IGIS and QuadReal launch US $1 billion partnership to develop grade-a logistics portfolio in South Korea
Investment In High Conviction Geography Launches Programmatic Joint Venture
IGIS Asia Investment Management, the pan-Asian focussed fund management arm of IGIS Asset Management, Korea’s largest real estate asset manager, and global real estate company, QuadReal Property Group, have formed a programmatic joint venture to develop logistics assets in Korea. The partners will capitalise on the highly favorable structural drivers underpinning demand for logistics space in South Korea, including accelerating e-commerce penetration and an acute shortage of Grade-A tenant accommodation.
QuadReal will provide the majority of capital with the IGIS team responsible for originating, developing and operating the assets, leveraging its vertically integrated platform which has recently delivered c. 322,000 sqm of logistics space into the market. The QuadReal team brings its own extensive experience in the industrial sector, owning and managing more than 120 million square feet (11 million square metres) of single-and-multi-tenant industrial buildings across the globe.
Korea’s e-commerce penetration rate is second only to China and is forecast to accelerate in the coming years. This, combined with a modern stock of logistics space per capita well below other developed countries, compels both parties to pursue opportunities in this region with deep conviction. New properties will be designed and developed to appeal to e-commerce, 3PL, retail and cold storage companies catering to shifting consumer patterns as Korean retail continues to move online.
Peter Kim, Managing Director, Asia, at QuadReal, commented: “Global logistics market fundamentals remain compelling, driven by supply chain reconfiguration requirements and the growth of omni-channel retail. In South Korea we continue to witness the interrelation between e-commerce led occupational demand and a shortage of Grade-A space in proximity to dominant urban centres, which is forecast to underpin rental and capital growth.”
Steve Oh, CEO at IGIS Asia Investment Management, commented: “The South Korean logistics market is continuing to evolve which will create some interesting investment opportunities delivering attractive risk-adjusted returns. We are seeing not only increasing demand for high-quality logistics assets in emerging sub-markets outside of Greater Seoul, such as the Southern provinces, but also from traditional and emerging manufacturing businesses seeking to enhance the cost-effectiveness of their supply chains.”
Founded in 2011, IGIS Asset Management (“IGIS”) is a privately owned vertically integrated real estate investment management firm and Korea’s largest real estate asset manager with assets under management totalling approximately US$45.6 billion as of Dec 2021. The company has over 300 professionals with presence in 5 cities, 5 countries and deep expertise to invest across different strategies from core to opportunistic in multiple sectors across various markets.
About IGIS Asia Investment Management
IGIS Asia Investment Management (“IGIS AIM”) is an overseas subsidiary of IGIS established in 2020 in Singapore. IGIS AIM’s focus is to expand its presence within Asia-Pacific through joint venture partnerships with operators, asset managers and local partners. The firm will invest thematically in high-quality assets across the Asia-Pacific markets to benefit from the growth potential driven by global economic and demographic trends.
About QuadReal Property Group
QuadReal Property Group is a global real estate investment, operating and development company headquartered in Vancouver, British Columbia. Its assets under management total $67.1 billion. From its foundation in Canada as a full-service real estate operating company, QuadReal has evolved its capabilities to invest in public and private debt and equity markets. QuadReal invests directly via programmatic partnerships and through operating companies in which it holds an ownership interest.
QuadReal seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves. Now and for generations to come.
QuadReal: Excellence lives here.