CLI’s flagship regional fund acquires newly-completed Grade A logistics property in South Korea for $112 mil
The commercial property, Anseong Seoungeun Logistics Centre, makes up two four-storey structures with basement grounds. The real property has a total of 60,407 sqm of net leasable location.
CapitaLand Open End Real Estate Fund (COREF), the front runner local core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has gotten a freshly finished, Grade A logistics real property in South Korea for $112 million.
It lies in the north western region of Anseong, an emerging logistics hub in the Gyeonggi state. The place is claimed to be well-served by key expressways providing convenient accessibility to Seoul and Greater Seoul. A new expressway, that is anticipated to be completed by 2024, will include greater access to the real estate.
“Asia Pacific remains to benefit from quick urbanisation and robust business growth. Ever since the start of COREF, we have actually developed a varied profile of 11 high quality assets throughout 4 countries in Asia Pacific that offer clients appealing risk-adjusted gains. We will certainly continue to leverage our country teams’ on-the-ground knowledge to grow our reserved funds,” Treacy proceeds.
The purchase will bring COREF’s funds under management (FUM) to over $1 billion.
” Take advantage of our group’s special offer sourcing along with execution abilities and substantial 20-year record, we protected this excellent asset at a desirable rate through an off-market exercise,” says Matthew Sohn, head of Korea for CLI. “We anticipate logistics supply to moderate significantly in the midterm given rising building prices, campaign financing challenges and tighter development regulations. We see prospective in this possession as it has a prime area in the north-western region of Anseong, a promising submarket that has attracted significant logistics business to develop base and numerous global investment company to get into in logistics properties.”
” This financial investment enhances COREF’s occurring profile of 10 office and multifamily properties throughout Japan, Singapore and even Australia and branches out the portfolio to the resilient South Korean logistics market,” adds Simon Treacy, chief executive officer of nonpublic equity real estate at CLI. “Interest for high quality logistics centers in the country is robust and enhancing progressively on the back of accelerating ecommerce growth that has resulted in the country getting one of the highest possible ecommerce infiltration rates worldwide. The deal likewise aligns with COREF’s key financial investment styles, like capitalising on emerging submarkets in the fund’s target developed nations and the growing supremacy of ecommerce.”
Since its kickoff in September 2021, COREF has already purchased assets in Australia, Japan including Singapore.