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GIC invests in new fund to tap burgeoning Korean logistics

GIC invests in new fund to tap burgeoning Korean logistics

Singapore’s sovereign wealth fund GIC has invested in a real estate fund managed by ADF Asset Management, which specialises in South Korea’s logistics sector, the SWF announced.

The real estate fund recently acquired the newly built Hyundai Logistics Distribution Center for $130.0 million (€117 million) from LogisKoel, the developer of the asset.

The 126,708 square metre grade-A centre, which is fully master-leased to Hyundai Logistics, a third-party logistics and parcel delivery company in Korea, is located in the city of Icheon, South Korea. The transaction was completed in late April 2016.

Commenting on the purchase, managing director and co-head Asia, GIC Real Estate, Loh Wai Keong, said: ‘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.’

CEO of  ADF Asset Management, Kim Chang Hyun, added: ‘With its prime location and a 15-year long-term master lease with a credit tenant, the asset will set an ideal investment example for both international and Korean real estate investors who are increasingly showing interests in the industrial properties sector.’

GIC was established in 1981 and it manages Singapore’s foreign reserves. The fund says that its assets under management ‘well exceed’ $100 billion (€90 billion) but it doesn’t disclose the full size of its assets.

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