Qube Industrial’s Pyeongtaek facility is located in one of South Korea’s major logistics hubs
Qube Industrial, a Korean logistics developer, operator and investment manager backed by US private equity giant Warburg Pincus, has expanded its portfolio with the acquisition of a fully-leased logistics facility near Seoul.
Located in the Gyeonggi provincial city of Pyeongtaek, roughly 73 kilometres (45 miles) south of the Korean capital, the 42,853 square metre (461,266 square foot) shed is situated close to major electronics, automotive, and beauty hubs, providing the opportunity to serve some of country’s most vibrant sectors, according to Qube Industrial co-founder and CEO James Lim.
“Our acquisition of the Pyeongtaek logistics center is a significant step in expanding our footprint in South Korea’s logistics real estate market,” Lim said in a release on Thursday. “This facility’s advanced specifications and prime location align with our commitment to meeting the needs of rapidly growing industries, including beauty, electronics, and automotive.”
The deal adds a fifth asset for Qube, which was established in December last year as a joint venture between Warburg Pincus and Seoul-based third party logistics provider and warehouse developer MQ with a seed portfolio of four Seoul-area warehouses.
Life Sciences Tenants
Qube Industrial did not disclose the asset’s name, the identity of the seller or the transaction value, saying only that the property is anchored by domestic listed companies in the life sciences sector. The company pointed to the investment as enhancing portfolio value and reinforcing growth in the Korean market.
James Lim, Co-founder and CEO, QUBE Industrial
“This acquisition exemplifies Qube’s effective strategy of securing high-quality logistics assets in prime locations,” said Se Hwan Oh, CEO of Qube Industrial Asset Management Co. “We are confident that this addition, alongside our recent developments, will enhance our portfolio’s value and reinforce our growth in the South Korean market.”
Completed in December 2023, the four-storey facility has 100 percent dry storage capacity and features vehicle access on each floor, large floor plates, ceiling heights of 9 metres to 11 metres, and direct access to expressways.
The acquisition expands Qube’s portfolio to a combined 363,636 square metres of gross floor area, including stabilised, under construction and development assets all located in the Greater Seoul area.
Qube is led by James Lim, who was a managing director with Oaktree Capital Management in Hong Kong from 2019 through 2022 and also helmed CapitaLand’s private fund business in Singapore as chief executive of CapitaLand Investment Management from 2017 through 2019.
Improving Supply Outlook
With warehouse vacancy having risen in 2022 and 2023 as developers flooded the market, trades of Korean logistics properties fell last year. However, with Korean e-commerce continuing to expand, investors remain confident in long-term demand for logistics space, according to Colliers.
In comments to Mingtiandi last month, analysts with the property consultancy pointed out that, after new supply of logistics facilities hit an all-time high in 2023, rising construction costs and development approval challenges have led to fewer new project launches in 2024, and in the years ahead, opening up opportunities for investors.
Investment in Korea’s logistics sector jumped 45 percent in the third quarter from the preceding three months, with transactions surpassing KRW 1.3 trillion in value, according to an October report by CBRE.
Last month, Blackstone teamed with Seoul-based Pebblestone Asset Management to acquire the Gimpo Seonggwang Logistics Center near Seoul from DWS, the asset management affiliate of Deutsche Bank. Pebblestone had also teamed up with AEW Capital Management in December of last year to purchase a logistics facility in Incheon, according to local news reports.
Blackstone’s purchase came weeks after US fund manager Heitman acquired a warehouse in Gyeonggi under its global core plus fund, with the province also playing host to fellow Chicago-based property investor LaSalle Investment Management’s purchase of two large warehouses in a deal announced in August.
In September, Swiss private equity firm Partners Group teamed with Korean real estate investment firm LB Asset Management to acquire the BRIC Hwaseong Logistics Centre in Gyeonggi, with that deal taking place at a cap rate of over 6 percent, according to MSCI Real Assets.
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