Local asset managers buy new logistics center in Goyang to be leased to CJ Logistics

South Korean asset management firm BlueCove Investment Co. has acquired a large logistics center worth 400 billion won ($337.6 million) under construction in Goyang, Gyeonggi Province to be leased out to CJ Logistics Corp.

BlueCove Investment has signed a contract to buy the new logistics center in Goyang with institutional investors at home and abroad including Hanwha Investment & Securities Co., according to investment banking sources on Tuesday. It is planning to sell down the property to domestic pension funds and mutual aid associations.

Institutions expect an annual return of 8 percent on their investment.

The logistics center under construction is expected to serve as a logistics hub to meet the surging demand for last-mile deliveries in the near cities like Goyang and Paju as well as neighboring Seoul, industry experts say.

Of the two buildings, one for room temperature storage commanding a total floor space of 65,817 square meters (708,448 square feet) will be built by June next year, and the other for cold storage with a total floor area of 41,617 square meters by February 2023.

The country¡¯s largest parcel delivery service company CJ Logistics Corp. has signed a contract to take out a lease on the center in hopes to better respond to surging delivery demand in the northwest of Korea.

Logistics centers have emerged as a hot investment for property investors on explosive online shopping demand amid the Covid-19 outbreak. With expanded early morning door delivery services by e-commerce leaders like Coupang and Market Kurly, the value of logistics centers with cold storage warehouses has been surging in Korea.

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