Nuveen Real Estate’s Asia Pacific Cities fund has bought a logistics complex in Namyangju in South Korea. Financial details were not undisclosed.

It is the second asset for the fund, that was launched in November last year and seeded with an $180 m Sydney office block.

Louise Kavanagh, managing director for Asia-Pacific at Nuveen Real Estate, said that Seoul is one of the principal cities for investment for the fund.

Although South Korea ranks as one of the most connected and technology-driven markets in Asia-Pacific, with an online penetration rate of 90%, Kavanagh said less than 5% of its logistics stock is considered modern by global standards.

She said, “We anticipate that the rapid expansion of e-commerce and associated third-party logistics demand in Asia-Pacific, in particular in South Korea, will underpin structural resilience in the sector.”

Sang Han, CEO of Sang Investment, said: “Given the dynamics of the Korean logistics industry, this last-mile distribution centre has the potential to provide substantial rental growth, driven by the country’s increasing demand for same-day delivery services.”

Source: IPE

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