The competitiveness of logistics centers can no longer be explained by specifications alone. Even assets with similar locations and scale often demonstrate meaningful differences in tenant demand, rental levels, and operational efficiency. As market conditions evolve, the importance of evaluating these differences continues to grow.

A high-quality logistics asset is one where hardware and software elements are seamlessly integrated to align with tenants’ operating models—ultimately maximizing business performance. From this perspective, the following criteria are essential in identifying superior logistics assets:

1. Location

Competitive logistics centers in the Greater Seoul area are typically located near key ring roads, including the Seoul Ring Expressway and the Second Ring Expressway. Assets with strong accessibility to major expressways such as the Gyeongbu and Jungbu corridors, as well as national routes (No. 3, 17, and 45), consistently attract strong tenant demand.

Logistics centers with such locational advantages maintain stable occupancy even during periods of increased supply, supporting long-term asset value resilience.

2. Scale

Global logistics operators are increasingly adopting advanced hub-and-spoke models, exemplified by Amazon’s Fulfillment by Amazon (FBA) system. This structure centralizes inventory in key hubs and distributes regionally, optimizing overall logistics efficiency.

Such operating models require large-scale facilities capable of handling significant inventory volumes. As a result, both hub centers and fulfillment centers are trending toward larger formats.

As this structure becomes more prevalent, demand for large-scale logistics assets is expected to grow. At the same time, regulatory constraints and permitting challenges are limiting new large-scale developments in the Seoul metropolitan area, further reinforcing the scarcity premium of such assets.

3. Layout

Facility layout is a critical determinant of operational efficiency. Factors such as truck turning radius, dock configuration, spacing between loading bays, ramp gradients, and circulation flow directly impact operational performance.

Even minor design differences can significantly affect throughput and cost efficiency. As such, well-engineered layouts form a fundamental pillar of logistics asset competitiveness.

4. Power Infrastructure

The operating environment of logistics centers is rapidly evolving alongside the expansion of automation. Increased demand for climate control, along with the adoption of electric vehicles and electric forklifts, is structurally driving higher power consumption.

Adequate power infrastructure is therefore a key factor in ensuring both the sustainability and long-term competitiveness of logistics assets. In response, IGIS Asset Management has proactively acquired and developed assets with high power capacity, while continuing to enhance asset value through post-completion upgrades, including power expansion and the integration of renewable energy solutions.

5. ESG

The value of logistics assets is increasingly differentiated by ESG performance. Assets equipped with solar generation, certified under LEED or GRESB, and integrated with smart logistics technologies command strong investor and tenant preference, often benefiting from a “green premium.”

Accordingly, IGIS evaluates ESG standards prior to acquisition and actively enhances ESG performance post-acquisition through targeted capital expenditure, including securing green certifications. Going forward, IGIS will continue to align with evolving ESG standards, strengthening asset value while meeting investor expectations.

Delivering Sustainable Logistics Investment

As the competitiveness of logistics assets becomes increasingly driven by a combination of operations, technology, and ESG, asset managers are required to develop increasingly advanced and specialized capabilities.

IGIS Asset Management has established a dedicated organizational structure spanning the full lifecycle of logistics centers—from development through to operations. This platform is underpinned by rigorous analysis of asset fundamentals and proactive engagement with tenant operational needs, enabling sustainable value creation.

At its core, logistics investment is about identifying assets that can sustain structural competitive advantages even as market conditions evolve, while delivering both long-term income stability and value growth. Maintaining this balance between stability and growth lies at the heart of IGIS Asset Management’s logistics investment approach.

Written by Seunghoon Lee, Head of Part 4, Business Group

Structured & Edited by Soyeong Park, Brand Communications Manager

────────────

- This content has been prepared for informational purposes only and is not intended to serve as a basis for investment decision-making by users. It is not created for the purpose of promoting, soliciting, or recommending financial investment products, providing investment advice, or making stock recommendations. The company makes no express or implied representations or warranties regarding the accuracy or completeness of any materials or information provided in this content. Furthermore, the company assumes no responsibility or liability for any damages or losses incurred because of investment decisions made based on this content. Potential investors shall not raise any objections in this regard.

- The above information is based on data as of April 2026 and has been prepared in compliance with applicable laws and internal control standards. The materials and information in this content are subject to change due to changes in market conditions, the stock market, interest rates, inflation, tax policies, and other social, economic, or policy-related factors. Additional risks may arise from asset price fluctuations, exchange rate volatility, credit rating downgrades, declines in real estate prices, investment performance results, or unforeseen natural disasters such as fires, floods, or pandemics. Consequently, financial (investment) products may result in partial or total loss of the principal investment, with such losses being borne by the investor. These products are not protected by the Korea Deposit Insurance Corporation under the Depositor Protection Act. Past performance does not guarantee future returns, and the results may differ from the performance at the time of content creation or in the future. Additional transaction and other costs may also apply.

- This content has not been legally submitted or registered, nor has it been approved under any applicable law. It may contain subjective opinions that do not necessarily represent the official views or statements of the company. This content is not intended to solicit, offer, or recommend the subscription, purchase, or sale of securities. Investors have the right to receive sufficient explanations from financial product sellers in accordance with applicable laws. All investment decisions should be made carefully and solely on the information provided in the securities registration statement, (preliminary) investment prospectus, and terms and conditions. Investors should make prudent decisions based on their own judgment. [IGIS Asset Management Co., Ltd. Compliance Officer Review No. 900-26-AD-083 (April 14, 2026 – April 13, 2027)]