{"id":359335,"date":"2023-09-18T20:42:27","date_gmt":"2023-09-18T12:42:27","guid":{"rendered":"https:\/\/www.mingtiandi.com\/?p=359335"},"modified":"2023-09-18T22:37:18","modified_gmt":"2023-09-18T14:37:18","slug":"capitaland-core-plus-fund-buys-korea-logistics-hub","status":"publish","type":"post","link":"https:\/\/www.mingtiandi.com\/real-estate\/logistics\/capitaland-investment-expands-core-plus-fund-into-korea-with-83m-logistics-buy\/","title":{"rendered":"CapitaLand Investment Expands Core-Plus Fund into Korea with $83M Logistics Buy"},"content":{"rendered":"
\"The

The Anseong Seongeun Logistics Centre was completed in April (Source: CLI)<\/p><\/div>\n

Singapore-listed CapitaLand Investment (CLI) has acquired a newly built logistics facility near Seoul, South Korea for S$112 million ($82.5 million), making its first buy in Korea and the initial industrial deal on behalf of its flagship regional core-plus fund.<\/p>\n

CLI\u2019s addition to its CapitaLand Open End Real Estate Fund (COREF) is the Anseong Seongeun Logistics Centre, a 60,407 square metre (650,216 square foot) warehouse complex located 80 kilometres (49.7 miles) south of the capital in Gyeonggi province, the company announced on Monday. A company representative identified the seller as a Korean asset management company.<\/p>\n

\"Altus<\/a><\/div><\/p>\n

The acquisition brings COREF\u2019s funds under management to over S$1 billion and comes just five months after CLI expanded its COREF strategy into Japan with a $105.9 million multi-family acquisition in April<\/a>. That deal also represented the fund\u2019s first residential investment.<\/p>\n

Simon Treacy, CLI\u2019s CEO for private equity real estate, traced this latest move to the growing distribution needs of Korea\u2019s online shopping industry.<\/p>\n

\u201cDemand for quality logistics facilities in the country is robust and increasing steadily on the back of accelerating e-commerce growth that has resulted in the country having one of the highest e-commerce penetration rates globally,\u201d Treacy said.<\/p>\n

Supply Seen Falling<\/h3>\n

The Seongeun Logistics Centre, completed in April, sits within an emerging logistics hub in northwestern Gyeonggi province and is linked to major highways which provide connectivity to the capital city and access to key population centres across Greater Seoul. A new expressway opening in 2024 will further boost connectivity in the area according to the press statement.<\/p>\n

\"Simon

Simon Treacy, CLI\u2019s CEO for private equity real estate<\/p><\/div>\n

With the deal marking the second time that CLI has expanded its COREF fund into a new market sector and a new geography this year, Treacy indicated that this latest acquisition allows for further rebalancing of the strategy.<\/p>\n

\u201cThis investment complements COREF\u2019s existing portfolio of 10 office and multifamily assets across Japan, Singapore and Australia and diversifies the portfolio to the resilient South Korean logistics sector,\u201d Treacy said.<\/p>\n

CLI South Korea head Matthew Sohn said the deal gives the fund entry into a top shed hub at an attractive price.<\/p>\n

\u201cWe see potential in this asset as it has a prime location in the northwestern region of Anseong, an up-and-coming submarket that has attracted major logistics companies to set up base and several global investment firms to invest in logistics assets,\u201d Sohn said.<\/p>\n

\u201cWe expect logistics supply to moderate significantly in the midterm given rising construction costs, project financing challenges and tighter development restrictions,\u201d he added.<\/p>\n

\"\"<\/a><\/p>\n

There has been a surge of new warehouse supply in and around Seoul, including Gyeonggi province and Incheon this year. According to JLL data<\/a>, overall vacancy in Greater Seoul rose to a record 16 percent in the second quarter from under 13 percent in the first three months of the year, while rent growth slowed to 0.2 percent during the same period as tenants gained the upper hand.<\/p>\n

Anseong recorded the largest new supply in the southern part of the Seoul capital area with six new centres completed in the second quarter. JLL estimated that developers will roll out a total of 1.37 million pyeong (4.5 million square metres) of new logistics space in Korea during the full year of 2023, although future supply is expected to fall significantly due to severe construction delays.<\/p>\n

Beds Then Sheds<\/h3>\n

The Korean logistics facility adds to COREF\u2019s 10 other assets in APAC comprising four office assets in its home city and Australia, and six multifamily projects in Japan.<\/p>\n

CLI\u2019s April acquisition included six Osaka apartment developments with the projects situated near the commercial districts of Umeda and Namba. That rental residential portfolio is expected to offer a total of 428 one-bedroom apartments upon completion, with the company saying at the time that it expects to finish the projects from May 2023 through June 2024.<\/p>\n

\"\"<\/a><\/div><\/div>\n

In March of 2022 the strategy acquired a 30 percent stake in what is now the 29-storey CapitaSky office tower at 79 Robinson Road<\/a> in downtown Singapore as part of a S$1.26-billion joint buy alongside SGX-listed CapitaLand Integrated Commercial Trust (CICT).<\/p>\n

Mitsubishi Backs India Vehicle<\/h3>\n

CLI\u2019s announcement of its Korean acquisition came just days after the company revealed a new partner in its India efforts.<\/p>\n

After announcing last month that it had reached a S$368 million first-close<\/a> of its CapitaLand India Growth Fund, a CapitaLand representative confirmed to Mingtiandi late last week that Mitsubishi Estates had contributed more than 70 percent of that equity.<\/p>\n

The real estate arm of one of Japan\u2019s largest conglomerates chipped in S$263 million of the total cash raised to date for the strategy, which aims to invest in grade A business parks in Chennai, Bangalore, Hyderabad and Pune, India.<\/p>\n

The investment gives Mitsubishi Estates a 50 percent stake in the fund, which aims to raise S$525 million, according to CapitaLand Investment\u2019s earlier statement.<\/p>\n","protected":false},"excerpt":{"rendered":"

Singapore-listed CapitaLand Investment (CLI) has acquired a newly built logistics facility near Seoul, South Korea for S$112 million ($82.5 million), making its first buy in Korea and the initial industrial deal on behalf of its flagship regional core-plus fund.<\/p>\n

CLI\u2019s… Read More>><\/a><\/p>\n","protected":false},"author":12201,"featured_media":359337,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[5385],"tags":[8633,8833,5359,5161,2802,5391],"ppma_author":[8848],"authors":[{"term_id":8848,"user_id":12201,"is_guest":0,"slug":"beatrice-laforga","display_name":"Beatrice Laforga","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/d4be689d8f5a82939d685df6ef171fcb?s=96&d=mm&r=g","user_url":"","last_name":"Laforga","first_name":"Beatrice","description":""}],"_links":{"self":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/359335"}],"collection":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/users\/12201"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/comments?post=359335"}],"version-history":[{"count":0,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/359335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media\/359337"}],"wp:attachment":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media?parent=359335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/categories?post=359335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/tags?post=359335"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/ppma_author?post=359335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}