M&G Real Estate acquires logistics assets in South Korea and Japan for $211m
Transactions - NOVEMBER 6, 2017

M&G Real Estate acquires logistics assets in South Korea and Japan for $211m

by Andrea Waitrovich

M&G Real Estate Asia, the real estate fund management arm of M&G Investments, has acquired two logistics properties for a total sales price of $211 million.

The acquisitions were made on behalf of M&G Real Estate’s core Asia property strategy, managed by Richard van den Berg.

The logistics assets include the Homeplus Hub Logistics Centre in South Korea, acquired for $136 million, and Higashi Ogijima Logistics Centre in Japan, purchased for $75 million.

“We are pleased to expand our logistics portfolio with our first acquisition in South Korea, and second in Japan,” said van den Berg. “Together with our other seven logistics properties in Singapore, Hong Kong and Australia, including one under development in Japan, we now have industry coverage across all of the countries in which we invest, consistent with our commitment to progressively increase our allocation to this sector for its long-term income and growth characteristics.”

Homeplus Hub Logistics Centre is a fully leased prime distribution facility located in Ansung City and fully tenanted by Homeplus, South Korea’s second-largest hypermarket operator. The facility is central to Homeplus’ logistics network, connecting more than 400 suppliers and serving close to 100 hypermarkets throughout South Korea.
Higashi Ogijima Logistics Centre is a modern, high-grade facility located in Kawasaki Port in Greater Tokyo. Fully multi-let to two logistics tenants, the facility is well located with excellent access to the prime Tokyo Bay area and the Metropolitan Expressway Bay Shore Route, and in close proximity to Haneda International Airport.

“We have invested in Higashi Ogijima given its resilient business model and prime location through its access to major arterial roads,” said Jing Dong Lai, acquisitions director, M&G Real Estate Asia. “As a long-term investor, we are confident in the continued growth within the Japan logistics sector given the robust leasing demand observed.”

M&G’s core Asia property strategy has increased over the last few years and had more than $3.2 billion in assets as of June 30, 2017. It is the largest core open-ended institutional property fund solely investing in Asia Pacific, with 27 investments across Australia, Hong Kong, Japan, Singapore and South Korea.


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