The real estate fund management arm of M&G Investments, M&G Real Estate, has completed a US$141 million acquisition of Upsquare, a shopping mall in South Korea, as part of its core Asia property strategy.
“We are pleased to expand our core Asia Pacific property portfolio with the addition of Upsquare in Ulsan, a town centre enjoying established footfall given its premium location. This property is anticipated to offer yield enhancement potential, which we believe will contribute significant value to our Asia strategy,” comments Chiang Ling Ng, chief executive officer of M&G Real Estate Asia.
Located in a prime shopping district within central midtown Ulsan City – a key industrial hub in the country, Upsquare is a three-year-old freehold retail complex. Anchored with two popular department stores, among other retail and entertainment outlets and eateries, the multiplex enjoys a vibrant inner urban retail appeal and high traffic, particularly from young affluent Koreans. Midtown Ulsan is one of the busiest shopping districts within South Korea. Domestic and foreign brands within the complex include multiplex cinema chain CGV, Kyobo Book Centre, and international fashion brands H&M and Uniqlo.
“Despite the trend of online shopping, investment sentiment in the South Korean retail sector remains strong, with the downtown shopping mall format growing in appeal to the experience-demanding shoppers,” remarks Hyesik Ryu, managing director, M&G Real Estate Korea.
He continues: “Upsquare is well-positioned to benefit from this trend by providing a spectacular experience in dining, entertainment and shopping. More importantly, Ulsan’s vibrant regional position, coupled with our long-term approach to ownership, offers a competitive edge to our tenants and enables us to deliver a strong investment performance here, and in the wider region in which we invest.”
As of June 30 this year, M&G Real Estate had over $33 billion in AUM invested in a broad spread of properties across Europe, North America and Asia Pacific.