This article was published on June 9, 2025, at 4:02 p.m. on the ChosunBiz MoneyMove site.
The public offering listed REIT, IGIS Value Plus REIT, is experiencing delays in the sale of its logistics center through its subsidiary REIT. Although the asset is leased long-term to a logistics subsidiary of a domestic conglomerate, it is analyzed that concerns about excess supply are making it difficult to find buyers.
However, with the recent recovery in the dry logistics market, it seems likely that a sale will be attempted again soon. Consequently, the asset rebalancing plan, which aimed to incorporate office buildings, is expected to be adjusted.
According to the investment bank (IB) industry on the 9th, IGIS Value REIT has adjusted its plan to sell the YM Logistics Center, which it indirectly holds through the subsidiary REIT. As a result, the land and building, initially classified as assets for sale, have been reclassified as tangible assets, and the relevant institutional sector has been reclassified from discontinued to ongoing business. The IGIS REIT side stated, “We assessed that the likelihood of a sale in the short term is very low.”
The YM Logistics Center is a room-temperature logistics center located in Daewol-myeon, Icheon-si, Gyeonggi Province. Korea Asset In Trust conducted a forward purchase transaction, and IGIS Value REIT, which participated as a core investor, secured equity. The YM Logistics Center has a total floor area of 28,707.4 square meters (8,684 pyeong) and consists of one basement floor and three above-ground floors.
Samsung Electronics Logistics, a subsidiary of Samsung Electronics, is currently leasing the entire logistics center long-term. The rent per pyeong (3.3㎡) is 26,000 won, and the management fee is 20,000 won, with a cap rate of 5.3%. The cap rate refers to the net rental income relative to the real estate acquisition price. Given that it is common for the cap rate to drop below 4%, some assessments have deemed securing a cap rate in the 5% range as unusual.
IGIS Value REIT indirectly owns the YM Logistics Center through the subsidiary 'Kite J20 Trust Management Real Estate Company'. In November 2021, it participated in a paid-in capital increase conducted by Kite J20, acquiring a 75.0% equity stake. After Kite J20 conducted a capital reduction, the equity stake expanded to 96.8%. The remaining equity is held by Creed Consulting and Jinju Housing.
Initially, IGIS Value REIT had planned to sequentially sell the YM Logistics Center, Taepyeongno Building, and Bundang Hostway Data Center to secure approximately 140 billion won as part of its asset rebalancing plan. After liquidating Kite J20, it intended to acquire small to medium-sized office assets. The YM Logistics Center is the only logistics center in the portfolio of six assets held by IGIS Value REIT.
However, as the sale of the YM Logistics Center is delayed, it seems that the asset rebalancing plan will face setbacks for the time being. Kite J20 recorded a revenue of 1.591 billion won and a net loss of 1 billion won last year. Since the lease contract for the currently leased Samsung Electronics Logistics runs until next year, it seems likely that they will soon seek a new lessee or change the lease agreement before attempting to sell again.
As a result, refinancing was conducted to change the existing main lenders from Standard Chartered Bank and Hana Bank to Shinhan Bank. The total secured loan amount is 36 billion won, determined under conditions that include an additional charge of 162 basis points (1 basis point = 0.01 percentage points) above the interest rate of 91-day Certificates of Deposit (CD). The maturity is until April next year.
An industry source noted, “As foreign investors increase investments in logistics centers with low prices while implementing value-add strategies, the timing for sales will soon arrive,” adding that, “Recently, the cap rate has shown an upward trend near the 6% range, indicating a recovery in revenue.”