Heitman Adds Greater Seoul Shed Under Global Core-Plus Fund

Heitman continues to deploy capital in Asia Pacific under its global core-plus focused strategy, with the US fund manager on Thursday announcing the acquisition of a distribution centre in South Korea.

The property, located an hour’s drive from central Seoul in the capital’s surrounding Gyeonggi province, is situated in the Anseong logistics market bordering Icheon, Heitman said in a release. The seller and financial details weren’t disclosed.

The investment marks a re-entry to the Korean logistics sector after the firm earlier exited its investment in a warehouse portfolio in Gyeonggi’s Yeoju submarket via a sale to a regional REIT, according to Heitman.

“This acquisition represents a significant milestone in Heitman’s strategy to further expand in key global real estate markets with strong fundamentals,” said Gordon Black, senior managing director at Heitman and portfolio manager for the global core-plus strategy. “The demand for well-located, efficient logistics properties continues to grow, driven by evolving consumer trends and increasing demand for modernised distribution infrastructure.”

Logistics Hot Zone

Heitman gave no specifics about the warehouse’s name, size or location, saying only that the facility enjoys proximity to major expressways and direct access to Seoul in an area favoured by third-party logistics operators and manufacturers.

Anseong, on the south-central fringe of the Seoul metro area, also played host to LaSalle Investment Management’s purchase of two large warehouses in a deal announced in August. The $450 million buy from construction firm Jisan Engineering was South Korea’s largest logistics transaction in the first half of 2024, according to a report by Cushman & Wakefield.

In 2023, CapitaLand Investment acquired the newly built Anseong Seongeun Logistics Centre from Gravity Asset Management for $82.5 million, marking the Singapore-listed firm’s first buy in South Korea and the initial industrial deal on behalf of its flagship regional core-plus fund.

Heitman previously acquired a pair of newly developed, fully leased warehouses in Yeoju in separate deals completed in mid-2020. Less than a year later, internet reports indicated that the two sheds, both tenanted to KKR-backed fashion retailer Musinsa, were already back on the market.

Strategy Casts Wide Net

Heitman’s latest Korean shed buy comes as the firm revealed its purchase of three apartment buildings in Japan this week under the global core-plus focused strategy. The fund manager said the 257-unit portfolio in Osaka would benefit from strong rental demand and provide a buffer against inflation.

The investment followed Heitman’s entry into the Japanese residential market in late 2021 with the acquisition of eight multi-family properties totalling 329 units in Tokyo.

Headquartered in Chicago, Heitman had $50 billion in assets under management as of June.