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 already acquired a newly finalized, Grade A logistics real estate in South Korea for $112 million.
” This investment enhances COREF’s existing portfolio of 10 workplace together with multifamily possessions throughout Japan, Singapore including Australia and diversifies the profile to the resilient South Korean logistics field,” adds Simon Treacy, CEO of exclusive equity realty at CLI. “Need for high quality logistics facilities in the nation is robust and boosting gradually on the rear of increasing shopping progression that has actually caused the country getting among the highest possible ecommerce infiltration rates worldwide. The transaction additionally lines up with COREF’s major investment themes, such as capitalising on emerging submarkets in the fund’s target established countries and the growing supremacy of ecommerce.”
The purchase will certainly bring COREF’s funds under management (FUM) to over $1 billion.
The property, Anseong Seoungeun Logistics Centre, consists of 2 four-storey structures with basement floors. The real estate has a total amount of 60,407 sqm of net leasable location.
” Leveraging our group’s special offer sourcing and execution abilities plus comprehensive 20-year track record, we secured this premium property at an appealing price through an off-market exercise,” states Matthew Sohn, head of Korea for CLI. “We anticipate logistics supply to moderate significantly in the midterm given rising building and construction expenses, campaign financing difficulties and also tighter development limitations. We see prospective in this asset as it has a key location in the north-western area of Anseong, an up-and-coming submarket that has lured major logistics companies to develop base along with numerous global investment company to buy into in logistics investments.”
It lies in the north western region of Anseong, a developing logistics center in the Gyeonggi district. The place is said as being well-served by main expressways providing easy accessibility to Seoul and Greater Seoul. A new expressway, which is anticipated to be finished by 2024, will certainly include better availability to the real estate.
“Asia Pacific remains to gain from quick urbanisation as well as sturdy business development. Ever since the release of COREF, we have developed a diversified profile of 11 top quality assets across four countries in Asia Pacific that provide investors attractive risk-adjusted profits. We will certainly continue to leverage our nation companies’ on-the-ground competence to expand our private funds,” Treacy continues.
Ever since its kickoff in September 2021, COREF has already invested in possessions in Australia, Japan and Singapore.