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Alternative investments

Mastern, Kiwoom close $200 mn France logistics deal

Tenants of the six warehouses include Amazon and FedEx

Jun 14, 2021 (Gmt+09:00)

(Getty Images Bank)
(Getty Images Bank)
South Korea's Mastern Investment Management Co. and Kiwoom Securities Co. have completed the acquisition of six last-mile distribution centers in France for a combined 250 billion won ($224 million), according to a local newspaper report.

For the transaction, Kiwoom raised 120 billion won in acquisition financing, comprised of the equity tranche and secured loans, while extending credit for an undisclosed amount, the Financial News reported on June 12.

Kiwoom will float short-term notes backed by both the equity portion and loans.

Earlier this year, Mastern Investment and Kiwoom sent employees to France to conduct due diligence on the facilities, according to the report.

The six last-mile warehouses are located in Paris and Toulouse, close to the Spanish border, to offer very fast delivery services. They are already under long-term lease agreements with e-commerce companies and logistics service providers, including Amazon and FedEx. Two of them are now operational, with the four others under construction.

The expected return from the transaction is projected to be as much as 7%, considering foreign exchange gains and the interest rate differential between South Korea and Europe. 

Yeonhee Kim edited this article.

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