Shinyoung Securities Invests 120 Billion KRW in US Amazon Logistics Center

Used as a 'Last Mile' Logistics Center in Pennsylvania
Sprat Asset Management Facilitates Investment... Also Manages Local Assets

Exterior view of the Amazon last-mile logistics center located in Philadelphia, Pennsylvania, USA, invested by Shin Young Securities (Photo by Shin Young Securities)

[Asia Economy Reporter Minwoo Lee] Shin Young Securities is investing 120 billion KRW in the logistics center of Amazon, the world's largest e-commerce company.

Shin Young Securities announced on the 4th that it invested $100 million in the Amazon logistics center located in Philadelphia, Pennsylvania, USA, together with Spratt Korea Asset Management (hereinafter Spratt Asset Management).

Completed in the second half of last year with a total area of 16,000 square meters, this logistics center is being used as a "last-mile" logistics center for same-day delivery service (Amazon Prime service) in the region. A last-mile logistics center is a facility that finally collects and ships the products ordered by customers and is classified as a key center responsible for the final delivery of products to customers. Amazon plans to lease this last-mile logistics center for 12 years.

Shin Young Securities expects the investment value in last-mile logistics centers to increase further in the future. The demand from large e-commerce companies is very high, to the extent that major offline retailers such as Walmart are converting many of their offline stores into last-mile logistics centers. Additionally, supply is limited due to expanded regulatory approvals by relevant authorities.

The local assets are operated and managed by Spratt Asset Management and Lincoln Property Company. Spratt Asset Management is a specialized private equity fund management company established in Korea by Sprott, a Canadian resource-focused asset management firm, and Lincoln Property Company is a real estate development and operation company in the United States. A representative from Spratt Asset Management said, "This investment is part of expanding investments in various infrastructure assets that are gaining attention in the post-COVID era," adding, "Considering stable rental income as well as demand for U.S. logistics infrastructure, profitability can be secured through future sales."

In the future, Shin Young Securities plans to resell (sell-down) this logistics center to domestic institutional investors. A Shin Young Securities official stated, "We established an alternative investment division last year and will expand promising overseas investments based on this investment."

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