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

It is located in the north western region of Anseong, an emerging logistics hub in the Gyeonggi province. The location is stated to be well-served by main expressways providing convenient access to Seoul and even Greater Seoul. A brand-new expressway, which is expected to be completed by 2024, will include higher accessibility to the building.

“Asia Pacific remains to gain from rapid urbanisation and robust economical growth. Ever since the launch of COREF, we have constructed a varied portfolio of 11 quality investments throughout 4 nations in Asia Pacific that offer capitalists appealing risk-adjusted gains. We will certainly remain to take advantage of our nation companies’ on-the-ground expertise to expand our exclusive funds,” Treacy continues.

” This investment matches COREF’s occurring profile of 10 office along with multifamily possessions across Japan, Singapore including Australia and branches out the profile to the durable South Korean logistics sector,” adds Simon Treacy, chief executive officer of nonpublic equity real estate at CLI. “Need for top quality logistics facilities in the country is robust and increasing steadily on the rear of increasing ecommerce development that has actually caused the country having one of the highest possible ecommerce penetration rates internationally. The deal additionally aligns with COREF’s major financial investment themes, such as capitalising on emerging submarkets in the fund’s target developed nations and the expanding dominance of shopping.”

Sky Eden condominium

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

CapitaLand Open End Real Estate Fund (COREF), the front runner local core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has already acquired a newly finished, Grade A logistics real property in South Korea for $112 million.

” Take advantage of our team’s offer sourcing and implementation abilities and even substantial 20-year performance history, we obtained this high-quality possession at an appealing rate via an off-market exercise,” says Matthew Sohn, head of Korea for CLI. “We anticipate logistics produce to moderate significantly in the midterm given increasing building and construction prices, assignment funding challenges and tighter property development restrictions. We see potential in this property as it has a key place in the north-western area of Anseong, a promising submarket that has actually attracted major logistics business to establish base and several global investment firms to invest in logistics properties.”

Since its kickoff in September 2021, COREF has invested in assets in Australia, Japan and even Singapore.

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

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