[THE INVESTOR] Korea’s third-largest realty trust KORAMCO REITs & Trust has acquired a logistics center in Germany for 86 million euros (US$97.91 million) with French investor L’Etoile Properties, according to industry sources on Nov. 29.
The logistics center which was established in May spans around 99,000 square meters and is located in Garbsen, near Hanover. Amazon recently signed a 15-year contract to use the logistics center.
According to sources, KORAMCO and L’Etoile Properties financed part of the funds for acquisition by taking a loan from Deutsche Pfandbriefbank. The Korean company plans to sell shares of the logistics center to local investors here.
KORAMCO has been scouting for investment opportunities in Europe to diversify its portfolio, previously focused on the US market. Before the latest deal, it acquired IZD Tower in Vienna, Austria, for 270 million euros in November.
Established in 2001, KORAMCO posted revenue of 124 billion won (US$111 million) and 66.1 billion won operating profit last year. Currently, LF Group owns a majority stake after it acquired 50.74 percent stake for 189.8 billion won to diversify its business.
By Song Seung-hyun (firstname.lastname@example.org)