CLI’s flagship regional fund acquires newly-completed Grade A logistics property in South Korea for $112 mil
It lies in the north western area of Anseong, a developing logistics hub in the Gyeonggi state. The area is said for being well-served by key expressways providing easy accessibility to Seoul and even Greater Seoul. A brand-new expressway, which is expected to be completed by 2024, will add greater accessibility to the real estate.
” Leveraging our team’s special offer sourcing along with implementation abilities and even substantial 20-year track record, we secured this premium asset at a desirable price via an off-market exercise,” claims Matthew Sohn, head of Korea for CLI. “We expect logistics produce to moderate substantially in the midterm given increasing building and construction expenses, campaign financing challenges as well as tighter development restrictions. We see potential in this asset as it has a top place in the north-western region of Anseong, an up-and-coming submarket that has lured major logistics firms to establish base and also several global investment company to invest in logistics properties.”
The commercial property, Anseong Seoungeun Logistics Centre, comprises two four-storey buildings with basement levels. The real estate has a total amount of 60,407 sqm of net leasable location.
Since its kickoff in September 2021, COREF has purchased possessions in Australia, Japan and even Singapore.
The procurement will certainly take COREF’s funds under management (FUM) to more than $1 billion.
“Asia Pacific continues to take advantage of rapid urbanisation as well as strong business development. Ever since the start of COREF, we have developed a diversified profile of 11 quality assets throughout 4 countries in Asia Pacific that offer investors appealing risk-adjusted returns. We will remain to utilize our country teams’ on-the-ground competence to expand our private funds,” Treacy continues.
CapitaLand Open End Real Estate Fund (COREF), the front runner regional core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has recently gotten a freshly completed, Grade A logistics real estate in South Korea for $112 million.
” This investment matches COREF’s existing profile of 10 office and multifamily assets throughout Japan, Singapore including Australia and diversifies the profile to the durable South Korean logistics sector,” adds Simon Treacy, CEO of private equity property at CLI. “Need for top quality logistics centers in the nation is robust and increasing steadily on the rear of accelerating shopping progression that has actually led to the nation having among the greatest ecommerce penetration rates internationally. The transaction also aligns with COREF’s essential financial investment themes, which include capitalising on emerging submarkets in the fund’s target developed countries and the growing dominance of shopping.”