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A promotional image of TJ Logistics Center (Koramco REITs & Trust) |
Koramco REITs & Trust said Friday its real estate investment trust has closed its acquisition of a cold chain logistics warehouse tenanted by Nasdaq-listed e-commerce giant Coupang for roughly 360 billion won ($318.5 million) in the western port city of Incheon.
The deal marks the biggest single logistics asset to be purchased by a REIT in the country by transaction size so far, the real estate investing subsidiary of clothing firm LF said.
The warehouse, TJ Logistics Center, is a seven-story building with 88,230 square meters of gross floor area. Located near the Port of Incheon, the refrigerated logistics center was completed in March to meet soaring demand for the delivery of fresh groceries and meal kits in the Greater Seoul area. The acquisition deal was signed in August 2020, before construction was finished.
Koramco’s REIT has signed a five-year master lease contract with Coupang, which terminates in April 2026. The REIT targets a 8.5 percent internal rate of return for five years for its REIT investors, including the Public Officials Benefit Association, KT&G, Samsung Securities and Hanwha Investment & Securities.
Koramco said it had belief in Incheon’s potential to grow as a logistics hub as new supply of logistics facilities in southeastern Gyeonggi Province are becoming increasingly limited due to regulations.
By Son Ji-hyoung (
consnow@heraldcorp.com)
