CLI’s flagship regional fund acquires newly-completed Grade A logistics property in South Korea for $112 mil

The commercial property, Anseong Seoungeun Logistics Centre, comprises 2 four-storey structures with cellar floors. The property has a total amount of 60,407 sqm of net leasable location.

” This financial investment complements COREF’s presenting profile of 10 office and multifamily possessions throughout Japan, Singapore and Australia and diversifies the profile to the durable South Korean logistics market,” adds Simon Treacy, chief executive officer of nonpublic equity property at CLI. “Interest for quality logistics centers in the nation is durable and increasing progressively on the rear of accelerating e-commerce development that has caused the nation getting among the greatest ecommerce penetration prices worldwide. The transaction also coordinates with COREF’s vital investment styles, like capitalising on arising submarkets in the fund’s target created nations and the growing dominance of shopping.”

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“Asia Pacific continues to benefit from rapid urbanisation as well as robust economical development. Since the launch of COREF, we have actually developed a diversified profile of 11 top quality assets throughout 4 nations in Asia Pacific that provide capitalists attractive risk-adjusted returns. We will continue to utilize our nation teams’ on-the-ground expertise to expand our confidential funds,” Treacy continues.

It is located in the north western area of Anseong, an emerging logistics hub in the Gyeonggi state. The place is stated as being well-served by main expressways providing convenient accessibility to Seoul and even Greater Seoul. A brand-new expressway, which is expected to be completed by 2024, will certainly include better accessibility to the property.

” Take advantage of our group’s deal sourcing along with implementation capabilities plus considerable 20-year performance history, we protected this premium asset at an attractive cost through an off-market exercise,” states Matthew Sohn, head of Korea for CLI. “We anticipate logistics produce to moderate significantly in the midterm given increasing building and construction expenses, project funding difficulties and also tighter development limitations. We see prospective in this possession as it has a key location in the north-western region of Anseong, a promising submarket that has actually lured significant logistics business to set up base and also numerous global investment firms to buy into in logistics properties.”

The acquisition will carry COREF’s funds under management (FUM) to more than $1 billion.

Ever since its inception in September 2021, COREF has invested in properties in Australia, Japan including Singapore.

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 property in South Korea for $112 million.


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