KKR and Kreate acquire the Cheongna Logistics Center in South Korea

Global investment firm KKR and its affiliated Korean asset manager Kreate Asset Management said on Tuesday they have bought the Cheongna Logistics Center, in what they called South Korea’s largest single-asset logistics deal.The companies did not disclose the financial terms of the transaction.

One person with knowledge of the matter said the deal would value the Incheon-based logistics asset at just over 1 trillion won ($696 million), including debt. The source could not be named because the information was confidential.Brookfield Asset Management, which sold the logistics center to the KKR-led consortium, said in a separate statement on Tuesday that it has completed the sale, without disclosing financial details.

Completed in 2022, the 4.6 million-square-foot facility is fully leased and ‌strategically located‍in the Greater Seoul metropolitan area, KKR said.

“Modern logistics facilities are playing an increasingly critical role in supporting Korea’s rapidly evolving, e-commerce-driven economy as demand for large, high-quality warehouses that can support advanced logistics and fulfillment operations continues to grow,” KKR said in its statement.

The acquisition was made through funds managed by KKR and Kreate, with the latter taking over management and operation of the property, the New York-based company said in the press release. According to local media, KKR has won a bidding process for the property.

The investment was made primarily through KKR’s real estate strategy in Asia and contributes to its growing footprint in South Korea.

Previous investments include Incheon Metro Logistics, a large-scale warehouse development in Incheon, and Hwaseong Jegi Logistics Center, a key facility in a major logistics hub.

KKR has also been active in logistics across Asia, with investments in LOGISTEED, a leading third-party logistics provider in Japan, and Reliance Logistics Group in India.