Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2023 Event Calendar
    • Mingtiandi APAC Residential Forum 2023
    • Mingtiandi Asia Logistics Forum 2023
    • Mingtiandi Hong Kong Focus Forum 2023
    • Mingtiandi APAC Data Centre Forum 2023
    • Mingtiandi Asia Office Strategies Forum 2023
    • Mingtiandi Singapore Focus Forum 2023
    • More Events
  • MTD TV
  • People
    • Industry Moves
    • MTD TV Speakers
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

LaSalle Buys Two Icheon Sheds for Korea Logistics JV, Makes Seoul Office Loan

2023/06/07 by Christopher Caillavet Leave a Comment

Logiport Bubal Center-1 in Incheon (Image: LaSalle Investment Management)

LaSalle Investment Management on Wednesday announced the acquisition of two warehouses in Icheon on behalf of a Korean logistics joint venture between the firm and an unnamed Middle Eastern sovereign wealth fund.

The warehouses are run by LaSalle’s Logiport logistics arm and have a combined gross floor area of 53,942 square metres (580,627 square feet). They are 65 percent occupied and are anchor-tenanted under a long-term lease by one of the largest third-party logistics operators in South Korea, LaSalle said in a release.

The investment management affiliate of JLL also disclosed that it made a high-yield loan earlier this year on behalf of its LaSalle Asia Opportunity VI fund to finance the acquisition of a land plot valued at KRW 116 billion ($89 million) in Seoul’s Seongsu district. The unidentified borrower is set to develop a 21,421 square metre office building on the site.

“We are finding attractive risk-adjusted entry points into deals whether investing through equity or through debt, while still targeting the property sectors and locations we maintain conviction on,” said Steve Hyung Kim, senior managing director and head of Korea at LaSalle.

Newly Built Warehouses

The pair of sheds in Icheon’s Bubal district, dubbed Logiport Bubal Center-1 and Logiport Bubal Center-2, were built between 2021 and 2022. Situated in the southeastern corner of Greater Seoul, the warehouses offer occupiers access and connectivity to South Korea’s dense and online-connected consumers, LaSalle said.

Steve Hyung Kim, Head of Korea, LaSalle Investment Management

Steve Hyung Kim, head of Korea at LaSalle

The 10-storey office project in Seoul is expected to break ground this year and finish construction in the first quarter of 2026. The borrower of the collateralised loan has a track record of developing, leasing and selling similar investments, and this will be its fourth office project in Seongsu district.

The Seoul office market has bucked the prevailing trend in other global cities that are pivoting towards some form of work from home, according to JLL Korea, which reported an average office vacancy rate across the capital of 1.1 percent in this year’s first quarter.

“Widened credit spreads have allowed us to execute high-yield secured debt financings on behalf of our opportunistic strategy; and in the logistics sector near to mid-term with the new supply headwinds, we will also selectively invest in recapitalisation situations as the market de-levers from vintage loans maturing against unstabilised projects,” Kim said.

Loaded for Bear

LaSalle announced last year that it had raised more than $2.2 billion in equity for its LaSalle Asia Opportunity VI fund, handily exceeding the firm’s initial target of $1.5 billion.

LAO VI is the sixth in LaSalle’s closed-ended opportunistic fund series focused on Asia Pacific, which seeks to take advantage of mispriced assets with opportunities to add value through repositioning and redevelopment in the region’s key markets.

The vehicle was enriched by a $300 million commitment in the second half of 2021 from the California State Teachers’ Retirement System, which manages a $318.1 billion investment portfolio on behalf of public school educators in America’s biggest state. The support from CalSTERS came around the same time that the fund obtained a $200 million commitment from the Teachers’ Retirement System of Illinois.

Chicago-based LaSalle managed more than $79 billion in assets across private and public real estate property and debt investments as of the fourth quarter of 2022.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Logistics Tagged With: daily-sp, Featured, LaSalle, Logistics, seoul, South Korea

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

  • This field is for validation purposes and should be left unchanged.

MTD TV

data centres
Achieving Carbon Neutrality Critical to Data Centre Investments: MTD TV
Tim Foster
ESR, C&W Point to Robots, Solar Power in Quest for Efficient Shipping: MTD TV

More MTD TV Videos>>

People in the News

Ganen Sarvananthan
TPG Upgrades Asia Managing Partner Sarvananthan to Lead Middle East Expansion
Ronshine chairman and CEO Ou Zonghong
Asia Real Estate People in the News 2023-09-18
Claire Cormier Thielke
Hines Greater China Boss Cormier Thielke Joins Prologis to Lead Asia Investment
Kenny Lam Link REIT
Link CIO Kenny Lam Leaving Asia’s Largest REIT

More Industry Professionals>>

People in the News

TPG Upgrades Asia Managing Partner Sarvananthan to Lead Middle East Expansion

Ganen Sarvananthan

US private equity giant TPG announced this week that it has appointed Ganen Sarvananthan, one of the managing partners … Read More>>

Asia Real Estate People in the News 2023-09-18

Ronshine chairman and CEO Ou Zonghong

Director resignations at a pair of mainland China real estate companies lead this week’s list of personnel moves from … Read More>>

Hines Greater China Boss Cormier Thielke Joins Prologis to Lead Asia Investment

Claire Cormier Thielke

Hines veteran Claire Cormier Thielke has left her post as the US developer’s head of Greater China to join logistics … Read More>>

Link CIO Kenny Lam Leaving Asia’s Largest REIT

Kenny Lam Link REIT

Kenny Lam, chief investment officer for strategic investment at Hong Kong’s Link REIT, has resigned from his role after … Read More>>

More Industry Professionals>>

Latest Stories

Logos co-CEO Trent Iliffe
Logos Inks Deal with TEPCO to Develop 100MW APAC Power Network
CIFI Holdings (Group) Co. Ltd., Headquartered in Shanghai
Henderson Buying 50% of CIFI Guangzhou Project and More Asia Real Estate Headlines
MidlandGate Perth
PAG Buying Perth Mall From CPPIB-Backed Fund After Price Slides 25%

Sponsored Features

Behind the Gate: The Anatomy of a Data Centre
Flexible Solutions for China’s Commercial Real Estate Recovery
Building Property Portfolios Ready for China’s New Economy-Led Rebound

More Sponsored Features>>

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2023 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2023 China Advertising Media Ltd (Samoa). All rights reserved.

  • This field is for validation purposes and should be left unchanged.