Tiger Alternative near closing $247 mn Home Depot logistics center deal: report

Tiger Alternative Investors Co. Ltd. is in the final stages of negotiations to acquire a new distribution center in Texas for $247 million, now leased to The Home Depot, according to a local media report, as the Seoul-based investment firm is expanding its logistics portfolio to capitalize on the e-commerce boom.

The property in Dallas consists of two buildings, which the largest US construction materials company The Home Depot has agreed to lease for 20 years, with an extension option for another 20 years, The Bell reported on August 10.

One of the buildings was constructed in August last year, with the other set to be completed later this month.

Tiger Alternative funded the acquisition through a vehicle that raised 100 billion won ($84 million) for a target internal rate of return of between 6.5% and 7%. It will finalize the payment within the week.

For the acquisition, it has joined hands with the US real estate investment trust company Vereit Inc. and Ocean West Capital Partners.

The report came after another Korean newspaper the Herald Economy said last month that Vereit would take charge of 20% of the equity financing for the transaction. Korea Investment & Securities Co. Ltd. will fund the remaining 80% with a plan to sell it down to domestic institutional investors.

Last year, Korea Investment teamed up with Tiger Alternative and US investment company Ocean West Capital to buy five US student housing properties for $250 million, which marked the first direct investment by a South Korean firm in the asset class.