Global investment firm KKR, through a fund managed by its affiliate Kreate Asset Management, has completed the acquisition of Cheongna Logistics Center in Incheon, the largest single-asset logistics transaction in South Korea to date. Financial terms of the deal were not disclosed.

Completed in 2022, Cheongna Logistics Center is a modern, 4.6-million-square-foot logistics facility in a strategic location and with strong connectivity to major transportation hubs within the Greater Seoul metropolitan area.

Modern logistics facilities play an increasingly critical role in supporting Korea’s rapidly evolving, e-commerce-driven economy as demand for large, high-specification warehouses that can support sophisticated logistics and fulfillment operations continues to grow, KKR says.

Following the acquisition, Kreate, focused on commercial real estate, with expertise in logistics, offices, hospitality and rental housing assets in Korea, will manage and operate Cheongna Logistics Center, while KKR will support through value-creation strategies and by helping maintain the high quality of the asset.

“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,” says David Cheong, head of acquisitions, Asia real estate, at KKR. “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.”

The acquisition marks KKR’s latest real estate investment in Korea, which has included Incheon Metro Logistics, a prime, large-scale warehouse development in Incheon; Hwaseong Jegi Logistics Centre, a warehouse in a core logistics location in Hwaseong; Centerfield, a prime office complex in Seoul’s Gangnam Business District; and Namsan Green Building, an office building in Seoul’s central business district.

It also marks KKR’s latest investment in the logistics space, which has included Logisteed, a third-party logistics company in Japan, and Reliance Logistics Group in India.