GIC backs South Korea's Hyundai Logistics

ADF Asset Management, which focuses on South Korea's logistics sector, manages the real estate fund. The manager previously purchased the logistics asset from its developer LogisKoel for $130 million. 

The 126,708 square meters dry storage logistics facility is located in the city of Incheon, an industrial and logistics hub which is well connected to major cities nationwide. Completed in late April this year, the facility is fully master-leased to Hyundai Logistics, a leading third-party logistics and parcel delivery companies in Korea, for 15 years.

The distribution center claims to be the largest part of LogisValley Incheon, the second largest industrial park in Incheon City, and includes several multinational retailers' and distributors' national logistics centers.

"As a long-term investor, we believe in the potential of Korea's growing industrial sector," said Loh Wai Keong, managing director and co-head of Asia for GIC Real Estate, in a statement. "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."

Last November, Canada Pension Plan Investment Board (CPPIB) and Dutch pension fund manager APG Asset Management agreed to form a logistics-focused joint venture in South Korea with e-Shang, a Chinese warehousing operator backed by Warburg Pincus.

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• Topics
• Southeast Asia
• North Asia
• Industrials
• Real estate
• GIC Private
• Singapore
• South Korea
• Logistics