Mapletree scores third property in Korea

The acquisition of Iljuk Gyeonggo Centre from Iljuk Gyeonggo Logistics was for a consideration of $25.5 million.

According to OCBC Investment Research's analyst, Ong Kian Lin, Gyeonggi-do is an ideal location for warehouses and distribution centres due to its accessibility via major highways and close proximity to the Iljuk Expressway Interchange.

This provides connectivity to other parts of South Korea, including the Seoul Metropolitan Area as well as several industrial developments in the adjacent Pangyo and Seongnam areas.

The property comprises two blocks of 3-storey dry warehouses with a total GFA of about 23,400 sqm, and provides an initial NPI yield of 9.3%. It is leased to Seol Logistics Co. Ltd under a master head lease for 5 years with built-in rental escalation of 3.5% per annum.