ESR KendallSquare REIT, part of the ESR Group, has completed its first disposal with the sale of a logistics centre at 452 Hoeok-ri, Majang-myeon in South Korea for KRW81bn (€59m).
ESR KendallSquare, which acquired Icheon LP 1 for KRW66bn during its initial public offering in December 2020, said the disposal has garnered a total investment return of 30% over a period of 2.5 years.
“This achievement effectively allays any fears surrounding the depreciation of logistics real estate assets and provides clear evidence of the overall high value inherent in the REIT’s portfolio,” it said.
Sanghwoi Bae, CEO of ESR KendallSquare REIT, said the sale will enable the firm to take advantage of “increasingly more attractive pipeline opportunities in South Korea and to build on the strength of our platform to deliver long-term sustainable growth”.
ESR KendallSquare REIT is the only listed Korean real estate investment trust and counts the National Pension Service (NPS) as a significant investor. NSP recently lifted its stake in the vehicle to more than 5%.
At present, ESR Kendall Square REIT manages a portfolio of 12 modern, institutional-grade logistics assets with a total asset value of approximately US$1.3bn (€1.2bn).
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