AEW Capital Management has made its first logistics investments in South Korea with the forward acquisition of a logistics portfolio in the Greater Seoul Area for USD538.2 million.
The assets, the Yeoju Ganam Logistics Center and Incheon Wongchang-dong Logistics Center, are expected to complete in 2022/2023.
The assets are Grade-A logistics facilities that offer a mix of cold and dry storage floors with vehicular access via ramps and docking stations.
They are located at major logistics submarkets within the Greater Seoul Area that provide nationwide coverage and distribution via expressways leading to all parts of the Korean peninsula.
Yeoju Ganam Logistics Center comprise four buildings, located in Yeoju approximately 50km southeast of Gangnam Business District. Nearby is Yeoju JC, a highway junction that links two key expressways that provide access to major satellite cities in the Greater Seoul Area.
Incheon Wongchang-dong Logistics Center is a nine-storey building located in Incheon, within close proximity to Incheon North Port, Incheon International Airport and Yeouido Business District. This property boasts a great location for a last-mile delivery hub within western Seoul. Given its strategic locations, both assets are anticipated to attract a broad base of tenants such as third party logistics (3PL) providers and corporate users with distribution needs.
“We are proud to present our first logistics investments in South Korea. This acquisition represents a unique opportunity to purchase two large-scale, mixed-use logistics facilities that are strategically located to major transportation networks,” said Michael Moon, AEW’s Country Manager – Korea.
“With growing leasing demand from e-commerce players and 3PL operators with nationwide distribution needs, these assets should benefit from the current and projected market fundamentals of the logistics sector in South Korea. We believe it is a great opportunity to gain exposure to a sector with strong demand projections coupled with steady rental growth,” added Jason Lee, CIO Asia Pacific for AEW.