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Tuesday, November 29, 2022
HomeAsiaQuadReal, IGIS Asia Form Korean Logistics JV

QuadReal, IGIS Asia Form Korean Logistics JV

IGIS and its Canadian partners tackle South Korea’s hut shortage

Canada’s QuadReal Property Group and Singapore-based IGIS Asia Investment Management have formed a $1 billion joint venture to develop logistics assets in South Korea, home to IGIS AIM’s parent group.

QuadReal will provide the bulk of the capital for the JV, with the IGIS team responsible for structuring, developing and operating the asset, the partners said. on release.

The joint venture will take advantage of what the partners describe as highly favorable structural factors supporting demand for logistics space in South Korea, including the accelerating adoption of e-commerce and the acute shortage of Grade A tenant accommodation.

said Peter Kim, Managing Director of Asia at QuadReal, based in Vancouver. “South Korea continues to witness an interrelationship between e-commerce-driven occupational demand and a shortage of Grade A space close to dominant urban centers, which is projected to support rental and capital growth. .”

underserved in the hut

The partners pointed out that South Korea’s e-commerce penetration rate is second only to China, but the modern per capita stock of logistics space is well below the level of other developed countries.

peter kim

QuadReal’s Peter Kim

Facilities under the new joint venture will appeal to e-commerce, 3PL, retail and cold storage companies to meet changing consumer patterns as South Korean retail continues to move online. Designed and developed.

IGIS AIM CEO Steve Oh said the country’s evolving logistics market will create interesting investment opportunities and deliver attractive risk-adjusted returns.

“We are keen to meet the growing demand for high-quality logistics assets in emerging submarkets outside of Greater Seoul, such as Nambu, as well as traditional and emerging manufacturing industries looking to make their supply chains more cost-effective. We are also seeing an increase in demand from the industry,” he said.

global theme

Established 2 years agoIGIS AIM is an overseas subsidiary of South Korean investment giant IGIS Asset Management, with total assets under management of $45.6 billion at the end of 2021.

The parent company’s move in the global logistics market includes a $170 million Amazon warehouse in Delawareobtained separately Three Amazon Logistics Centers $390 million in the US (alongside Hana Financial Investment) Seven DHL facilities in northern Italy For $61 million (along with Australia’s Cromwell Property Group), these deals will all take place in 2020.

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With $67.1 billion in assets under management, QuadReal is a partner in a $4.9 billion project. European Logistics Development Fund Canada Pension Plan Investment Board and Singapore-based GLP, and $1 billion China Logistics Development Partnership With New Ease backed by Warburg Pincus.

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