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 2 four-storey buildings with basement floors. The property has a total of 60,407 sqm of net leasable location.
CapitaLand Open End Real Estate Fund (COREF), the flagship local core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has obtained a newly finalized, Grade A logistics property in South Korea for $112 million.
It lies in the north western area of Anseong, an emerging logistics centre in the Gyeonggi state. The location is claimed to be well-served by main expressways providing convenient access to Seoul and even Greater Seoul. A new expressway, that is anticipated to be finished by 2024, will include greater accessibility to the real estate.
“Asia Pacific remains to benefit from quick urbanisation as well as robust economic development. Ever since the start of COREF, we have indeed built a diversified portfolio of 11 high quality assets across 4 countries in Asia Pacific that give investors attractive risk-adjusted gains. We will certainly remain to utilize our nation companies’ on-the-ground competence to expand our exclusive funds,” Treacy proceeds.
” This investment complements COREF’s existing profile of 10 office and multifamily properties across Japan, Singapore including Australia and branches out the profile to the resistant South Korean logistics market,” includes Simon Treacy, CEO of exclusive equity property at CLI. “Interest for high quality logistics facilities in the nation is durable and increasing gradually on the rear of accelerating e-commerce buildup that has actually caused the nation having one of the highest possible ecommerce penetration rates worldwide. The transaction additionally lines up with COREF’s vital investment styles, which include capitalising on arising submarkets in the fund’s target developed countries and the growing prominence of e-commerce.”
The acquisition will certainly take COREF’s funds under management (FUM) to over $1 billion.
” Take advantage of our team’s deal sourcing and implementation capacities plus considerable 20-year record, we obtained this high-quality possession at an attractive cost by means of an off-market exercise,” states Matthew Sohn, head of Korea for CLI. “We expect logistics produce to moderate significantly in the midterm given rising building prices, campaign financing demands as well as tighter development limitations. We see possible in this property as it has a prime location in the north-western region of Anseong, a promising submarket that has lured significant logistics companies to develop base along with a number of global investment company to get into in logistics properties.”
Ever since its kickoff in September 2021, COREF has bought assets in Australia, Japan and even Singapore.
