Credit Suisse Asset Management’s property arm has acquired two last-mile warehouses in the Seoul Capital Area, its first transaction in South Korea’s commercial property market.
Credit Suisse Asset Management Global Real Estate purchased the 49,868 sq.m. Icheon 2 DC warehouse and the 36,396 sq.m. DC Moga warehouse on behalf of CS REF International, the firm said.
Icheon 2 DC warehouse (image: Credit Suisse)
The price wasn’t disclosed, however Korean Investors reported Credit Suisse paid 120bn won ($104m) for the two assets.
The grade A dry-storage sheds serve as urban warehouses and are fully let to leading third-party logistics companies.
“Logistics properties in South Korea offer an attractive yield pickup over office real estate that is hard to find in Western markets today,” said Christoph Schumacher, head of global real estate at Credit Suisse Asset Management.
“Moreover, the growing third-party logistics market in South Korea and the tight supply of suitable warehouses in the Seoul Capital Area look destined to fuel further rental income increases in the future.”
DC Moga warehouse (image: Credit Suisse)
Fund manager Marc-Oliver Tschabold noted that booming online trade was driving growing tenant demand in the attractive South Korean logistics property market.
The transaction follows CBRE Global Investors’ purchase of a 239,000 sq.m. multi-storey logistics development in the South Korean city of Ansan, southwest of Seoul, last month.
Credit Suisse AM manages more than CHF 405bn of assets and is part of Credit Suisse’s international wealth management division.