National Pension Service Earns 240 Billion KRW from Sale of Australian Logistics Center

The National Pension Service successfully sold its stake in an Australian logistics center, earning approximately 240 billion KRW in profits from overseas alternative investments.

On the 7th, the National Pension Service announced that it sold a 50% stake in a portfolio consisting of 20 Australian logistics center assets to the Australian teachers' pension fund UniSuper for 560 million AUD (approximately 480 billion KRW).

Through this sale, the National Pension Service achieved a return of more than three times the invested principal in foreign currency terms.

Seowonju, Fund Director of the National Pension Service, explained, "Despite the challenging environment of the COVID-19 pandemic and rising interest rates, we actively managed the assets and sought an appropriate timing for the sale, resulting in high returns."

The National Pension Fund had proactively invested in the logistics sector, anticipating its high growth potential.

In October 2012, the National Pension Service acquired a 50% stake in Australian logistics centers for about 149 million AUD (approximately 170 billion KRW) through the global real estate investment management firm Heitman LLC.

Previously, Heitman established a joint venture (JV) with the Australian asset management company Dexus and selectively participated in newly built or planned development assets, forming a total of 20 assets.

The portfolio held by the National Pension Service is concentrated in Sydney (12 assets) and Melbourne (8 assets), where logistics demand is highest in Australia.

The leased area is approximately 340,000 square meters, with tenants including Carlton & United Breweries, Australia's largest liquor company, the major supermarket chain Coles, and Visy, a manufacturer and recycler of industrial packaging materials, maintaining a 100% occupancy rate.

By selling its entire 50% stake to UniSuper, the National Pension Service has fully exited its investment in the Australian logistics center portfolio.

The National Pension Service plans to expand overseas and alternative investments to enhance safety through diversification and improve returns in the medium to long term.

Kim Taehyun, Chairman of the National Pension Service, stated, "This sale of the Australian logistics center portfolio is a good investment case for securing stable medium- to long-term returns. The National Pension Service will continue to timely secure investment opportunities in high-quality overseas assets to enhance investment performance."

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