Capitaland-PGIM JV Buys $74m Cold Chain Facility In South Korea
Singapore’s CapitaLand Investment (CLI) and PGIM Real Estate have launched a value-add warehouse investment vehicle in South Korea just months after setting up a core logistics strategy in the north Asian nation. The joint venture has already acquired the Hansol Cold Storage Centre in Gwangju city for KRW 90.2 billion ($74 million) to seed the strategy, the partners said in a statement. They now plan to renovate the 26,705 square metre (287,450 square foot) facility for use as a distribution hub to meet the growing demand for last-mile delivery services in the South Korean capital. “Given the favourable demand-supply dynamics and the cold storage logistics property’s prime location with convenient access to Seoul through the expressways, we expect the property to perform well,” said Matthew Sohn, head of Korea for CapitaLand Investment International. “After we upgrade the asset from a pure cold storage facility to a key cold storage logistics distribution centre, we expect to generate higher rental income as we lease the property to new tenants, tapping on South Korea’s growing ecommerce market.” The new strategy marked CapitaLand Investment’s fourth South Korean private fund launched within the past 18 months, after the firm had also joined with PGIM in November to acquire a pair of cold chain facilities from a local catering firm through a core vehicle.
Tags : Capitaland-PGIM JV Cold Chain Facility South Korea Matthew Sohn head of Korea for CapitaLand Investment International Hansol Cold Storage Centre Gwangju city