M&G Acquires Second Logistics Facility In Asia
M&G Real Estate, the real estate fund management arm of M&G Investments, has acquired a $131 million (155.5 billion Won) modern logistics center close to Seoul on behalf of its core Asian property strategy managed by Richard van den Berg.
Located south of Seoul, Yongin Baegam Logistics Centre is in an established logistics cluster close to the city’s major highways. The approximately 100,000 square-meter four-story asset comprises all the characteristics of a high specification logistics center, catering to all the demands of modern occupiers. The new building tenants include established third-party logistics operators and retailers.
«We are positive about the fundamentals in Asia Pacific’s logistics sector, particularly in Korea, where supply is limited and demand is strong. The relentless demand for faster delivery will push third-party logistics companies to larger, more centralized distribution centers near key transport hubs and highway interchanges, such as ours,» said Richard van den Berg in a media statement on Monday.
«Location will remain a key requirement as transportation typically accounts for at least half of logistics providers’ total costs. Yongin Baegam Logistics Centre will provide stable and core income to our investors,» said Berg.
This is the second logistics facility for the M&G Asia Property Fund in Korea after Homeplus Hub Logistics Centre, the 64,250 square-meter distribution center acquired in 2017. This purchase coincides with an uptick in consumer spending with expectations for online retailing to grow in Asia Pacific markets from 14 percent to 23 percent by 2023.
As the logistics sector matures and attracts more interest from investors, spreads between logistics and other asset classes in developed markets have narrowed and Korea is expected to follow the demand for modern well-located facilities.