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 front runner local core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has obtained a freshly finished, Grade A logistics real property in South Korea for $112 million.
” This financial investment complements COREF’s existing portfolio of 10 office along with multifamily possessions across Japan, Singapore and even Australia and branches out the profile to the resilient South Korean logistics field,” includes Simon Treacy, CEO of private equity property at CLI. “Interest for quality logistics centers in the country is robust and enhancing gradually on the rear of speeding up e-commerce growth that has actually led to the nation having one of the highest possible ecommerce penetration rates globally. The purchase additionally aligns with COREF’s key financial investment styles, like capitalising on arising submarkets in the fund’s target created nations and the growing dominance of shopping.”
The procurement will certainly bring COREF’s funds under management (FUM) to over $1 billion.
The property, Anseong Seoungeun Logistics Centre, consists of two four-storey buildings with basement levels. The real property has a total amount of 60,407 sqm of net leasable location.
” Take advantage of our group’s offer sourcing along with execution capabilities plus extensive 20-year performance history, we protected this high-quality property at an attractive cost through an off-market exercise,” says Matthew Sohn, head of Korea for CLI. “We assume logistics produce to moderate substantially in the midterm offered increasing building and construction expenses, project funding challenges and also tighter property development restrictions. We see possible in this asset as it has a key location in the north-western region of Anseong, an up-and-coming submarket that has actually attracted major logistics firms to set up base and also several global investment company to get into in logistics investments.”
Since its creation in September 2021, COREF has purchased assets in Australia, Japan including Singapore.
“Asia Pacific continues to benefit from rapid urbanisation and also sturdy business development. Ever since the start of COREF, we have actually built a diversified portfolio of 11 high quality assets across four countries in Asia Pacific that offer clients attractive risk-adjusted returns. We will remain to utilize our nation teams’ on-the-ground competence to expand our private funds,” Treacy proceeds.
It lies in the north western region of Anseong, an emerging logistics centre in the Gyeonggi district. The place is stated to be well-served by key expressways providing quick and easy access to Seoul and even Greater Seoul. A new expressway, that is expected to be completed by 2024, will include better availability to the building.