Koramco Life Infra REITs Selected as Preferred Bidder for Anyang Logistics Center Acquisition

Koramco Life Infra REITs, which is rapidly shifting its portfolio away from a gas station-centric focus to logistics, office, and hotel assets, has initiated the acquisition of a core logistics asset located in a prime area of the Seoul metropolitan region.

Exterior view of Anyang Logistics Center. Provided by Kolmarpkg.com

On August 27, Koramco Life Infra REITs announced that, in consortium with Samsung Securities, it has been selected as the preferred bidder to acquire "Anyang Logistics Center," an urban ambient logistics facility in Anyang, Gyeonggi Province. The acquisition will be carried out utilizing the existing financial capacity and funding structure, without a separate paid-in capital increase. The transaction is expected to close in the fourth quarter after asset due diligence and regulatory approvals.

Anyang Logistics Center, completed in 2023, is an advanced, ambient logistics facility with a gross floor area of approximately 95,475 square meters (around 28,881 pyeong). It is located near Seoul’s Gangnam district and offers truck docking access on every floor. Notably, the facility is fully leased with an occupancy rate of 99.3% and has a WALE (weighted average lease expiry) of 6.71 years, minimizing vacancy risk. Major tenants include Coupang, Nongshim, GeoYoung, and Yongma Logis, all considered to be high-quality lessees.

Koramco Life Infra REITs plans to acquire the facility at a price in the mid-9 million won range per pyeong based on gross floor area. Considering its proximity to Gangnam, new-facility standards, the occupancy rate of over 99%, and its long-term leasing structure, the company views the acquisition price as highly competitive compared to similar, high-quality logistics assets in the metropolitan area.

This acquisition is part of Koramco Life Infra REITs’ ongoing efforts to diversify its investments. In fact, in May, the company incorporated eleven Hyundai Motor operational property sites through an investment in the Hyundai Motor Securitization REIT, and is currently developing a small-to-medium-sized hotel for tourists in Jaedong, Seoul. The company is reducing its gas station asset ratio—which exceeded 90% following its IPO—and expanding into logistics, hotel, office, and mobility sectors. Through this transition, the NOI (net operating income) yield for the portfolio has risen from 4.0% to 4.9%, while the logistics sector's NOI yield now stands at 5.4%, boosting the overall portfolio average.

Anyang Logistics Center was originally an LF multi-purpose warehouse, which was transformed into an advanced ambient logistics center after Koramco Asset Trust established "Kocrep Anyang PFV" for redevelopment. In order to proactively address any conflicts of interest related to the asset sale, Koramco Asset Trust selected Jones Lang LaSalle (JLL), a global real estate services firm, as the lead manager and conducted a public auction. Out of five bidders, it was the Koramco Life Infra REITs and Samsung Securities consortium that secured preferred bidder status. The final transaction will be confirmed following the Ministry of Land, Infrastructure and Transport’s review, REITs license approval, and board consent.

A representative from Koramco Life Infra REITs stated, "In the logistics center market of the Seoul metropolitan area, new supply has fallen dramatically, making prime ambient logistics assets with superior locations and tenant structures increasingly scarce. Anyang Logistics Center not only covers the Gangnam consumer market in Seoul but also stands out as an asset with limited new supply, a high occupancy rate, and long-term leases – all of which we regard as key strengths."

This content was produced with the assistance of AI translation services.