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 newly completed, Grade A logistics real property in South Korea for $112 million.
“Asia Pacific continues to gain from rapid urbanisation and robust economic growth. Since the start of COREF, we have constructed a diversified portfolio of 11 high quality assets across 4 countries in Asia Pacific that provide investors attractive risk-adjusted profits. We will certainly remain to leverage our country companies’ on-the-ground proficiency to expand our exclusive funds,” Treacy continues.
” This financial investment enhances COREF’s presenting portfolio of 10 workplace and multifamily properties throughout Japan, Singapore and Australia and branches out the profile to the resilient South Korean logistics field,” adds Simon Treacy, chief executive officer of private equity property at CLI. “Need for high quality logistics centers in the nation is robust and boosting gradually on the back of increasing shopping buildup that has led to the nation getting among the highest ecommerce penetration prices globally. The purchase additionally aligns with COREF’s major financial investment themes, which include capitalising on emerging submarkets in the fund’s target established countries and the growing dominance of shopping.”
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It lies in the north western region of Anseong, an emerging logistics center in the Gyeonggi district. The place is said to be well-served by primary expressways providing quick and easy accessibility to Seoul and even Greater Seoul. A brand-new expressway, which is expected to be finished by 2024, will add better access to the property.
” Leveraging our team’s deal sourcing and implementation capabilities and even extensive 20-year record, we obtained this excellent possession at an attractive rate via an off-market exercise,” claims Matthew Sohn, head of Korea for CLI. “We anticipate logistics produce to moderate extensively in the midterm provided rising building and construction expenses, campaign funding difficulties and also tighter project limitations. We see potential in this possession as it has a top location in the north-western region of Anseong, a promising submarket that has actually attracted major logistics companies to develop base and also several global investment company to invest in logistics properties.”
The commercial property, Anseong Seoungeun Logistics Centre, consists of 2 four-storey structures with cellar grounds. The real estate has a total amount of 60,407 sqm of net leasable location.
The acquisition will certainly take COREF’s funds under management (FUM) to more than $1 billion.
Since its creation in September 2021, COREF has already purchased possessions in Australia, Japan and even Singapore.
