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 recently acquired a freshly finalized, Grade A logistics property in South Korea for $112 million.
The property, Anseong Seoungeun Logistics Centre, consists of 2 four-storey structures with basement grounds. The property has a total amount of 60,407 sqm of net leasable location.
“Asia Pacific remains to take advantage of rapid urbanisation as well as strong economical growth. Since the start of COREF, we have built a varied profile of 11 top quality assets across four nations in Asia Pacific that give capitalists eye-catching risk-adjusted gains. We will certainly remain to utilize our nation organizations’ on-the-ground proficiency to grow our confidential funds,” Treacy proceeds.
” This investment matches COREF’s existing profile of 10 workplace and multifamily properties across Japan, Singapore and Australia and diversifies the portfolio to the resilient South Korean logistics sector,” adds Simon Treacy, chief executive officer of exclusive equity real estate at CLI. “Need for top quality logistics centers in the country is robust and increasing steadily on the rear of speeding up shopping development that has actually caused the country having one of the highest ecommerce infiltration rates worldwide. The purchase likewise lines up with COREF’s vital financial investment motifs, like capitalising on emerging submarkets in the fund’s target created countries and the expanding supremacy of shopping.”
It lies in the north western region of Anseong, an emerging logistics center in the Gyeonggi province. The area is said for being well-served by primary expressways providing convenient accessibility to Seoul and even Greater Seoul. A brand-new expressway, that is anticipated to be finished by 2024, will add higher access to the property.
The acquisition will certainly bring COREF’s funds under management (FUM) to more than $1 billion.
” Take advantage of our group’s offer sourcing and execution capabilities and even substantial 20-year record, we secured this premium property at an appealing rate through an off-market exercise,” states Matthew Sohn, head of Korea for CLI. “We expect logistics supply to moderate significantly in the midterm offered rising construction costs, project funding difficulties as well as tighter development constraints. We see prospective in this possession as it has a key area in the north-western area of Anseong, an up-and-coming submarket that has lured major logistics firms to develop base along with several global investment firms to invest in logistics properties.”
Ever since its inception in September 2021, COREF has already invested in possessions in Australia, Japan and even Singapore.