Kiwoom Asset Management Completes Sale of US Logistics Real Estate Fund

Early Liquidation of Kiwoom Heroes US Logistics Portfolio Fund

[Asia Economy Reporter Hwang Yoon-joo] Kiwoom Asset Management has successfully completed the sale of assets included in a real estate fund that invests indirectly in securities linked to logistics centers located in the central and eastern United States, and will proceed with early liquidation.

Kiwoom Asset Management announced on the 12th that it has completed the sale of assets included in the Kiwoom Heroes US Logistics Portfolio Real Estate Investment Trust No. 1 [Indirect Investment Type] and will liquidate the fund early.

This fund invests in securities of an investee fund that holds a portfolio of six logistics centers located in the central and eastern United States, and distributes dividends received from the investee fund to investors.

The investee fund completed the sale of related assets with the buyer on July 29, 2022, local US time. The sale price was approximately $570 million, with capital gains nearing $160 million. The assets were sold with a profit margin exceeding 35%.

In May 2019, Kiwoom Asset Management raised about KRW 76 billion through the distributor Korea Investment & Securities as part of the purchase price for the logistics center portfolio of the investee fund and established the Kiwoom Heroes US Logistics Portfolio public offering fund. At that time, the fund's maturity was set at 7 years, with a target sale point approximately 5 years later.

For public investors, the successful asset sale just three years after subscription resulted in a significant level of additional returns. The principal and major capital gains from the asset sale are scheduled to be paid to investors in two installments on September 8, 2022, and in the second half of 2023.

Lee Seung-eon, team leader at Kiwoom Asset Management who managed the fund, stated, "Fund subscribers received approximately 6-7% annual dividend payments six times over the past three years, and the cumulative return reached about 40% after the dividend payment in September 2022."

Kiwoom Asset Management cited the recent asset sale by the investee fund as a successful case achieved under difficult circumstances, amid ongoing concerns about a real estate market downturn due to the recent global interest rate hike trend.

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