KB Securities sells UK Sainsbury logistics facility... 36% yield

Invested with LB Asset Management in 2017... Sold after 3 years

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] KB Securities is expected to achieve a 36% return by selling the UK logistics facility it invested in in 2017.

KB Securities announced on the 27th that it successfully sold the UK logistics facility it invested in together with LB Asset Management in 2017.

This logistics facility had a long-term triple net lease contract with the famous UK supermarket 'Sainsbury's' until 2038. It is located within the so-called 'Golden Triangle,' a key logistics area in the UK. Previously, KB Securities purchased the facility through LB UK Specialized Investment Private Real Estate Trust No. 3 to 5 in 2017, together with LB Asset Management.

With this sale, the fund is expected to achieve a capital gain return of approximately 36% (before fees and taxes). During the operation period, it also paid an average annual dividend of about 7% (pre-tax).

KB Securities attributed the success to thorough local due diligence and market analysis conducted with LB Asset Management from the stage of acquiring beneficiary certificates. It was also explained that appointing lawyer Yoon Beom-ryeol, a former compliance officer, as head of the Alternative Finance Division this year was for meticulous due diligence. Director Yoon is an alternative investment expert who has served as head of the Global Business Division and Overseas Alternative Investment Division for over four years in the field.

Additionally, by holding part of the fund to maturity in the Investment Banking (IB) division, KB Securities emphasized that careful management and recovery of assets until the fund's maturity greatly contributed to increasing investor trust.

Meanwhile, KB Securities is focusing on managing and recovering overseas real estate. Following the sale of the German DHL logistics center portfolio in 2019 to recover investment funds, it also sold the UK Waterside House building, the WeWork headquarters in New York, USA, and the Patriot Park office in Washington, USA last year.

A KB Securities official said, "As stock prices have risen significantly recently, there is an increasing need for alternative investment products that investors can trust. We are preparing investment alternatives through thorough investment analysis and meticulous due diligence," adding, "Under the goal of supplying only products that can be trusted for investment, we are mobilizing the capabilities of both the sales and review departments during the beneficiary certificate acquisition process."

This content was produced with the assistance of AI translation services.