KKR has completed the acquisition of Cheongna Logistics Center, a large-scale logistics facility in Incheon, South Korea, through a fund managed locally by its affiliated Korean asset manager, Kreate Asset Management (Kreate). KKR said the deal represents the largest single-asset logistics transaction in South Korea to date, underscoring sustained institutional demand for modern, high-specification warehouse space tied to the country’s e-commerce-led logistics growth.
Completed in 2022, Cheongna Logistics Center spans approximately 4.6 million square feet and is positioned to serve the Greater Seoul metropolitan area due to its connectivity to major transportation hubs. KKR said the facility is fully occupied, reflecting what it described as resilient tenant demand and the depth of Korea’s modern logistics sector as distribution networks become more complex and fulfillment requirements become more sophisticated.
Under the post-acquisition structure, Kreate will manage and operate the asset, leveraging its commercial real estate platform across logistics, offices, hospitality, and rental housing in Korea. KKR said it will support value-creation initiatives and help maintain the facility’s quality, combining its global real estate and logistics experience with Kreate’s local operating capabilities.
The investment was made predominantly through KKR’s Asia real estate strategy. KKR framed the transaction as a continuation of its broader real estate activity in Korea, citing prior investments that include Incheon Metro Logistics, Hwaseong Jegi Logistics Centre, Centerfield in Seoul’s Gangnam Business District, and Namsan Green Building in Seoul’s central business district. The firm also pointed to recent logistics-related investments elsewhere in Asia, including LOGISTEED in Japan and Reliance Logistics Group in India, as part of an ongoing focus on the sector.
Financial terms of the acquisition were not disclosed.
KEY QUOTES:
“As distribution networks become more complex and modern logistics play a growing role in supporting Korea’s modern economy, we are delighted to invest in Cheongna Logistics Center, a leading logistics facility with sophisticated capabilities in a strategic location. We look forward to supporting its continued growth by leveraging our global real estate and logistics expertise alongside Kreate’s local capabilities, while further expanding our exposure in the logistics sector and through deepening our collaboration with Kreate.”
David Cheong, Head of Acquisitions of Asia Real Estate, KKR
