Mirae Asset "Invest in US Amazon Logistics Centers"

Public Offering Fund Launching to Invest in Three Amazon Logistics Centers

[Asia Economy Reporter Minwoo Lee] A public offering fund investing in Amazon logistics centers in the United States is being launched.

Mirae Asset Global Investments announced on the 21st that it is recruiting for the 'Mirae Asset MAPS US Real Estate Public Offering Fund No.16,' which invests in three Amazon logistics centers located in the central and southern United States.

This product invests in three logistics centers located in Indiana, Ohio, and North Carolina, USA, where Amazon, the world's largest e-commerce company, uses the entire leased area. Amazon was involved from site selection to design, and Scanell, a global logistics facility developer, developed the centers, all of which were completed this year. These are 'last-mile' logistics facilities, the final delivery segment directly to the end consumer, considered a core part of Amazon's logistics system to shorten delivery times.

Amazon has signed a long-term lease contract for 12 years, with a maximum extension period totaling 27 years, which is expected to secure stable rental income. Rent increases annually at a fixed rate. It is a 'triple net' structure where the tenant bears property taxes, insurance, and maintenance fees.

The fund's subscription size is 96.5 billion KRW. Subscriptions are available through KB Kookmin Bank (sales from the 26th to 27th) and Mirae Asset Daewoo branches until the 28th. The maturity period is 5 years and 6 months from the subscription date. It is a closed-end structure that does not allow early redemption. To provide liquidity and marketability to investors, it is scheduled to be listed on the Korea Exchange within 90 days after establishment.

Since no currency hedging is conducted, returns are linked to the US dollar. Gains or losses may occur upon the sale of the real estate. Distributions are expected to be paid every six months starting from the end of April 2021.

Choi Chang-hoon, head of the real estate division at Mirae Asset Global Investments, said, "Through this public real estate fund, general investors can easily invest in logistics centers with high-quality tenants on long-term leases and expected growth," adding, "Mirae Asset will continue to discover global quality assets and provide asset allocation solutions to investors."