Tiger Alternative, Ocean West sell 7 warehouses in US for $1 bn

A consortium led by South Korea’s Tiger Alternative Investors Co. and Los Angeles-based real estate firm Ocean West Capital Partners sold seven logistics centers in the US for about $1 billion earlier in September.

The consortium purchased the warehouses totaling 650,321 square meters in states in eastern and central US between 2019 and 2020. The properties are rented by Amazon, Nestle, The Home Depot, FedEx and other global companies. 

Tiger Alternative acquired the assets during COVID-19 to meet the surging demand for e-commerce and has sold the properties amid interest rate hikes, a source from the Korean alternative investment firm said.

Tiger Alternative was spun off from Korea’s Tiger Asset Management in December 2018. The alternative investment firm manages 7.17 trillion won in assets as of end-September.

The alternative asset manager allocates 51% of its AUM, some 3.68 trillion won, to real estate. Some 23% of the assets are in funds of funds, followed by 15% in global acquisition finance, 7% in structured funds and infrastructure, and 4% in blind pool funds.

Tiger Alternative is expanding global multifamily and student housing assets for stable cash flow and to hedge interest rate risk, the source said.

Tiger Alternative and Korea’s NH Investment & Securities Co. jointly bought a multifamily housing project in California for $220 million in September 2021. The Monterey, a 442-unit luxury property located in the Inland Empire community of Corona, California, is expected to deliver a 7.0-7.5% return.     

In 2019, Tiger Alternative teamed up with Korea Investment & Securities and Ocean West Capital to acquire five US student housing assets for $250 million. It was the first direct investment by a Korean firm in the asset class. 

Write to Ji-Hye Min at spop@hankyung.com
Jihyun Kim edited this article.