[Asia Economy Reporter Lim Jeong-su] KTB Asset Management is forming a private equity fund to acquire a Fedex logistics warehouse near Milan, Italy. Despite COVID-19, domestic asset management companies continue to acquire prime overseas logistics warehouses.
According to the investment banking (IB) industry on the 9th, KTB Asset Management is establishing a private equity fund called 'KTB Global CRE Specialized Investment Private Equity Trust No. 47' targeting institutional investors to acquire the Fedex logistics warehouse in Milan, Italy. The deposit will be paid soon, followed by sequential payments of the acquisition price. The price of the logistics warehouse is known to be between 80 billion and 100 billion KRW.
The logistics warehouse is currently under construction in San Pietro Mosezzo, Piedmont, in northwestern Italy, and is scheduled for completion in April next year. This area is adjacent to Milan, the economic capital of Italy located in Lombardy. It is also close to major European countries such as France and Switzerland.
Upon completion, Fedex will use it as a northern Italy hub logistics warehouse. TNT Express, a 100% subsidiary of Fedex, plans to lease it long-term (master lease) for 15 years. Fedex has agreed to fully guarantee the stability of the rent payments that TNT Express must make.
Despite the difficulty of on-site inspections due to COVID-19, domestic asset management companies continue to shop for European logistics centers.
Earlier, Maston Asset Management signed a pre-purchase contract to acquire six logistics centers located in Paris, France, and Toulouse, one of the four major cities near the Spanish border, all at once. Global companies including Fedex, Amazon, and Mondial Relay lease these logistics facilities long-term.
Daishin Asset Management purchased a logistics center located in Słubice, Poland, in May. Amazon plans to lease it long-term for 20 years. It is a fulfillment center capable of storage, packaging, and delivery, located near the German border, serving logistics demand for Germany, the Czech Republic, and Western Europe.
An IB industry official said, "The demand for prime overseas alternative investments from domestic institutional investors such as pension funds and mutual aid associations continues to increase," adding, "After COVID-19, investment demand for hotels and offices has decreased, while investment in logistics facilities is on the rise."
The official added, "Especially logistics facilities leased long-term for over 10 years by global logistics companies such as Amazon and Fedex have high profitability relative to risk, attracting investors' popularity."
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