US properties investment management firm Nuveen Real Estate has bought the entire stake in a brand-new logistics facility in South Korea designed to meet the rising demand for same-day, last-mile delivery in Seoul metropolitan area, it said on Aug. 8.

The acquisition marks Nuveen’s first deal in Korea, in collaboration with local entity Sang Investment.

Nuveen declined to disclose the price for the acquisition. 

Located in Namyangju City, some 20 kilometer northeast of the Seoul’s central business district, the property with 24,400 square-meter floor area will be fully occupied by e-commerce unicorn Coupang and convenience store operator Emart 24. Its construction was complete in June 2019.

The facility houses dry storage combined with designated cold storage. It will serve a fifth of the whole population of Seoul metropolitan area by targeting its northeastern region.

“Korea ranks as one of the most connected and technology-driven markets in the Asia-Pacific region, with an online penetration rate of 90 percent. However, in contrast less than 5 percent of its logistics stock is considered modern by global standards,” Louise Kavanagh, managing director Asia-Pacific at Nuveen, said in a statement.

“We anticipate that the rapid expansion of e-commerce and associated third-party logistics demand in the Asia-Pacific region, and particularly Korea, will underpin structural resilience in the sector.”

Nuveen Real Estate, formerly known as TH Real Estate, has $129 billion of assets under management as of March.

By Son Ji-hyoung (consnow@heraldcorp.com)