[Asia Economy Reporter Lim Jeong-su] A project financing (PF) loan worth 227 billion KRW has been secured for the development of the S&K Complex Logistics Center in Seoknam-dong, Seo-gu, Incheon. The Seoknam Logistics Center is considered one of the major logistics centers in the Seoul and Gyeonggi areas, alongside the Coupang logistics center.
According to the investment banking (IB) industry on the 7th, special purpose companies (SPCs) Seoknam Logistics First and Seoknam Logistics Second, established for the development project of the Incheon Seoknam Logistics Center, will receive a credit line loan of 227 billion KRW from the lending consortium on the 8th. The loan was executed in tranches according to repayment and collateral priority: senior tranche of 150 billion KRW, mezzanine tranche of 47 billion KRW, and junior tranche of 30 billion KRW.
The lending consortium reportedly includes Ewha Asset Management, an asset management company affiliated with the Ewha Group. Ewha Asset Management’s real estate private equity fund, ‘Ewha Specialized Investment Private Real Estate Trust No. 44,’ will execute part of the loan and enter into a pre-purchase agreement for the logistics center. Once the logistics center is completed, the fund plans to directly acquire and operate it.
The procured funds will be used to construct a logistics center spanning from basement level 1 to the 10th floor above ground, with a total floor area of 44,943 pyeong, located at 223-41 Seoknam-dong, Seo-gu, Incheon. This project is being carried out through a managed land trust method by Asia Trust, with Daelim Industrial responsible for construction. Daelim Industrial bears the obligation of responsible completion, aiming to finish construction and obtain usage approval within 27 months.
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