Samsung Sec buys Amazon logistics center in Czech for $160 mn: report

Samsung Securities Co. Ltd. has bought Amazon’s only logistics center in Czech Republic for 186 billion won ($160 million), in its fourth acquisition of the retail giant’s distribution centers in Europe in three years which amounted to 770 billion won, according to a local media report.

The South Korean brokerage firm has completed the purchase from AEW, a US real estate investment company, the JoongAng Daily reported last week, citing financial industry sources.

The logistics center is under a long-term lease with Amazon until 2030 and located near Prague Airport, covering Germany, Austria and Czech Republic.

Samsung will put up 80 billion won for the transaction and borrow the remainder at an annual rate of about 1% from local financial institutions.

It will sell down the property through a five-year vehicle for a target return of 9% per annum, similar to the expected yield it pitched for Amazon’s logistics center in Germany which it bought for 260 billion won last month.

Britain’s Roebuck Asset Management and Seoul-based Kendall Square Asset Management will manage the asset.

Between 2016 and 2018, Samsung Securities bought Amazon’s logistics warehouses in Leicester, England for 210 billion won and in Hannover, Germany for 110 billion won, respectively.

Since 2016, South Korean financial institutions, including Mirae Asset Daewoo Co. Ltd., and IGIS Asset Management Co. Ltd., had scooped up Amazon’s logistics centers in Europe for a total of 2 trillion won.