CLI’s flagship regional fund acquires newly-completed Grade A logistics property in South Korea for $112 mil
The property, Anseong Seoungeun Logistics Centre, makes up two four-storey buildings with cellar floors. The property has an overall of 60,407 sqm of net leasable area.
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.
It lies in the north western area of Anseong, an emerging logistics center in the Gyeonggi state. The place is stated for being well-served by primary expressways providing quick and easy accessibility to Seoul and Greater Seoul. A new expressway, which is expected to be finished by 2024, will add higher access to the building.
” This investment matches COREF’s existing portfolio of 10 office and multifamily possessions across Japan, Singapore and even Australia and diversifies the portfolio to the resistant South Korean logistics sector,” adds Simon Treacy, chief executive officer of nonpublic equity realty at CLI. “Need for quality logistics centers in the country is robust and boosting continuously on the rear of accelerating ecommerce buildup that has actually resulted in the country having one of the greatest ecommerce infiltration rates worldwide. The purchase also aligns with COREF’s essential investment motifs, which include capitalising on emerging submarkets in the fund’s target created nations and the expanding supremacy of shopping.”
The purchase will certainly carry COREF’s funds under management (FUM) to over $1 billion.
“Asia Pacific continues to benefit from quick urbanisation and robust economic growth. Since the release of COREF, we have indeed constructed a varied profile of 11 high quality investments across four countries in Asia Pacific that provide clients eye-catching risk-adjusted gains. We will continue to take advantage of our nation organizations’ on-the-ground proficiency to expand our private funds,” Treacy continues.
Since its inception in September 2021, COREF has already purchased properties in Australia, Japan and even Singapore.
” Leveraging our team’s special offer sourcing and execution abilities and considerable 20-year performance history, we protected this high-quality asset at an attractive rate by means of an off-market exercise,” says Matthew Sohn, head of Korea for CLI. “We expect logistics supply to moderate extensively in the midterm given ascending building and construction costs, campaign financing demands and also tighter development constraints. We see potential in this possession as it has a top area in the north-western area of Anseong, a promising submarket that has lured major logistics business to develop base and numerous global investment company to buy into in logistics assets.”
