Deutsche Bank’s asset management arm DWS has expanded its portfolio to South Korea with the acquisition of a prime logistics property Logiport Icheon in Icheon, Greater Seoul for $57.3 million (KRW 61.2 billion) in an off market transaction.
This deal marks the third logistics acquisition by DWS in Seoul.
DWS, which re-branded itself from Deutsche Asset Management in December last year, acquired the asset on behalf of one of its European real estate funds, it said in an announcement on Tuesday.
Post re-branding and making its debut on the German stock exchange last month, the asset manager is said to be targeting at strengthening its alternative products offerings in structured credit and realty segments and expand in countries like Japan, Korea, Taiwan and Singapore.
The latest acquisition, Logiport Icheon, is a grade A four-level logistics property covering over 45,000 square meters. Its layout comprises a number of docks, yard areas with loading capacity and ramp access to all floors.
Current tenancy reflects a sector mix including Mercedes Benz’s exclusive logistics operator in Asia, Li & Fung for Nike and Converse, and two other local third party logistics (3PL) companies. Considered one of most active logistics sub-markets in South Korea, the site is located in Seoul’s Southeast District, 50 km from Seoul.
“Boosted by the growth of e-commerce in the region, a healthy leasing market, location and tenancy mix makes Logiport Icheon an attractive addition to our fund,’ said Victoria Sharpe, Head of Alternatives, Asia Pacific at DWS.
DWS Group is one of the world’s leading asset managers with EUR 700 billion assets under management as of December 2017.