Key Takeaways
- • CapitaLand Investment Limited's flagship COREF fund crossed S$1 billion in funds under management following acquisition of Anseong Seongeun Logistics Centre in South Korea for S$112 million (US$82.5 million), marking a significant milestone for the regional core-plus strategy.
- • The newly completed Grade A logistics property spans 60,407 square metres of net leasable area across two four-storey buildings with basements, positioned in the north-western Anseong submarket within Gyeonggi province's emerging logistics corridor.
- • Strategic location provides multiple access vectors to Seoul and Greater Seoul population centres via existing expressways, with proximity to a new expressway completion scheduled for 2024 expected to enhance asset accessibility and value.
- • CLI's management identified the acquisition through off-market sourcing, leveraging its 20-year track record in deal execution and citing favourable medium-term logistics supply dynamics driven by rising construction costs, financing constraints, and tighter development restrictions.
- • The transaction expands COREF's portfolio diversification into South Korean logistics assets, capitalizing on increased institutional investor interest and major logistics operator activity in the Anseong submarket.
Summary
CapitaLand Investment Limited announced on 18 September 2023 that its flagship regional core-plus fund, CapitaLand Open End Real Estate Fund (COREF), has exceeded S$1 billion in funds under management following the acquisition of Anseong Seongeun Logistics Centre in South Korea. The purchase price of S$112 million (US$82.5 million) marks a significant expansion milestone for the fund and reflects CLI's continued focus on logistics real estate in the Asia-Pacific region.
The acquired asset is a newly completed Grade A logistics property comprising two four-storey buildings with basement floors totalling 60,407 square metres of net leasable area. The facility is situated in the north-western region of Anseong, an emerging logistics hub within Gyeonggi province. The location provides strategic advantages through primary expressway access to Seoul and major population centres across Greater Seoul, with an additional expressway expected to commence operations in 2024, further enhancing connectivity and accessibility.
CLI's management secured the asset through an off-market transaction, utilizing its deal sourcing and execution capabilities developed over a 20-year operational history. According to the announcement, management expects logistics supply growth to moderate materially in the medium term due to rising construction costs, project financing headwinds, and increasingly restrictive development regulations. This supply environment supports valuations for high-quality assets in prime locations, positioning the Anseong property favourably as Gyeonggi province continues attracting major logistics operators and institutional investment capital to the region.
The acquisition broadens COREF's diversification across geographies and property types within its core-plus mandate, capitalizing on CLI's operational expertise in the South Korean market and structural tailwinds in regional logistics demand.
The acquired asset is a newly completed Grade A logistics property comprising two four-storey buildings with basement floors totalling 60,407 square metres of net leasable area. The facility is situated in the north-western region of Anseong, an emerging logistics hub within Gyeonggi province. The location provides strategic advantages through primary expressway access to Seoul and major population centres across Greater Seoul, with an additional expressway expected to commence operations in 2024, further enhancing connectivity and accessibility.
CLI's management secured the asset through an off-market transaction, utilizing its deal sourcing and execution capabilities developed over a 20-year operational history. According to the announcement, management expects logistics supply growth to moderate materially in the medium term due to rising construction costs, project financing headwinds, and increasingly restrictive development regulations. This supply environment supports valuations for high-quality assets in prime locations, positioning the Anseong property favourably as Gyeonggi province continues attracting major logistics operators and institutional investment capital to the region.
The acquisition broadens COREF's diversification across geographies and property types within its core-plus mandate, capitalizing on CLI's operational expertise in the South Korean market and structural tailwinds in regional logistics demand.
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