CapitaLand Investment private fund buys South Korean logistics property for S$112 million
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CAPITALAND Investment (CLI) on Monday (Sep 18) said its regional private fund acquired a logistics property in Anseong, South Korea, for S$112 million.
The move brings the funds under management of the private regional entity, called CapitaLand Open End Real Estate Fund (Coref), to more than S$1 billion, the property investment manager said.
It also brings the number of South Korean assets under CLI’s portfolio to 13, comprising five logistics assets, four office assets, and four data centres under development.
The high-specifications logistics property has 60,407 square metres of net leasable area and consists of two four-storey buildings with basement floors. It is located within an emerging logistics hub in the Gyeonggi province, close to primary expressways leading to Seoul and key population centres across Greater Seoul.
CLI expects logistics supply to moderate significantly in the medium term, given rising construction costs, project financing challenges and tighter development restrictions, said its head of Korea Matthew Sohn.
“We see potential in this asset as it has a prime location in the north-western 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,” he added.
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Coref is CLI’s flagship regional core-plus fund. Since its creation in September 2021, the fund has invested in four other office assets in Australia, Japan and Singapore and six multi-family properties in central Osaka.
CLI shares closed 1.9 per cent or S$0.06 higher at S$3.22 on Friday.
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