LaSalle Investment Management has sold a logistics asset in South Korea’s capital for KRW125bn (€87m) and also exited from a loan facility to a Korean developer.
The logistic asset in Seoul was held in LaSalle Asia Opportunity Fund VI (LAO VI), while the property was developed and owned by LaSalle Asia Opportunity Fund (LAO V).
LaSalle made the loan during market dislocations in early 2023 when credit spreads widened, presenting this non-distressed lending opportunity, said the manager.
The facility, secured by a Grade A location land site, was to a borrower with a track record of developing, leasing, and selling similar developments in Seoul where the office market continued to be resilient.
Steve Hyung Kim, senior managing director and head of Korea for LaSalle, said the firm was “actively” responding to recapitalisation situations in selective projects to invest in preferred equity or secured junior debt.
“These types of investments are cyclically driven and offer a balance of both downside protection and attractive risk-adjusted returns especially in the current environment. Aligned with this strategy, we are pleased to exit this investment with opportunistic returns for our limited partners in LAO VI.”
In the second deal, LAO V completed the sale of Logiport Osan, a four-storey mixed-use modern warehouse, that was pre-leased prior to completion in December 2022. Logiport Osan was executed by LaSalle Korea in-house from land acquisition, to leasing, to managing the disposition.
LaSalle operates in Korea as a licensed asset management company with over KRW1.67trn assets under management on behalf of both domestic and international clients.
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