Samsung Sec buys Amazon warehouse in Germany for $215 mn: report

Samsung Securities Co. Ltd. has recently closed the acquisition of Amazon’s new logistics center in Germany for 260 billion won ($215 million), in an investment expected to generate annual returns of nearly 9% for five years, according to a local newspaper report.

For the transaction, Samsung stumped up about 100 billion won and borrowed the remainder in Germany, the Maeil Business Newspaper said on Tuesday, citing financial industry sources.

Amazon uses the 130,000-square-meter facility under a long-term lease.

Completed in July this year, the property is located in the western city of Moenchengladbach near Dusseldorf.

The South Korean brokerage firm is selling it down to domestic institutional investors for target returns of between 8.5% and 9% per annum in a five-year investment vehicle.

Shinhan Alternative Investment Management Inc. launched the domestic vehicle for the resale, with French asset manager La Francaise managing the investment.

The expected return is higher than the projected 5% for the Crystal Park building in west of Paris which Samsung Securities bought for 691 million euros earlier this year.

A currency hedging premium and negative interest rates in Germany are expected to bolster returns from German assets.

Previously, Samsung Securities acquired two Amazon-leased logistics facilities in Europe: one in Hannover, Germany for 110 billion won in 2018; and the other in Leicester, England for 210 billion won in 2016.

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