DHG Asset Management recently announced on the 3rd that it has arranged project financing (PF) loans for a logistics center development project located in Hwaseong.
Amid difficulties in attracting investment for logistics centers due to consecutive court management cases among construction companies and a downturn in the construction market, DHG Asset Management successfully closed the deal, earning recognition for its expertise in leading high-quality deals. The funding was secured through project financing (PF).
According to the financial investment industry in January, DHG Asset Management arranged PF loans worth 75 billion KRW for a logistics center development project utilized as a hub by Hansol Paper. The project is being developed by K-Logis Hwaseong in Deokuri, Paltan-myeon, Hwaseong-si, consisting of a land area of 29,678㎡, a total floor area of 49,126㎡, with one basement floor and four above-ground floors.
DHG Asset Management is a private equity fund management company launched in July 2023, funded by Duhamji Development. Duhamji Development is an investment company focusing on real estate investments, utilizing cash secured through sales such as the Sheraton Seoul Palace Gangnam Hotel.
Hansol Paper, as of last year, recorded sales of 2.2158 trillion KRW, making it the largest paper manufacturer in Korea. Its credit rating by Korea Ratings is A0, marking it as a high-quality tenant.
Yojin Construction Industry, responsible for the guaranteed completion, ranked 80th in construction capability evaluation as of last year.
The Hansol Paper hub logistics center is considered a preferred location for large tenants due to its excellent accessibility to the metropolitan area via Joam IC and Balan IC, providing easy access to Pyeongtaek-Siheung Expressway and Seohaean Expressway. Hansol Paper decided to utilize the Hwaseong logistics center as a major hub through logistics and distribution structure improvement consulting.
Regarding the nearby Wolmun-ri logistics center constructed by Yojin Construction Industry, the site’s location was validated last year as the collateral loan was fully completed following the pre-lease by Lotte Global Logistics.
Most financial institutions have stopped reviewing logistics center development projects due to difficulties such as delinquencies or loss of benefit of term (EOD) at project sites. However, due to many attractive factors such as securing a highly creditworthy operator and 100% single primary lease with a top-tier shipper, DHG Asset Management succeeded in raising funds.
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