US-headquartered CBRE Global Investors has purchased a seven-storey logistics development in the South Korean city of Ansan, southwest of Seoul, from local developer Sunkyung E&C.
The Logis Valley Ansan property will have 239,000 sq.m. of total gross floor area and is scheduled for completion next month.
“The Shiwha Multi Techno Valley, where Logis Valley Ansan is located, is a strategic location that can accommodate one-day delivery within the Greater Seoul Area and offers access to a large supply of manpower,” the company said in a statement.
“Despite a strong preference for the area, there has been a limited supply of industrial facilities. However, with the development of Logis Valley Ansan, the supply of warehouse facilities in the southwestern Gyeonggi region will be greatly expanded.”
The first six floors will have ramps allowing for container truck access, while tenant offices, a canteen, convenience store, relaxation space will occupy the top floor.
Logis Valley Ansan will end up with 365,000 sq.m. of total usable area due to the mezzanine floor facilities added by the tenants, making it the largest usable area for a single-property logistics facility in Korea.
The asset has secured leases for nearly 65% of total leasable space and is expected to reach full occupancy by the time it is completed.
The Logis Valley Ansan property is the second project that CBRE GI has worked with Sunkyung E&C on after CBRE GI invested in the Logis Valley West-Icheon project last year.
The two firms signed a memorandum of understanding for the development and acquisition of both on-shore and off-shore logistics facilities in Korea in 2018.
CBRE Global Investors is a global real asset investment management firm with US$107.2bn in assets under management.