KORAMCO LIFE INFRA REIT sheds its image as a gas station REIT... selected as preferred bidder for Anyang logistics center [fnMarketWatch]

[Financial News] KORAMCO LIFE INFRA REIT, once known as a leading gas station REIT, is set to add an urban logistics center in the Capital Region to its portfolio. Without a separate rights offering, it is expanding into high-quality assets and rapidly reshaping its portfolio from gas stations toward logistics, hotels and mobility. The move is also drawing attention because it secures a core asset with long-term tenants at a time when new logistics supply in the Capital Region is falling sharply.
According to the investment banking industry on the 27th, KORAMCO LIFE INFRA REIT and a consortium led by Samsung Securities Co., Ltd. were recently selected as the preferred bidder for the sale of the Anyang Logistics Center in Anyang, Gyeonggi Province. The parties are now conducting due diligence and reviewing the investment structure, and they aim to close the deal in the fourth quarter of this year after obtaining approval from the Ministry of Land, Infrastructure and Transport and securing financing.
In particular, the investment is drawing attention because it will use existing financial capacity and funding structures without a separate rights offering. This allows the REIT to improve portfolio returns while avoiding dilution for existing shareholders during the acquisition of a new asset.
Completed in 2023, the Anyang Logistics Center is a temperature-controlled logistics facility with a total floor area of about 95,475 square meters. It is close to the Gangnam area in southern Seoul, and its current occupancy rate stands at 99.3%, with a weighted average lease expiry of 6.71 years. Its tenants include Coupang, Nongshim, GeoYoung and Yongma Logis.
The purchase price is said to be in the mid-9 million won range per 3.3 square meters of floor area. Given its access to Gangnam, its new-building quality and a tenant structure that is effectively fully leased, the asset is seen as competitively priced among core logistics properties in the Capital Region.
Market conditions have also become more favorable recently. According to Cushman & Wakefield, new logistics center supply in the Capital Region plunged 73% last year from a year earlier. As project financing markets remain weak and permitting rules continue to tighten, the shortage of new supply is likely to persist.
However, not all logistics centers are benefiting equally. Unlike outlying assets that still suffer from the aftermath of oversupply, investment demand is increasingly concentrating on core assets with good access to Seoul and strong tenants. The Central Region, where the Anyang Logistics Center is located, has seen no new supply since 2023, and additional permits are reportedly limited.
The deal is also expected to accelerate KORAMCO LIFE INFRA REIT's strategy to move away from gas stations. The REIT is reducing the share of gas stations, which accounted for more than 90% of assets at the time of its listing, while expanding into logistics, hotels, offices and mobility.
Earlier in May, it acquired 11 Hyundai Motor Company sales locations through an investment in a Hyundai Motor securitized REIT, and it is also developing a small and mid-sized hotel in Jae-dong, Seoul. As a result of this asset reshuffling, the portfolio's NOI yield, or net operating income return relative to asset value, rose from 4.0% to 4.9%. The logistics segment's NOI yield stands at 5.4%, above the overall average.
An official from the real estate investment banking industry said, "The Capital Region logistics market is entering a phase in which asset value is determined less by supply volume and more by location, tenants and long-term cash flow." The official added, "Core urban logistics facilities that are difficult to add may become even more valuable."
An official from KORAMCO LIFE INFRA REIT said, "The Anyang Logistics Center is an asset that combines access to Gangnam, a high occupancy rate and long-term leases." The official added, "We will pursue the investment without a rights offering to minimize dilution for shareholders while securing stable cash flow."

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