Malaysia pension fund buys Korean logistics center for $70 mn: report

  • 2017-11-03

Malaysia’s Employees Provident Fund (EPF) has closed the acquisition of a logistics center near Seoul for around 75 billion won ($67 million) in its first investment in South Korea’s commercial real estate, according to a local newspaper report.

The purchase of the three-story storage facility with a floor space of 54,780 square meters came as the Malaysian pension fund planned to invest $900 million in South Korean real estate, together with three domestic asset managers, the Seoul Economic Daily said on Nov. 2.

The largest Malaysian pension fund had mandated three South Korean asset managers – Pebblestone Asset Management, IGIS Asset Management and ADF Asset Management – to source investments in South Korean properties, primarily logistics facilities. The latest transaction was made via ADF Asset.

The facility for room-temperature storage is leased by a top South Korean food company and a sportswear maker. It is located in Incheon, Gyeonggi Province, about 65 km southeast of Seoul.

Other global investors including Singapore’s GIC, Temasek Holdings and Blackstone have made their foray into South Korea’s logistics center market over the past few years, in pursuit of steady rental incomes supported by fast-growing online shopping.

Last year, Blackstone bought two storage facilities near Seoul for 70 billion won.

EPF is divesting out of office markets, seen as having peaked, in the UK and Australia and redeploying its capital in Asia and Europe, particularly South Korea, Spain and the Nordic countries, IPE Real Assets reported in May.

<Edited by Yeonhee Kim>