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, makes up two four-storey buildings with cellar floors. The real estate has an overall of 60,407 sqm of net leasable area.
Since its inception in September 2021, COREF has already purchased assets in Australia, Japan and even Singapore.
The acquisition will bring COREF’s funds under management (FUM) to over $1 billion.
It is located in the north western region of Anseong, a developing logistics center in the Gyeonggi state. The place is said to be well-served by main expressways providing quick and easy accessibility to Seoul and Greater Seoul. A new expressway, which is expected to be completed by 2024, will include better accessibility to the real estate.
” This investment enhances COREF’s presenting profile of 10 office together with multifamily properties throughout Japan, Singapore including Australia and branches out the portfolio to the durable South Korean logistics industry,” adds Simon Treacy, CEO of private equity property at CLI. “Demand for high quality logistics centers in the nation is durable and increasing steadily on the back of speeding up ecommerce progression that has resulted in the country having among the greatest ecommerce infiltration rates worldwide. The deal likewise lines up with COREF’s major financial investment styles, such as capitalising on emerging submarkets in the fund’s target created countries and the expanding supremacy of e-commerce.”
” Take advantage of our team’s special offer sourcing along with execution capabilities and comprehensive 20-year track record, we protected this high-quality property at an enticing rate via an off-market exercise,” states Matthew Sohn, head of Korea for CLI. “We assume logistics supply to moderate substantially in the midterm given increasing construction costs, assignment financing challenges and also tighter development constraints. We see potential in this asset as it has a top area in the north-western region of Anseong, a promising submarket that has lured significant logistics firms to establish base and also a number of global investment company to invest in logistics properties.”
CapitaLand Open End Real Estate Fund (COREF), the front runner local core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has already gotten a newly finalized, Grade A logistics real estate in South Korea for $112 million.
“Asia Pacific continues to gain from rapid urbanisation as well as strong economic growth. Since the release of COREF, we have built a diversified portfolio of 11 top quality investments throughout four nations in Asia Pacific that provide capitalists appealing risk-adjusted returns. We will continue to utilize our nation companies’ on-the-ground experience to grow our confidential funds,” Treacy proceeds.