GIC buys two distribution centres in South Korea for US$570m

GIC on Wednesday said it will buy Blocks A and B of Hwaseong Dongtan Logistics Complex in Gyeonggi Province in South Korea for US$570 million through a real estate fund.

The Singapore sovereign wealth fund said Blocks A and B are two newly completed, prime-grade distribution centres. They are part of the Hwaseong Dongtan Logistics Complex, which is located 35 km from Seoul and with good access to the Seoul-Busan Expressway, the No. 1 artery expressway in South Korea. Both blocks are fully leased by quality tenants with long-term leases, said GIC, without specifying details.

The logistics space was bought from K-Eco Logis Co, a subsidiary of Halla Corp and the developer of the assets. The real estate fund is managed by ADF Asset Management, an asset management company that specialises in South Korea's industrial sector.

"This investment is in line with GIC's strategy to own assets with long-term earning potential at reasonable prices and with due regard to risk," GIC said.