Korean funds to invest $295 mn in Asian warehouse developer e-Shang: report
Nov 21, 2016 (Gmt+09:00)
South Korean institutional investors will buy about 350 billion won ($295 million) worth of senior loans secured by distribution centers of Warburg Pincus-backed logistics firm, e-Shang Redwood Group, in their first investment in a foreign warehouse developer, a local newspaper reported.
Hana Asset Management Co. Ltd. will team up with three to four local institutions, including unidentified pension and savings funds, to purchase the senior loans of e-Shang Redwood, targeting an annual return of about 6%, the Maeil Buiness Newspaper said on Nov. 18, citing investment banking sources.
“Compared to a rapid growth of the e-commerce market in China and other Asian markets, new warehouse supply lacks significantly,” the newspaper quoted an unnamed financial investment industry source.
e-Shang Redwood owns distribution centers across Asia, including China, Japan and South Korea. The whole floor area of the warehouses owned by e-Shang span approximately 1.62 million square meters, according to the daily. Most of them are leased to top online commerce operators such as Amazon.com Inc. and Chinese e-commerce companies, Alibaba.com and JD.com. e-Shang Redwood is the largest third-party landlord for leading e-commerce companies in China, it said in its web site.
Logistics properties have been emerging as an attractive alternative asset class with higher expected returns than office buildings.