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Alternative investments

Hana to reap over 10% IRR on $200 mn Poland logistics deals

By Nov 26, 2020 (Gmt+09:00)

Hana to reap over 10% IRR on 0 mn Poland logistics deals
South Korea’s Hana Alternative Asset Management Co. has decided to exit from two Amazon-leased logistics centers in Poland for around 240 billion won ($217 million), reaping over 10% in an average internal rate of return, according to sources with knowledge of the matter on Nov. 26.

Hana Alternative has recently chosen multiple foreign investors as buyers of the two Amazon fulfillment centers in Poland, one in Wroclaw and the other in Poznan. The investors were not identified.

The exit, managed by CBRE, is one year ahead of the funds’ expiration. It was first reported by the Maeil Business Newspaper and confirmed by the sources.

Hana acquired the two facilities in December 2015 and April 2016, respectively, for a combined 180 billion won.

Their expected capital gains of over $50 million and interim dividends will translate into over 10% IRR.

The logistics center based in Poznan was jointly purchased by NH Investment & Securities Co. for 100 billion won ($85 million), in which the Construction Workers Mutual Aid Association (CWMA), a $4 billion South Korean retirement fund, invested 22 billion won.

Logistics facilities are among CWMA’s top picks for alternative investment with an aim to secure stable income, its Chief Investment Officer Wihwan Lee told The Korea Economic Daily in an interview.

Amazon-leased logistics centers, in particular, have been at the top of Korean investors' buying lists, with the coronavirus pandemic driving e-commerce growth even higher.

In August, Seoul-based IGIS Asset Management Co. acquired a pre-completed logistics center leased to Amazon in Delaware, US for approximately 200 billion won, after it purchased three Amazon logistics facilities in Paris, Barcelona and Bristol for a combined 595 billion won.

In September, Mirae Asset Global Investments Co. snapped up three Amazon-occupied distribution centers in Indiana, Ohio and North Carolina, US. To finance the purchase, Mirae launched a domestic retail fund to raise 96.5 billion won last month.

Write to Seon-Pyo Hong at rickey@hankyung.com

Yeonhee Kim edited this article.

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