to over $1 billion.
” This financial investment matches COREF’s presenting profile of 10 office and multifamily properties throughout Japan, Singapore including Australia and diversifies the profile to the durable South Korean logistics market,” adds Simon Treacy, CEO of private equity realty at CLI. “Need for quality logistics facilities in the nation is robust and enhancing steadily on the back of increasing shopping development that has actually led to the nation getting one of the highest possible ecommerce infiltration rates internationally. The purchase also coordinates with COREF’s major investment motifs, like capitalising on emerging submarkets in the fund’s target created nations and the growing prominence of e-commerce.”