[Asia Economy Reporter Lim Jeong-su] Logistics Valley Seoul Co., Ltd., an affiliate of MQ Group, has raised 140 billion KRW in funds to repay borrowings for the Gimpo Gochon logistics center and for operating expenses.
According to the investment banking (IB) industry on the 3rd, Logistics Valley Seoul, the operator of the Gimpo Gochon logistics center, raised 140 billion KRW in funds under the management of BNK Investment & Securities. The loan was structured as a 120 billion KRW senior lump-sum loan and a 20 billion KRW revolving credit facility. The loan maturity is three years with a lump-sum repayment condition at maturity.
Logistics Valley Seoul operates the 'Gimpo Logistics Valley Complex Logistics Facility' located at 57 Ara Yuk-ro, Gochon-eup, Gimpo-si, Gyeonggi-do. This logistics facility, well known as the Gimpo Airport Center and covering approximately 7,800 pyeong, houses prominent distribution companies such as GS, CJ, and Market Kurly, which use cold chain logistics centers.
Logistics Valley Seoul is reported to plan to use the funds raised this time to repay existing borrowings and use the remainder for operating expenses. As of the end of last year, Logistics Valley Seoul's borrowings amounted to approximately 180 billion KRW. When borrowing, land and facilities were provided as collateral to DB Insurance, Shinhan Capital, Kiwoom Yes Savings Bank, OK Capital, and Eugene Savings Bank.
Logistics Valley Seoul was established through a spin-off from MQ Logistics, a logistics center development and operation company, and MQB I&D Co., Ltd., an affiliate of MQ Group, holds 100% of its shares. MQ Group is led by CEO Kim I-geun, with MQ Networks, which holds 100% of the shares, serving as the group's founding company and holding company. It is a leading domestic third-party logistics company that has distribution and sales contracts with major domestic and international global companies such as Yuhan-Kimberly, Aekyung, Amorepacific, LG Household & Health Care, P&G, Kellogg's, Downy, and Gillette.
MQ Networks holds subsidiaries including Logistics Valley Seoul, which operates logistics centers, as well as MQ Development Holdings, MQB I&D, MQ Logistics, MQ Retail, and Nanum HNC, which play roles in real estate development and implementation.
In addition to the Gimpo Gochon center, the group also develops and operates the Namyangju Hwado logistics center, leased by Coupang and Hanjin, and the Yongin Baegam logistics center, housing CJ Logistics, Acushnet, and Woongjin Foods. The Baegam logistics center, covering 13,000 pyeong, is the largest logistics facility operated by MQ Group.
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