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 flagship local core-plus fund of CapitaLand Investment (CLI) 9CI -0.93%, has obtained a newly finalized, Grade A logistics real property in South Korea for $112 million.
The commercial property, Anseong Seoungeun Logistics Centre, comprises two four-storey buildings with basement floors. The property has a total amount of 60,407 sqm of net leasable area.
Since its creation in September 2021, COREF has invested in possessions in Australia, Japan including Singapore.
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” Take advantage of our team’s special offer sourcing and implementation abilities plus comprehensive 20-year track record, we secured this high-quality property at an attractive rate by means of an off-market exercise,” states Matthew Sohn, head of Korea for CLI. “We expect logistics produce to moderate extensively in the midterm given rising building expenses, project funding demands and also tighter property development restrictions. We see prospective in this property as it has a top location in the north-western region of Anseong, a promising submarket that has lured major logistics firms to develop base along with a number of global investment firms to invest in logistics properties.”
“Asia Pacific continues to benefit from rapid urbanisation and strong economic development. Since the launch of COREF, we have actually developed a varied portfolio of 11 top quality assets throughout four countries in Asia Pacific that provide investors eye-catching risk-adjusted gains. We will certainly remain to take advantage of our country organizations’ on-the-ground proficiency to grow our confidential funds,” Treacy proceeds.
The procurement will certainly bring COREF’s funds under management (FUM) to over $1 billion.
It is located in the north western area of Anseong, an emerging logistics center in the Gyeonggi province. The place is said as being well-served by main expressways providing convenient accessibility to Seoul and even Greater Seoul. A new expressway, that is expected to be finished by 2024, will certainly include better accessibility to the property.
” This investment complements COREF’s presenting profile of 10 office along with multifamily assets across Japan, Singapore and even Australia and diversifies the profile to the resilient South Korean logistics market,” adds Simon Treacy, chief executive officer of nonpublic equity real estate at CLI. “Need for quality logistics centers in the country is robust and increasing gradually on the rear of speeding up ecommerce buildup that has actually led to the country getting among the greatest ecommerce infiltration rates internationally. The purchase likewise aligns with COREF’s essential investment motifs, such as capitalising on arising submarkets in the fund’s target established countries and the expanding dominance of ecommerce.”
