April 20, 2024

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Local brokerage firm KB Securities has acquired a distribution warehouse operated by US ecommerce giant Amazon in Edinburgh, Scotland for some 100 billion won ($84 million), according to news reports on August 18.

In partnership with local investment firm LB Asset Management, the subsidiary of KB Financial Group created a fund for the acquisition earlier this year. 

KB acquired the facility by investing some 42 billion won in securities pegged to the facility and is expected to sell down the half of the securities to domestic investors and financial institutions.

The US ecommerce giant will lease the space for the next 11 years with the anticipated lease profits reaching 7-8 percent annually.

Since the outbreak of the novel strain of coronavirus, many real estate projects run by Korean investment firms have been halted. Investment for distribution facilities, however, have been garnering attention in the market thanks to the rise of online commerce businesses during the ongoing coronavirus crisis.

Local brokerage Korea Investment & Securities, along with its partner Tiger Alternative Investors, recently took over a distribution center previously owned by Home Depot for 300 billion won.

(wone0102@heraldcorp.com)

By Kim Young-won