DWS buys third logistics center in Korea for $57.5 mn

DWS, the asset management arm of Germany’s Deutsche Bank, bought a logistics warehouse in Icheon, South Korea for 61.2 billion won ($57.5 million), making it the fund manager’s third logistics acquisition in the country.

DWS said Tuesday it bought Logiport Icheon through an off-market transaction of one of its European real estate funds. It raised a project fund of around 30 billion won for the acquisition.

Completed in May 2017, Logiport Icheon is a grade A logistics complex with four stories covering more than 45,000 square meters, and is complete with docks, yard areas and ramp access to all floors. It houses a diverse mix of tenants, including Mercedes-Benz’s exclusive logistics operator for Asia, the supply chain manager Li & Fung for Nike and Converse, and two local third-party logistics firms.

Logiport Icheon is one of the most active logistics submarkets in Korea. Located 50 kilometers southeast of Seoul, the site is in close proximity to three major highways that connect to Seoul and the metropolitan area. The rent rate is around 26,500 won per 3.3 square meters and DWS is expected to collect 4 billion won a year in lease profits.

“Boosted by the growth of e-commerce in the region, a healthy leasing market, location and tenancy mix makes Logiport Icheon an attractive addition to our fund,” said Victoria Sharpe, head of alternatives, Asia Pacific at DWS.

This is DWS’s third logistics acquisition in Seoul. The firm said it would be on the lookout for other such investment opportunities in the country.

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