Kiwoom Asset to liquidate U.S. logistics fund following early sale of assets with near 40% yield

[Source: Kiwoom Asset Management]

Kiwoom Asset Management said Wednesday that it is liquidating Kiwoom Heroes U.S. Logistics Portfolio Real Estate Trust No. 1 earlier than its 7-year maturity upon achieving a cumulative return rate of nearly 40 percent.

Kiwoom Heroes U.S. Logistics Portfolio Real Estate Trust No. 1 is a fund that indirectly invests in six logistics centers in the central and eastern parts of the United States through an external fund product. It collects dividends from other funds and then distributes them to its investors.

The Korean asset manager said the logistics fund in which Kiwoom Heroes U.S. Logistics Portfolio Real Estate Trust No. 1 has invested in completed the sale of underlying assets as of July 29 for $570 million. Proceeds from the sale amounted to $160 million, yielding more than 35 percent.

The company created Kiwoom Heroes U.S. Logistics Portfolio Real Estate Trust No. 1 in May 2019 by raising 76 billion won ($53 million), part of the U.S. logistics fund¡¯s target amount through Korea Investment & Securities. It had set the maturity at seven years with a target to sell assets five years later.

The company said it was able to deliver a significant amount of profits to its investors in just three years after the logistics fund successfully sold assets. It will return the principal with proceeds from sale to investors over two periods. It already made the first payment on Sept. 8. The final payment will be made in the second half of next year.

Kiwoom fund investors received dividends with annual return rate averaging 6 to 7 percent six times over the last years, and cumulative return rate reached around 40 percent after the last dividend payout made last month, said Lee Seung-un, a senior fund manager at Kiwoom.

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