CLI’s flagship regional fund acquires newly-completed Grade A logistics property in South Korea for $112 mil
It lies in the north western region of Anseong, an emerging logistics center in the Gyeonggi state. The place is stated to be well-served by key expressways providing easy accessibility to Seoul and even Greater Seoul. A new expressway, which is expected to be completed by 2024, will certainly add higher access to the building.
The purchase will bring COREF’s funds under management (FUM) to over $1 billion.
Ever since its creation in September 2021, COREF has purchased possessions in Australia, Japan and Singapore.
” This investment enhances COREF’s presenting portfolio of 10 workplace and multifamily properties throughout Japan, Singapore including Australia and branches out the portfolio to the resilient South Korean logistics industry,” includes Simon Treacy, chief executive officer of exclusive equity real estate at CLI. “Demand for top quality logistics facilities in the country is robust and increasing progressively on the rear of accelerating shopping buildup that has led to the nation getting one of the highest ecommerce infiltration rates internationally. The purchase also lines up with COREF’s key financial investment motifs, such as capitalising on arising submarkets in the fund’s target established nations and the expanding prominence of ecommerce.”
The real estate, Anseong Seoungeun Logistics Centre, consists of two four-storey buildings with cellar floors. The real estate has a total amount of 60,407 sqm of net leasable area.
CapitaLand Open End Real Estate Fund (COREF), the flagship local core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has already obtained a freshly completed, Grade A logistics real estate in South Korea for $112 million.
“Asia Pacific remains to take advantage of rapid urbanisation as well as robust economical growth. Ever since the launch of COREF, we have indeed built a diversified profile of 11 quality assets across four countries in Asia Pacific that offer clients eye-catching risk-adjusted returns. We will certainly remain to leverage our nation organizations’ on-the-ground expertise to grow our confidential funds,” Treacy continues.
” Leveraging our team’s deal sourcing and execution capabilities and even substantial 20-year record, we secured this premium property at an attractive cost by means of an off-market exercise,” claims Matthew Sohn, head of Korea for CLI. “We assume logistics produce to moderate significantly in the midterm offered increasing construction prices, assignment funding challenges and tighter project constraints. We see prospective in this possession as it has a top area in the north-western region of Anseong, a promising submarket that has lured major logistics business to set up base and a number of global investment company to buy into in logistics properties.”
