A consortium led by US-headquartered investment manager KKR has sold a modern logistics facility in Pyeongtaek City, South Korea to Korean property asset manager Pebblestone Asset Management.
Completed in 2019, the BLK Pyeongtaek Logistics Centre features 136,500 sq.m. of gross floor area, making it one of the largest, modern logistics assets in the city, according to KKR.
“The rapid growth of e-commerce is transforming South Korea’s logistics sector, creating a growing demand for fully-integrated and technology-enabled warehousing facilities that can support greater volumes and faster delivery,” said John Pattar, partner and head of Asia Pacific real estate at KKR.
The South Korean warehouse market remains competitive, drawing investments from the likes of Nuveen Real Estate, Credit Suisse and CBRE Global Investors last year.
The newly-acquired logistic facility is located near Pyeongtaek Port, one of the largest ports in South Korea. The sale price was not disclosed.
The multi-tenant facility is let to a major e-commerce retailer and various third-party logistics companies.
“We are pleased to close this deal successfully on behalf of Korean institutional investors,” said Terry Hwang, CEO and managing partner of Pebblestone Asset Management Korea,
“BLK Pyeongtaek Logistics Center is a one-of-a kind facility strategically located in a fast-growing coastal city with easy access to major transportation routes.
“The center’s design features, including its cutting-edge cold and dry warehousing facilities, also make it a compelling option for companies across many industries.”
The transaction follows a string of deals over the past year, most recently London-based M&G Real Estate’s US$131m purchase of the Yongin Baegam Logistics Centre last November.
Nuveen Real Estate entered the South Korean market with the acquisition of a last-mile logistics facility in the Greater Seoul area in August last year, while Credit Suisse Asset Management’s property arm snagged two warehouses in July.
Last June, US-headquartered CBRE Global Investors acquired a seven-storey logistics development in the South Korean city of Ansan, offering 239,000 sq.m. of total gross floor area.
KKR has committed more than US$1.4bn of equity to its pan-regional real estate strategy, as of end-2019.