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SINGAPORE sovereign investor GIC has invested in a real estate fund which acquired the newly built Hyundai Logistics Distribution Centre, located in the city of Icheon, South Korea, for US$130 million from LogisKoel, the developer of the asset.
The real estate fund is managed by ADF Asset Management Co Ltd, an asset management company specialising in the South Korean logistics sector.
Hyundai Logistics Distribution Centre, spanning 126,708 sq m, is a grade-A dry storage logistics centre located in Icheon, a prime industrial and logistics hub with strong transport links to major cities nationwide.
It is the largest part of LogisValley Icheon, the second largest industrial park in Icheon City and the home of several multinational retailers' and distributors' national logistics centres.
Completed in late April 2016, the centre is fully master-leased to Hyundai Logistics, a top-tier third-party logistics and parcel delivery company in South Korea.
Said Loh Wai Keong, managing director and co-head Asia, GIC Real Estate: "As a long-term investor, we believe in the potential of Korea's growing industrial sector. This asset is well-located in a key industrial market as part of a comprehensive logistics park and will generate a stable long-term income stream."
Kim Chang Hyun, chief executive of ADF Asset Management, said that the acquisition of Hyundai Logistics Distribution Centre is another landmark investment in South Korea's logistics properties market.
"With its highly functional design and specifications providing an effective solution for consolidation needs of major distributors and retailers, coupled with its prime location and a 15-year long-term master lease with a credit tenant, the asset will set an ideal investment example for both international and Korean real estate investors who are increasingly showing interest in the industrial properties sector," he said.
An earlier version of this story incorrectly said that Hyundai Logistics Distribution Centre is located in the city of Incheon, South Korea. GIC has since corrected this and said that the centre is located in Icheon. The article above has been revised to reflect this.