GIC, Singapore's sovereign wealth fund, has purchased the newly-built Hyundai Logistics Distribution Center, located in the city of Incheon, South Korea, for $130 million.
GIC invested alongside ADF Asset Management, an asset management company specialized in South Korea's logistics sector, which will be the asset manager for the property which was acquired from its developer LogisKoel.
“As a long-term investor, we believe in the potential of Korea's growing industrial sector. 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,” commented Loh Wai Keong, managing director and co-head, Asia, GIC Real Estate.
The property is a 1.3 million square foot, grade-A, dry storage logistics center. It is located in the city of Incheon, a prime industrial and logistics hub with strong transport links to major cities nationwide. It is the largest part of LogisValley Incheon, the second largest industrial park in Incheon City.
The investment in Korea is not the sovereign wealth fund's first. In May last year, it teamed-up with the Canada Pension Plan Investment Board (CPPIB) to form a joint venture partnership to acquire a retail mall in Seoul for $263 million.
GIC Real Estate manages a multi-billion dollar portfolio of both direct and indirect property investments worldwide. The investor has exposure to multiple property sectors including office, retail, residential, industrial and hospitality. Apart from making both direct and indirect investments into real estate, the group also undertakes joint ventures with external managers, invests in public real estate securities and makes commitments to private real estate funds.