ING Real Estate acquires two hypermarkets in Korea
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ING Real Estate today announced the acquisition of two hypermarkets in South Korea for the ING Real Estate Asia Retail Fund (the Fund). One hypermarket is located in a town called Jochiwon and the other in Cheon-An city, about 110km and 85km south of Seoul respectively.
With this acquisition, the Fund has now invested 95% of its initial target commitment of USD 600 million with a portfolio of more than USD 1.2 billion.
Commenting on the transaction, Richard Price, CEO of ING Real Estate Investment Management Asia, stated: “We are very pleased with the acquisitions which demonstrate our strong capabilities in the Korean market. We have established a strong team in Korea and will continue to look for opportunities offering good investment potential there."
Besides these newly-acquired hypermarkets, the Fund holds 35% in Suria KLCC Retail Centre in Malaysia, The Mall in South Korea, Morioka Minami and North Port Mall in Japan.
The total investment value for both hypermarkets is approximately USD 124 million. The Fund will hold 80% in both properties while a Korean life insurance company will own 20%.
ING Real Estate has taken possession of the Jochiwon hypermarket which was completed in April 2008. The acquisition of the Cheon-An hypermarket will close upon completion of the property, which is expected to take place around September 2008.