CLI’s flagship regional fund acquires newly-completed Grade A logistics property in South Korea for $112 mil

CapitaLand Open End Real Estate Fund (COREF), the flagship regional core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has recently acquired a recently finalized, Grade A logistics property in South Korea for $112 million.

The purchase will certainly take COREF’s funds under management (FUM) to more than $1 billion.

The commercial property, Anseong Seoungeun Logistics Centre, consists of 2 four-storey buildings with cellar grounds. The property has a total of 60,407 sqm of net leasable area.

“Asia Pacific remains to benefit from rapid urbanisation and also strong economical development. Ever since the launch of COREF, we have built a diversified portfolio of 11 top quality assets across four nations in Asia Pacific that offer investors attractive risk-adjusted gains. We will certainly remain to leverage our country teams’ on-the-ground expertise to expand our private funds,” Treacy proceeds.

Since its creation in September 2021, COREF has already purchased properties in Australia, Japan and even Singapore.

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” This financial investment complements COREF’s existing portfolio of 10 office along with multifamily properties across Japan, Singapore and Australia and expands the portfolio to the resilient South Korean logistics industry,” includes Simon Treacy, chief executive officer of exclusive equity real estate at CLI. “Interest for high quality logistics centers in the nation is robust and boosting progressively on the back of speeding up ecommerce buildup that has caused the country having one of the greatest ecommerce infiltration rates internationally. The transaction likewise lines up with COREF’s key financial investment styles, such as capitalising on emerging submarkets in the fund’s target developed nations and the expanding supremacy of ecommerce.”

” Take advantage of our group’s special offer sourcing along with execution capacities and comprehensive 20-year record, we protected this excellent possession at an appealing price through an off-market exercise,” states Matthew Sohn, head of Korea for CLI. “We assume logistics supply to moderate extensively in the midterm offered rising building and construction expenses, assignment funding challenges and also tighter development restrictions. We see potential in this asset as it has a prime location in the north-western region of Anseong, a promising submarket that has actually attracted major logistics firms to develop base and also several global investment company to buy into in logistics investments.”

It is located in the north western region of Anseong, a developing logistics hub in the Gyeonggi state. The place is claimed for being well-served by main expressways providing easy access to Seoul and Greater Seoul. A new expressway, which is expected to be finished by 2024, will include better access to the property.

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