IGIS Asia Investment Management and QuadReal Property Group have formed a programmatic joint venture to develop logistics assets in Korea.
QuadReal will provide the majority of capital with the IGIS team responsible for originating, developing and operating the assets.
Korea’s e-commerce penetration rate is second only to China and is forecast to accelerate in the coming years.
Peter Kim, managing director, Asia, at QuadReal, said: “Global logistics market fundamentals remain compelling, driven by supply chain reconfiguration requirements and the growth of omni-channel retail. In South Korea we continue to witness the interrelation between e-commerce led occupational demand and a shortage of Grade A space in proximity to dominant urban centres, which is forecast to underpin rental and capital growth.”
Steve Oh, CEO at IGIS Asia Investment Management, added: “The South Korean logistics market is continuing to evolve which will create some interesting investment opportunities delivering attractive risk-adjusted returns.
“We are seeing not only increasing demand for high-quality logistics assets in emerging sub-markets outside of Greater Seoul, such as the Southern provinces, but also from traditional and emerging manufacturing businesses seeking to enhance the cost-effectiveness of their supply chains.”
